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

Water damage is no joke, unfortunately. Insidious moisture can weasel its way into your walls and floors, causing rot, hazards, and health concerns. The faster you identify the issue, the better. Small problems are much less expensive to fix. 

How do you even know you have a problem? Many times, there won’t be something obvious like a raging torrent of water through the living room. Look for these more subtle signs:

• Hearing dripping or trickling water
• Unpleasant odors
• Bubbling or peeling paint
• Stains on the walls
• Warped "wood floor planks"
• "Loose tiles"
• Cracked cement
• A higher than usual water bill

If you’ve spotted one or more of these signals, then it’s time to address the issue before it becomes a major (and expensive) problem. 

Thankfully, there are plenty of reputable companies available that specialize in this very problem. Make sure the company you select has great references and reviews and holds the appropriate licenses. Your home is your castle, so you deserve only the highest quality service. 

Depending on the type of moisture intrusion, it may be best to seek more than one opinion, especially if the damage is severe. Consult your homeowner's insurance policy.

The Arizona Department of Insurance recommends that your purchase a separate flood policy through the National Flood Insurance Program at floodsmart.gov, so be sure to review those guidelines before filing a claim.



Home repairs and dealing with contractors can be stressful and exhausting, especially for busy families. Taking steps to solve the problem for good will vastly elevate your mood & prevent additional problems from occurring in the future.

Once you’ve determined the cause of the water damage and know what it will take to fix it, it’s best to proceed as quickly as possible before the problem can get any worse. All moisture needs to be removed, the source of the leak needs to be identified and sealed, and you may need to replace the flooring, drywall, and home decor.

For catastrophic damage, it might be necessary to hire a structural engineer to ensure any damage to the foundation can be rectified. It’s also a smart move to fully document everything, every step you take, from start to finish. Keep all of your related documents, emails, and receipts organized. You may be asked to present them to a potential home buyer at a later date.

If your water damage was caused by a weird weather event, consider investing time and money in some waterproofing upgrades. These will protect your home and your belongings and will boost the value when it comes time to sell. 

Realtor.com notes that there are several things you can do to minimize or prevent future issues:

• Clean and extend your rain gutters
• Seal all concrete, gaps, and cracks
• Have your roof inspected and resealed
• Add weatherstrips to all windows and doors
• Use waterproof paint
• Install exterior French drains, as noted by Bobvila.com

Since homeowners are required to report water damage when selling, it’s best to just be upfront about your home’s history. If you quickly addressed the issue, had it repaired professionally, and have taken steps to prevent another occurrence, then it shouldn’t dramatically affect your asking price.

Buyers also have to take responsibility and do their due diligence before committing to a purchase. Arizona’s own Department of Real Estate gives potential homeowners a crucial list of items to research about a house before making a decision.



Both sellers and buyers should have a professional property appraisal performed by third parties before a sale is confirmed. Depending on the other properties available in your neighborhood, your home could be quite valuable regardless of past damage. 

Unfortunately, water damage can happen to anyone, and it’s vital to get these problems solved as quickly as possible before they get worse. Once you’ve mitigated the issues, honesty is always the best policy, and the laws are clear. However, reporting this kind of damage and proving you took the steps to prevent future occurrences will help you get the maximum value for your home.