Full Disclosure Pays
When Selling a Home

Question: I received a good offer for my home, but the buyer backed out after receiving an inspection report that said many items would "need attention." I was willing to fix the four items the report said were "not acceptable," but the items that supposedly needed attention were actually things that could have been considered upgrades. Am I obligated to show this ridiculous inspection report when another offer comes along?

-- Stanley, Portland, Ore.

Stanley: I would be sure to show every buyer all inspection reports. The theory is that anything you disclose won't come back to haunt you.

Some agents, however, say that disclosing minor issues isn't worth the chance that you'll spook the buyer. But this inspection report, no matter how innocuous it may seem to you, was enough to get the old buyer out of the deal. A new buyer may use just that point to come back at you later for failure to disclose important information about the home.

A good general rule is to disclose everything. Most serious buyers will be reasonable about inspection reports. If the inspector found only minor problems, these issues probably won't keep serious buyers from making the purchase.

Mr. Irwin has more than 25 years' experience as a Los Angeles-area real-estate broker. He is the author of more than two dozen books about real estate and is recognized as one of the most knowledgeable writers in the real-estate field. Mr. Irwin's most recent book is "Tips and Traps When Renovating Your Home," (McGraw-Hill, 2000).

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