Should I disclose past inspection results?
Reveal or Hide Past Inspection Results? Sell Faster When You Choose Right.
Quick answer: yes—disclose, but do it smart
If you’re selling a home, hiding a past inspection rarely helps. Full transparency protects you from legal risk, speeds negotiation, and improves buyer trust. Done the right way, disclosure can even protect your appraisal and close your sale faster.
Why disclosure matters for real estate sales
Home inspections and appraisals are two different checks on value and condition. Appraisers focus on market value and comparable sales. Inspectors focus on safety and condition. If a past inspection reveals defects, an appraiser or buyer’s inspector will likely find them anyway. Revealing results first controls the story.
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Legal and ethical basics you must know
- Most markets require sellers to answer property disclosure forms. Lying or withholding known defects can lead to lawsuits after closing.
- A disclosed issue with documentation (inspection report, repair receipts) shows you acted in good faith.
- Always consult your realtor and local disclosure rules—laws vary by province/state.
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When to disclose past inspection results
- If the report shows safety issues (mold, structural, electrical, roof leaks): disclose immediately.
- If the issue was repaired: disclose plus include receipts and before/after photos.
- If the report is minor cosmetic items: still disclose; list them on disclosure forms but note they’re cosmetic.
How early disclosure helps the appraisal and sale
- Appraisers value full context. If defects are disclosed and repairs documented, appraisers can justify the value you ask for.
- Buyers trust sellers who disclose. Trust lowers objections, shortens negotiations, and reduces last-minute inspection renegotiations.
- A pre-listing inspection paired with a disclosure packet makes your listing stand out as transparent and professional.
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Practical steps sellers should take now
- Get the original inspection report and any repair invoices.
- Obtain a pre-listing inspection if you don’t have one—control timing and findings.
- Create a disclosure packet: report, receipts, contractor contact info, photos.
- Tell your agent immediately so the MLS and showings have accurate info.
- Consult a lawyer if defects are significant or you foresee disputes.
Real talk: when disclosure hurts—and how to manage it
If you disclose a major defect, price and marketing must adjust. Use transparency to justify a price that reflects condition, or complete repairs and show documentation. Buyers respect honesty; it converts to fewer surprises and fewer failed appraisals.
Bottom line
Disclosing past inspection results is the smarter, safer path. It reduces legal risk, helps appraisals stay reasonable, and speeds sales when handled with documentation and openness. Don’t leave this to chance.
Need expert help handling a disclosure packet, pre-listing inspection, or appraisal strategy? Contact Tony Sousa—market expert who gets results: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
