As a moral responsibility, it is important that you disclose any defects that might be present in your home. It is in the best interest of both the buyer and the seller that the entire process of the home exchanging hands goes off smoothly. If as a seller, you happen to conceal any major defects in your house, the buyer has the right to take legal action against you. This will not only sour relation between you and the buyer but also create further headaches and added costs in terms of legal expenses.
Not disclosing defects in your house will also lessen your reputation as a trustworthy seller in the market. Most home buyers will conduct their own inspections of your home, usually with the help of a professional home inspector. If the defects come to light during such an inspection, word will spread quickly about how you did not give an honest picture of the property.