Do I Have to Report Water Damage if I Sell My Home?

By the time you start noticing signs of water damage to your home, it might already be too late. You may not even realize there's a problem until you start getting sick from mold growth. 

Whether or not you find evidence of water damage before selling, you should note any cracks, stains, musty smells, or peeling paint. Those are all plumbing and water issue indicators and, as such, you should report them to potential buyers.

Home inspectors, in particular, take note of potential signs of undetected water damage, including cracks, holes, warped floors, and stained walls. If you don’t plan to fix these signs, they can cause structural damage to your home’s floors and foundation. It’s always best to hire a professional to make sure you don't have any bacterial growth before you're ready to list your home.

Are you worried water damage will turn buyers off from looking at your home? Many homeowners experience some form of water damage to their property, so breathe a sigh of relief. Most buyers in the market will understand, especially if you've taken the proper steps to fix the problem.

No matter what, if you're selling a home with water damage, you should know what concerns and objections potential buyers will have. Homelight notes that most sellers face issues with market price, utility system concerns, health risks, and the potential for future damages to occur.

Market Price Reduction

Buyers will subtract any potential repair costs from their offers, so keep that in mind when you negotiate the asking price. The cost is largely based on how much damage is present and how it happened. Repair water-damaged areas before selling and you may have a better chance of getting an offer closer to market value.

Utility System Concerns

With any water-affected property, the damage could be the result of plumbing system issues. Water can also damage your home’s electrical network. Be prepared to share records showing that your home’s utility system is in working order.

Health Risks

Wherever there's water damage, there's a potential for health risks to residents, especially those with existing respiratory problems. Tackle stuffy smells and mildew buildup before putting your home on the market so buyers know you’ve corrected these post-damage hazards.

Future Damage Possibilities

If you're in a water damage-prone area or haven't fully mitigated the issue, buyers will take that into account. Their offers will reflect the cost of potential damages they’ll have to take on. The sooner you report the damage and fix the problem, the better your chances of getting a solid offer.

It's illegal, in most states, and unethical to leave property damage undisclosed. Being a law-abiding citizen is the most important reason to report water damage before selling, but you should note: today's buyers are thorough. Bob Vila notes that many buyers visit with their home inspectors in tow before closing on a home.

Any detailed home inspection will uncover evidence of water damage. If a buyer discovers that you have lied or withheld information during negotiations, they may legally be able to terminate any contracts or agreements with you. The best way to sell your home is by being honest and transparent. 

If the person who bought your house later finds water damage or undergoes repairs as a result of undisclosed plumbing issues, lots of people can be held liable. You, your real estate agent and the buyer’s home inspector can be found responsible.

You’re no longer responsible for any future water damage-related issues with the home once you disclose this information in writing and are upfront with the buyer. To your knowledge, you addressed the problem, fixed it, and disclosed it in a detailed report. Potential liability cases would no longer have any legal standing. When in doubt, disclose your home’s damages!

Whether or not you live in a flood-prone area or your home has a history of water damage, every homeowner should know how to resolve and report water damage before selling a property.

You should report water damage to your insurance company right away. Reach out to a restoration company who can help to prevent further problems, remove standing water, and make sure the affected areas are dried completely. Lastly, follow up with clear pictures of the damaged items and create an inventory.

Before you sell your home:



1. Document any known damages in writing and include where they happened. 
2. Clearly state the extent of the repairs.
3. Prepare to show proof of the repairs if you go to closing.

Following these steps will ensure that you collect and provide detailed information about your home's issues and damages. You can often give potential buyers a stronger sense of security by addressing any issues upfront.

If you want to be smart and ethical about selling your home one day, tackle water damage issues as they arise. Keep an eye on your walls, ceilings, floors, and plumbing system to stay one step ahead. That way, when you have to address a problem, you can track it more accurately. 

You can also fully disclose the repair and restoration process you completed to potential buyers. You’ll set yourself up for a much easier time trying to sell your home.

• https://www.bobvila.com/slideshow/11-lies-you-can-t-tell-when-selling-your-home-52070
• https://www.homelight.com/blog/selling-a-house-with-water-damage/