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Weird Stuff in Real Estate: Patch the Cracks and Then Disclose The Cracks.

By Lloyd Binen

Real Estate Agent with Certified Realty Services BRE# 00572654

December 13, 2011 04:55 AM

Weird Stuff in Real Estate: Patch the Cracks and Then Disclose the Cracks.

Cracks in sheetrock are very common in Silicon Valley homes. We have earthquakes and we have expansive clay soils in some in parts of the Valley. As a result many homes shift enough to crack the sheetrock. Usually they're hairline cracks starting at the corners of the doorways.

I recommend to my sellers that they patch the cracks and paint at least that the room. A freshly painted interior gives a clean, new feeling that pays dividends well beyond the cost and inconvenience of painting.

But then, I must disclose the cracks we just hid. In CA, as in many states, agents are responsible for a "reasonably diligent visual inspection of the property" and disclosure of conditions that could influence the buyer's decision to purchase the home.

If we're not sure whether or not a particular condition would influence the buyer, we disclose that condition. That's the advice from the California Association of Realtor's Legal Department. Let the buyer decide if a condition is "material" to them.

It's just sort of bizarre. We patch the cracks so they can't be seeen, then we disclose them. Seems kind of weird, doesn't it?

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Lloyd Binen

Realtor/Broker/CA DRE 572654

Certified Realty Services

19200 Shubert Drive

Saratoga, CA 95070

Certified Residential Specialist (CRS); Graduate Realtors Institute (GRI)

408-373-4411

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Carissa Acker

Real Estate by Design with Keller Williams Realty - Denton, TX

All great information. Not only does a fresh coat of paint cover the freshly repaired cracks, but it just makes the house look that much more appealing to buyers. Good on you!

Dec 13, 2011 05:37 AM

Certified Realty Services - Saratoga, CA

Silicon Valley Realtor since 1976; 408-373-4411

Hi Carissa, thanks for the comment..

Dec 13, 2011 07:00 AM

Dick Greenberg

New Paradigm Partners LLC - Fort Collins, CO

Northern Colorado Residential Real Estate

Hi Lloyd - While I would certainly want to err on the side of caution in any disclosure situation, the kind of cracks I think you're talking about are considered cosmetic here. Of course, we don't (usually) have eathquakes, so yours could be big enough to be structural.

Dec 13, 2011 10:14 AM

Michael S. Bolton

Michael S. Bolton,Inc. - Zimmerman, MN

MN Appraiser

Lloyd~Hopefully some buyer doesn't ask where exactly the cracks were so they could see for themselves-that would stink.

Dec 13, 2011 11:17 AM

Maureen Bray Portland OR Home Stager ~ Room Solutions Staging

Room Solutions Staging, Portland OR - Portland, OR

"Staging Consultations that Sell Portland Homes"

Hi Lloyd ~ That does sound kind of strange, but in places like CA it makes sense. Buyers would likely want to know about the "previous" cracks. You have a lot of think about with disclosures of things that no longer even show!

Dec 13, 2011 12:39 PM

Hi Dick, Even the ASHI inspectors say they're cosmetic, but most agents disclose them anyway. I always do. Eventually the cracks will re-appear, so we might as well let the buyer know they're there.

Michael, I'll show the buyer's agent or the buyer where the cracks were.

Maureen, You're right. The buyer's discovery of even minor un-disclosed conditions after closing causes them to get hyper-sensitive and suspicious about other, undiscovered, conditions. I don't want a buyer in that state of mind after closing, especially when I'm the listing agent. Best to give them the good, bad and ugly before they even make their offer, I think.

Carmel is a small town. Did you know/meet Mayor Clint? Eat at the Hog's Breath?

Dec 13, 2011 04:48 PM

Michelle Gibson

Hansen Real Estate Group Inc. - Wellington, FL

REALTOR

Lloyd - The only cracks I typically see in South Florida are settlement cracks in the foundation, which I've always been told is normal since our homes are built on slabs.

Dec 14, 2011 01:10 AM

Sharon Tara

Sharon Tara Transformations - Portsmouth, NH

Retired New Hampshire Home Stager

Do these cracks typically result in a buyer not making an offer? It seems to me that if the work has been repaired, that would be the end of it.

Dec 19, 2011 12:10 PM

Weird Stuff in Real Estate: Patch the Cracks and Then Disclose The Cracks.

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