Floods, hail, wind, ice, and snow are all part of living in Calgary (sometimes in the span of a single day!). Damage caused by extreme weather or a natural disaster is a homeowner’s worst nightmare. Imagine if it happened while trying to sell your home. It can definitely make the process more complicated.
If you are working with a Realtor, then you already have a great deal of support and knowledge right at your fingertips. After you have confirmed that your family is safe and reported the damage to your insurance company, call your Realtor to let them know what happened. Your Realtor will need as much detail as possible about the damage in order to satisfy disclosure obligations. When selling a home, Realtors and Sellers must fully disclose major physical defects in the property. Defects include things such as:
-
Any type of water leakage,
-
Roof damage;
-
Mould;
-
Structural issues like foundation instabilities; and
-
Issues with heating, air conditioning, or plumbing systems.
Even though it will be obvious, your Realtor should also disclose any damage that has occurred to exterior areas of your home such as siding and windows.
If a natural disaster or extreme weather has caused damage to your home while it is on the market, there are a few different options for how to proceed.
1. Show your home during damage repairs
Your home insurance will likely help coordinate repairs for some or all of the damage that occurred. You can disclose the damage information to interested Buyers and allow them to tour the property while repairs are in progress.
2. Take your home off the market while repairs are underway
It may just be too much to have repair professionals and Buyers in your home at the same time. If there are extensive repairs required, you can take your home off the market until the repairs are completed.
3. Reduce the listing price to account for outstanding repairs
If you do not want to complete the repairs, you can reduce the listing price and keep the house on the market. In this scenario, it is critical that potential Buyers receive as much information as possible about the required repairs. To help justify the amount of the price reduction, you can obtain repair quotes from a few reputable companies and share this information with Buyers.
Buyers touring your area will likely be aware of major recent weather events. Even if you have remedied the damage, do not pretend that it never happened. Full disclosure about the damage AND the repairs is more likely to ease a Buyer’s worries than scare them away. Keep all your receipts and correspondence related to the repairs to show Buyers that the damage has been addressed. When disaster strikes, your Realtor is there to help you determine the best course of action for you and the successful sale of your home.