5 things to never tell a buyer

A buyer is looking at your home and asks a question. Be careful what you say, as it can cost you much more than you realize.

As a seller, you may find yourself at home when a buyer is looking at your home. In most cases, it's smart to leave during the showing. If you are at home and the buyer or his/her agent asks a question, tread carefully. Here are five things to never tell a buyer.

1. Where is the property line?
It's easy to point to the fence and say that's where the property line is. The correct answer to this question is, "I don't know where the exact property line is. If you want the exact location, you will need a survey."

I remember selling a property where my client's brick fence was encroaching on a 2-inch-by-2-inch part of the property next door. My buyers didn't learn of the issue until they decided to add a room to the house. They hired a surveyor who discovered the problem. It cost almost $2,000 and a considerable amount of hassle to obtain an easement (i.e., permission to use) this tiny piece of land. Part of the expense was due to having to re-record the deeds for both parties as well as obtaining a written approval from each of the lenders.

In a different case, the sellers represented that the property line was located at the fence. The fence was actually encroaching on the neighbor's property by 1 foot. The property line on that side was 220 feet long. Due to the prime location of the property, the value of the land as awarded by the court was more than $200,000.

2. Do any ______ live in this neighborhood?
If a buyer asks you a question that references race, ethnicity or religion, it is a violation of the fair-housing laws to answer the question. A better response would be to say either "I don't know" or "federal law prohibits me from discussing race, ethnicity or the religion of my neighbors. If you would like to know more about the general characteristics of this area, you can check the U.S. Census data."

3. Is this a safe neighborhood?
While you might be tempted to say, "We have never had any problems," that's not a good idea. You may not have had any problems, but what about the neighbor on the next block who had her car stolen or who was burglarized? You may not be aware of the problems, but your representation of the safety of the neighborhood could come back to haunt you.

A better response is to say, "If you are concerned, please check the crime statistics for this area either online or at the local police department." Some resources include NeighborhoodScout or SpotCrime. ...CONTINUED

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