Disclosing Water Damage When Selling A House In Massachusetts

Published on June 17th, 2023

As a potential home buyer or seller, you're no doubt aware of the importance of disclosure. To ensure everyone is on the same page, buyers and sellers are typically required to complete a disclosure form that lists any known defects with the property.

But what happens when there's something you know about the property but it's not disclosed? This can be a tough and awkward situation, especially when it comes to water damage.

So, what should you do if you're selling a house with water damage? Keep reading to find out. Even though the property may be worth less, it's far better to disclose then having legal issues down the road.

What Does Law Say About Water Damage When Selling A House In Massachusetts?

When it comes to disclosing water damage when selling a house, many sellers fear that honesty is the best policy. After all, disclosing past water damage can send a potential buyer running for the hills.

However, by failing to disclose, the seller risks scaring off the buyer when the home inspection uncovers evidence of damage.

While it's not a federal law, in most states, it's not permitted to lie about your knowledge of water damage.

Besides, state laws are different, so you need to check out your state's specific laws or else be ready for a high-cost claim.

So what's a seller to do? So, you must fill out relevant seller disclosure forms truthfully and hope for the best.

After all, buyers are usually willing to overlook minor cosmetic issues. But if the seller tries to hide significant problems like water damage, they're likely to lose credibility - and the sale.

Should You Disclose A Property’s Water Damage History To Potential Buyers In Massachusetts?

When it comes to selling a home, disclosure is critical. Buyers have an absolute right to know about any potential problems with the property, and failing to disclose them can come back to bite you.

The real estate agent will provide a disclosure form for sellers to complete, which asks about any known issues with the property.

If you don’t disclose water damage, for example, and the buyer later discovers it, they could sue you for the cost of repairs.

So while seller disclosure may not be the most fun part of selling a home, it’s critical to avoid any legal trouble down the line.

Some Common Challenges Of Selling A Home With Water Damage In Massachusetts:

Selling a house with water damage is not that simple. You will have to face various obstacles when selling a property with water damage. However, some common issues that you can face are:

Reduction In Price:

It's no secret that real estate transactions can be a tricky business. Not all sellers are upfront about a property's condition, which can lead to problems down the line for unsuspecting buyers.

One common issue that arises is water damage.

If your home's buyer agrees to buy a property or house with water damage, it's only natural if you plan to sell a house with water damage, you first need to get a real estate attorney.

They'll help you navigate seller disclosure issues and protect you from potential liability. Next, get a seller disclosure statement from the buyer.

This will outline the buyer's expectations for the property and allow you to negotiate a fair price.

Finally, ensure you get the repairs and remediation done as soon as possible. The sooner you fix the problem, the better your chance of selling the property.

However, home sellers often dig their heels in on this issue, refusing to budge on the asking price.

As a result, buyers are left with the difficult decision of whether to accept the property as is or walk away from the deal.

In either case, it's essential to be aware of the potential pitfalls of purchasing a property with water damage. You can avoid many unwanted surprises with some details, knowledge, and foresight.

Health Hazards:

If your home has been flooded, it's essential to be aware of the health risks that come with water damage.

Stagnant water can attract mold and other harmful bacteria, posing severe health risks for young children, the elderly, and those with weakened immune systems.

In addition, water-logged materials can also lead to the development of dangerous molds.

If you feel or suspect that your house has water damage, it's essential to have a professional inspect the property for mold and other contaminants.

Even if your home has not been flooded, it's important to look for water leaks, as they can also lead to mold growth.

Be sure to regularly check basement drains, cracks in the foundation, and sewer lines for any signs of leaks. You need to take effective and immediate measures to keep your home safe and to sell it on your terms.

These problems can turn off your home’s buyers, and you might find it challenging to sell your home.

Safety Concerns: 

When a home sustains water damage, it can create a whole host of challenges for the seller - from assessing the extent of the damage to making necessary repairs.

However, one of the most significant challenges is addressing home buyers' safety concerns. Some common repairs you should consider are basement repairs, a leaky roof, repairing of the basement wall and basement cracks, leaky sink, repairing of drainage tile and sewer line, and other similar repairs.

If the water damage has affected the home's electrical system, it can pose a security and safety risk or even create an increased risk of an electrical fire.

Fortunately, most states have disclosure laws that require sellers to disclose known defects in the property.

As a result, sellers who are honest about the water damage will be more likely to find a buyer willing to take on the risks.

Future Water Damage:

Another challenge of selling a home with water damage is that it is more prone to natural disasters.

A home near the water or in a flood zone is more prone to upcoming hurricanes and storms and can cause various flooding issues.

Despite that buyers know that the home is situated near a flood zone, they will look at it as a weak point and might use this to reduce the price.

This past year, we've seen increased natural disasters due to huge and historical rainfall events. As a result, homes located in high-risk areas are now at an even greater risk for flooding.

If you're considering selling your water-damaged home, be prepared to discuss the increased risk with potential buyers.

You can also offer a discount to sweeten the deal. Many laws allow sellers to provide a discount on the property's purchase price.

How Your Real Estate Agent Can Help?

As a seller, you must mention and disclose all material defects with your property before entering into a contract with a buyer. This includes defects like water damage.

Many seller disclosure laws require that you provide the buyer with a disclosure form that outlines any material defects with the property.

If you're unsure whether your water damage meets the legal definition of a material defect, you can always ask your real estate attorney for advice. Remember attorney-client relationship can be highly effective and beneficial in this case.

In addition, your real estate attorney can connect you with their network of preferred contacts, from restoration specialists to contractors and professional home inspectors.

Arranging for a pre-listing inspection is a great way to assess your home's water damage before you list your house on the market.

In the End:

Disclosure is critical when selling a house with water damage. You don’t want to get caught up in a legal battle because you tried to save a few bucks on disclosure. So you need to be familiar with seller disclosure laws in your area.

By working with experienced real estate agents, you can connect with their network, who will help you through the entire process, from restoration to home inspection.

Have you ever had to sell a house with water damage?