If you’re in the process of selling a home, be mindful of laws covering the issue of disclosure. While they vary from state to state, there are federal laws as well, the most notable of which is regarding lead-based paint. The best thing to do if you’re unsure what to disclose is to consult a real estate attorney who knows your state’s disclosure laws.
The general rule of thumb is that anything that lowers the perceived value of the property or anything that would affect the buyer's decision to purchase or the price and terms the buyer offers should be disclosed. Some tips: Answer all questions to the best of your ability. Don’t sweat the small stuff, but make sure you disclose everything that you’d want disclosed to you if you were the buyer.