Listing Part 9: Material Facts

Part 9 of 12

A material fact is any fact about the property that would impact a reasonable buyers decision to purchase your home. While that seems pretty straight forward, it can get complicated really quickly, and without a great understanding of the term and what defines a material fact, potential sellers and their agent could end up with quite a mess!

Some materials facts about the home may simply be structural defects. A leaking roof or defective mechanical systems would certainly fall into this category. Additional facts about the property like zoning issues, restrictive covenants and private roads are concerns for any buyer to consider. 

Additionally facts about the buyer (YES even the buyers have to consider material facts) or seller being able to complete the transaction are important material facts. If the home is in foreclosure, or the buyer fails to qualify for a loan (lost job, lost income) there is a chance the deal can’t close, and the other party must be informed. 

WIth normal and routine inspections throughout the process, material facts may be discovered. If a buyers inspector discovers a failing foundation pier, that becomes a material fact that must be disclosed for future buyers. Once its discovered, it must be disclosed to the other side. 

As a licensed agent, if I know I must disclose, with no exceptions. I can’t claim “no representation”. There is a local neighborhood in the Albemarle region, that has had some legal issues with the private roads in the subdivision. I’ve listed homes in that neighborhood and because I know the issues with the roads, I have to disclose that info to all potential buyers and their agents. Its a big deal and has caused buyers to walk away from great homes, but I simply can’t hide that fact and hope buyers don’t discover it. 

If you like the videos, blog post and material I cover, please help me by sharing them with your friends who may need advice. There are many more over on the web page and YouTube channel, and I’m pretty active on social media. I’ve also released a new series called “Real Talk” where I am breaking down some current trends in the market. Those are released solely on my social media channels….Check them out there. Until next time….WELCOME HOME!

Chris Whitehurst

Berkshire Hathaway-RW Towne 

252 312 2263