Property Disclosures and Report

Dated: December 11 2020

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This is my last newsletter for the year and I hope it finds you well!

I have put together a summary on Property Disclosures and the recent Real Estate Market.

 
 Image courtesy of Pixabay

Have you wondered about Property Disclosures?

Whether you are the buyer or the seller, disclosures are a valuable part of a transaction.

Making a home look cosmetically fabulous before putting it on the market is common.  We all want the property to look its best!  But what if that quick fix was intended to cover something up?

By law, a seller must tell prospective buyers about known defects with their home before the sale.  In New Mexico, property disclosures are not required, however defects can be shared by other written means.

These requirements are laid out in New Mexico Statutes § 47-13 et seq., also known as the Real Estate Disclosure Act.

Your Realtor will facilitate the receipt of any available disclosures when you are the buyer, and can discuss how best to disclose information when you are the seller.

What is A Real Estate Disclosure?

Disclosures can come in a variety of forms and are the buyer's opportunity to learn as much as possible about the property.  New Mexico's Realtor Association provides a form that is typically used here.  The seller fills in the form with a series of yes/no questions, 'I don't know' and comments.

What do Sellers Disclose to Potential Buyers?

Seller disclosures cover a vast array of topics including a home's major systems and renovation work done without permits.  They serve to inform buyers as well as protect sellers from future legal action.

Depending on where you live, sellers can be on the hook for their failure to disclose known items and should err on the side of caution... if you know it, disclose it!  Hiding something can come back to haunt a seller in the form of a lawsuit in the future.

The Federal Government requires disclosure of health hazards such as asbestos and lead-based paint, however each state or county may have other requirements.

Is a Disclosure the Same as a Home Inspection?

In short, no.  A buyer should always get a full property inspection before moving ahead with the purchase.  You may even desire specialists for certain inspections such as septic systems, wells, duct scopes or full roof evaluations.

Even new properties risk coming with unknown flaws, but consider inspections as 'buying some peace of mind'.  

Realize that inspectors cannot open walls or see what is hidden and sellers do not always know many details about the home.  Buyers must take all the information available to them and decide what is acceptable or evaluate further.
 
Image Courtesy of Pixabay


Let's finish up with:

Market Report from November 2020  Click for direct link!

Highlights (the highlights are a comparison between November 2019  and November 2020)

  • the median detached home price rose 14.8  percent to $256,000
  • the average detached home price increased 13.8 percent to $298,932
  • the overall inventory of detached homes for sale decreased 54.6 percent to 1,084.


    

With more specific questions, to receive a market report on your property or just have a friendly chat, reach out as I love hearing from you!

Sincerely,

Lydia

Blog author image

Lydia Shewchuk

Lydia was born in Canada and spent the majority of her years in Calgary, Alberta working as a Physical Therapist. When Lydia and her husband Kevin chose to relocate to the US and the time came to se....

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