It’s vital to point out home defects to likely buyers
Selling a damp home with rotting issues in winter can be tricky, but it always pays to be honest, writes Belinda Moffat, of the Real Estate Authority.
QWe are wanting to put our home on the market in the next month or so, but I’m a little worried that it won’t be appealing, because it tends to be a little damp when the weather gets colder.
There’s also a guttering leak that has been causing some exterior rotting.
Do I have to point out these issues? Isn’t it the buyer’s responsibility to find them out when they view the property?
AI can appreciate you having concerns about putting your property on the market in winter. An open home on a wet and windy day might not seem like it will showcase your home very well to prospective buyers.
The good news is there are definitely things you can do to help put your best foot forward, even on the coldest and rainiest of days. But first, it’s important to understand what you are obliged to tell prospective buyers.
When you are selling a property, you and your real estate agent have a legal obligation to share all relevant information about the property with potential buyers, including defects.
Failing to disclose relevant information could lead to the sale falling over or, in some situations, such as where a sale has already taken place and a defect is later discovered, the buyer could take legal action.
As the homeowner, you are an important source of information for your agent and potential buyers.
You should have an open, frank and detailed discussion with any agent you’re considering working with before you sign the agency agreement about things like the condition and building compliance status of your home – and the importance of disclosing relevant information.
For example, you mentioned your property has a guttering leak that has been causing some exterior rotting. From your description, this sounds like a defect and should definitely be discussed with your real estate agent. They may suggest you consider getting the gutters replaced and the rot fixed to prevent the issue from getting worse – which would be a home improvement to highlight to potential buyers. However, the existing rot is a defect that should be proactively disclosed to any potential buyers.
In terms of dampness during the cooler months, once again, discuss this with your agent, because the severity of the issue may affect how you manage it. If, like many homes, especially older ones, your place is just tricky to keep warm in the depths of winter, that may not be a significant issue.
At the other extreme, if you get moisture running down the walls unless you run a dehumidifier 24 hours a day, that is likely to be considered a defect, which should be proactively disclosed.
A good rule of thumb is to imagine what you’d want to be told as a buyer, err on the side of being open and transparent, and always be honest if you’re asked.
Your agent should also be proactive in gathering and verifying information about the property to meet their professional conduct obligations. Real estate licensees are not expected to discover hidden problems with a property. But as real estate professionals, where it appears likely to them that an issue may exist, they cannot ignore it.
Under the Real Estate Agents Act 2008, if licensed real estate agents suspect that a property may have a hidden or underlying defect, they must either confirm with the owner that there isn’t a problem (supported by evidence or expert advice) or tell potential buyers about the risk and advise them to get their own expert advice.
Your real estate agent must have your permission as the vendor to disclose issues. If you’re unwilling to provide that
permission, under the real estate agents’ Code of Conduct that Real Estate Authority (REA) oversees, your agent is required to stop working for you. usually fewer houses up for sale in comparison to the warmer months. This narrows the home options for buyers, making it more likely that a buyer would seriously consider purchasing your home.
Less competition/inventory in your area, will make your house stand out.
Winter may also be the perfect time to emphasise your home’s most cosy features.
Create a cosy environment for your open homes. People will warm to your home if it feels welcoming. Bring out your soft decorative cushions, throw blankets to put on the couch, and light a perfumed candle and be sure to turn the heat on.
It’s entirely appropriate to show your home in the best light during open homes and viewings, so as long as you are complying with the disclosure obligations that I outlined above – it’s fine to run that dehumidifier beforehand.
While you are creating a cosy aesthetic for the inside of your home, don’t neglect the outside. Make sure the garden is tidy, lawns are mowed, and any rubbish is taken away. Keep paths and driveways swept and remove any mould or moss. You want potential buyers to see that the property is tidy and well maintained.
If you’re looking for more advice about selling your home, REA’s consumer information website, settled.govt.nz, provides detailed information on all aspects of buying and selling residential property, including your disclosure obligations and tips for open home staging.
I wish you the best of luck.
Belinda Moffat is the chief executive of the Real Estate Authority. She answers your house buying and selling questions.
For more information about the process and what to expect when working with a real estate professional – visit settled.govt.nz. Have a question for Belinda? Email homed@stuff.co.nz.