SF Seller Guide 2025: Disclosure Mistakes That Kill Deals (and How to Avoid Them)

Clay Gjevre
4 days ago
3 min read

by Clay Gjevre

In San Francisco’s fast-moving market, a single missing line item in your disclosure package can trigger five-figure price cuts, re-trades, or a canceled escrow. If you’re selling a home in SF, use this plain-English guide to prepare a clean, complete file that builds buyer confidence and protects your net. Disclosure Mistakes:

Why Disclosures Matter in SF

Disclosures are everything you know—or reasonably should know—about the property and the surrounding context. In a city of pre-war homes, unwarranted spaces, and complex condo/TIC rules, thin or sloppy paperwork invites delays and discounts. A thorough package shortens Days on Market and increases the odds of stronger, sometimes non-contingent, offers.

The Big 10 SF Disclosure Mistakes (and the fix)

Unpermitted Work & the 3R Report
Mistake: MLS claims don’t match the 3R (Residential Records) history.Fix: Pull the 3R early, reconcile everything, and clearly label any non-permitted areas as unwarranted; exclude from living square footage.
“As-Is” Misunderstood
Mistake: Assuming “as-is” means you can skip disclosure.Fix: “As-is” affects repairs, not disclosure duties; note prior issues, fixes, dates, and attach receipts.
Condo/TIC Paperwork Gaps
Mistake: Missing HOA budgets, minutes, reserves, insurance, or (for TICs) the TIC Agreement and % allocations.Fix: Provide a complete, current set including any special assessments under consideration.
ADUs, Bonus Rooms & Unwarranted/Illegal Space
Mistake: Counting unwarranted space as legal living area.Fix: Use accurate labels, exclude from square footage, and disclose ceiling height, egress, heat, and kitchen legality.
Neighborhood & Nuisance Items
Mistake: Omitting material facts like noise patterns or nearby construction.Fix: Share context a reasonable buyer would want—simple notes or logs build trust.
Foundation, Water Intrusion & Seismic
Mistake: Vague references to “old house” issues.Fix: Provide a real timeline (dates, repairs, receipts). Note soft-story retrofits or seismic work with permit info.
Insurance Claims & Carrier Changes
Mistake: Skipping claim history and why you switched carriers.Fix: Summarize events + attach remediation invoices; buyers and lenders look for patterns.
Repairs Without Documentation
Mistake: DIY or handyman work with no receipts or permits.Fix: State what was done, when, and by whom; disclose permit status clearly.
Tenant-Occupied or Recently Vacant Units
Mistake: Incomplete rent/tenancy history.Fix: Provide move-in/move-out dates, deposits, notices, buyouts, and estoppels when relevant.
Solar, Liens & Financed Equipment
Mistake: Surprise lease transfers or payoff requirements at closing.Fix: Disclose payment terms, transfer fees, credit checks, and attach payoff/assumption instructions.

How to Package It (Pre-Market)

Deliver before first showings. Aim for a single, organized folder with a table of contents.
Cover letter summary. One page that highlights material items, differences from the 3R, system ages, and any financed equipment.
Label everything. Use clear filenames (e.g., “3R_Report_2025-10-02.pdf”, “Roof_Invoice_2019.pdf”).
For condos/TICs. Include 12 months of minutes, current budget/reserves, master insurance, rules/regs, and any assessments in motion.

What Buyers Expect in 2025

Buyers (and their insurers/lenders) are choosier, especially around water, structure, and legality of space. The rule of thumb: if you would want to know it as a buyer, disclose it as a seller. This drives stronger terms and fewer last-minute credits—key for San Francisco home selling outcomes.