When preparing to sell your home, transparency and preparedness can go a long way. One tool that can help you accomplish both is the Seller’s Statement of Condition—a document where homeowners disclose known details about the condition of their property. But is it the right move for every seller?
Let’s break down what this document is and weigh the pros and cons of including one when listing your home.
What Is a Seller’s Statement of Condition?
Also referred to as a property disclosure statement, this document outlines key information about the physical condition of your home. It may include:
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Structural details
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The age and condition of major systems (e.g., plumbing, heating, electrical)
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Appliance functionality
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Past repairs, upgrades, or improvements
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Known issues, defects, or ongoing maintenance needs
This statement is often completed by the seller (sometimes with the assistance of a real estate professional) and shared with prospective buyers as part of the due diligence process. In some cases, sellers also include a recent home inspection to support the disclosures.
Pros of Using a Seller’s Statement of Condition
1. Promotes Transparency and Builds Trust
Providing a detailed disclosure upfront helps establish trust with potential buyers. It signals honesty and reduces buyer skepticism, creating a more comfortable and confident environment for negotiations.
2. Sets Clear Expectations
Buyers who know about a home’s quirks, past repairs, or maintenance history are less likely to be caught off guard during the home inspection. That can reduce surprises and keep the deal on track.
3. Minimizes Legal Risk
Disclosing known defects may help protect sellers from legal disputes down the line. It can serve as documentation that the seller was upfront, helping limit liability for claims of nondisclosure.
4. May Speed Up the Sale
When buyers feel informed and confident, they’re often quicker to make an offer. Having condition details available upfront can reduce time spent addressing questions or renegotiating after the inspection.
5. Attracts Serious Buyers
Buyers who review the statement and still schedule a showing are typically more motivated and better informed—making them more likely to move forward.
6. Smoother Negotiations
With fewer surprises during the home inspection, negotiations can proceed with less friction. Buyers and sellers are more likely to agree on fair terms when both have a shared understanding of the property’s condition.
Cons to Consider
1. Potential Buyer Hesitation
Being transparent about issues—even small ones—can raise red flags for some buyers. While many will appreciate the honesty, others may choose to walk away without asking further questions.
2. Could Invite Pre-Inspection Repairs
If the statement reveals a repairable issue, some buyers may expect it to be addressed before closing—even if it’s something they would have otherwise overlooked.
3. May Limit Negotiating Flexibility
Once a condition is disclosed, it’s on record. This could limit a seller’s ability to negotiate certain terms later in the process or remove “as-is” protections in some cases.
4. Not Always Required
In Massachusetts, for example, property disclosures are not legally required in most transactions. Some sellers choose to let the buyer’s home inspection speak for itself, especially in hot markets or “as-is” sales.
So, Should You Use One?
For many sellers, the benefits of a Seller’s Statement of Condition outweigh the risks—especially when the goal is a smooth, informed, and low-stress transaction. That said, whether or not to use one should depend on your property’s condition, the market climate, and your own comfort level with disclosure.
Thinking of listing your home? I’d be happy to help you assess whether providing a Seller’s Statement of Condition is the right move for your situation—and walk you through the best way to prepare your property for a successful sale.