Selling a home with deferred maintenance is possible, but it requires a well-thought-out approach. You can choose to renovate the property first or sell it in its current condition, depending on your budget, timeline, and the severity of the maintenance issues. In this article, we answer the most frequently asked questions about selling a home with maintenance problems — from your legal disclosure obligations to finding the right buyer.
What legally counts as deferred maintenance on a property?
Deferred maintenance refers to damage or wear on a property that the owner should have addressed but allowed to accumulate. Legally, it involves defects that affect the habitability, safety, or value of the home. Examples include a leaking roof, outdated electrical wiring, wood rot in window frames, or a neglected foundation.
Under Dutch law, a distinction is made between visible defects and hidden defects. Visible defects are immediately noticeable during a viewing. Hidden defects are problems that are not immediately apparent but are present at the time of sale. Examples include:
- Foundation problems caused by subsidence or wood rot
- Asbestos in walls, floors, or roof sheathing
- Concealed leaks behind walls or under floors
- Undisclosed renovations carried out without a permit
- Problems with the sewer system or drainage
This distinction matters because, as a seller, you can be held liable for hidden defects even after the transfer of ownership has taken place at the notary. Visible defects are generally considered the buyer’s risk, provided you have not actively concealed them.
Are you required to disclose deferred maintenance when selling?
Yes, as a seller you have a legal duty to disclose. This means you must inform the buyer of all known defects, even if you believe they may complicate the sale. Deliberately concealing a defect you are aware of puts you at risk of a damages claim after the transfer.
In the Netherlands, the seller’s duty to disclose takes precedence over the buyer’s duty to investigate. This means that even if a buyer does not commission a building inspection, you as the seller are still responsible for communicating known issues. This applies to defects you are aware of or could reasonably have been expected to know about.
In practice, known defects are recorded in the questionnaire that accompanies the purchase agreement. In it, you answer questions covering topics such as:
- Leaks (current or past)
- Asbestos or other hazardous materials
- Foundation problems
- Renovations and the associated permits
- Issues with installations such as the central heating boiler, electrical wiring, or sewer system
Honesty genuinely pays off here. A buyer who later discovers a hidden defect you were aware of can reverse the sale or demand compensation.
What are your options: renovate or sell as-is?
When selling a home with deferred maintenance, you have two main routes: renovate the property before selling, or sell it in its current condition. The best option for you depends on your financial capacity, the severity of the defects, and how quickly you want to sell.
Renovating before the sale
Targeted renovations can increase the sale price and make the property more attractive to a wider pool of buyers. Minor improvements such as painting, replacing an outdated boiler, or repairing a leaking roof often have a positive effect on the asking price. Be careful, however, not to invest more than you can recoup. Not every renovation yields a proportional increase in value at the point of sale.
Selling as-is
With an as-is sale, you sell the property in its current condition without any prior renovations. This appeals to investors, property developers, and renovation-minded buyers who want to do the work themselves. Your asking price will be lower, but you save time and avoid upfront costs. Make sure you communicate all known defects transparently and document them in the purchase agreement.
How does deferred maintenance affect the sale price?
Deferred maintenance puts downward pressure on the sale price, but the extent to which it does so depends heavily on the type and scale of the defects. Buyers and appraisers factor in the cost of repairs and reflect this in their offers. The more serious and extensive the defects, the greater the downward pressure on the price.
An appraiser or building surveyor estimates the repair costs and deducts them from the market value of a comparable property in good condition. On top of that, buyers often apply an additional risk premium to account for uncertainty about what else might be hidden. This means the final sale price for a property with serious deferred maintenance can come in significantly lower than you might expect based on the location or floor area alone.
That said, the impact is not always dramatic. Minor cosmetic defects — such as dated paintwork or a worn floor — carry far less weight than structural problems. A well-justified asking price that realistically accounts for repair costs will attract buyers who know what they are purchasing and are willing to pay a fair price.
What does a building inspection do in the context of a sale?
A building inspection assesses the technical condition of a property. An independent building surveyor evaluates the structure, installations, and state of maintenance, and records the findings in a report that includes an estimated cost of repairs. This report gives both you and the buyer a clear picture of the property’s actual condition.
As a seller, you can choose to commission a building inspection in advance. This offers several advantages:
- You know exactly what defects exist and can communicate them transparently
- You avoid surprises during negotiations
- You can set a realistic asking price based on the property’s actual condition
- It builds confidence among potential buyers
Buyers often commission their own inspection as well, sometimes as a conditional clause in the purchase agreement. If the inspection reveals serious defects that were not previously disclosed, the buyer may withdraw from the sale or renegotiate the price. Having your own inspection carried out in advance significantly reduces this risk.
How do you find the right buyer for a property in poor condition?
The right buyer for a home with deferred maintenance is someone who sees the property’s potential and is willing to invest in its restoration. These are typically investors, property developers, or private buyers looking for a below-market property with renovation potential.
Reaching this audience requires a targeted marketing approach. A standard listing aimed at families looking to move in straight away is less effective. More productive strategies include:
- Writing an honest and comprehensive listing description that includes the property’s condition
- Highlighting the repair costs and the potential of the property
- Using professional photos that showcase the space and its possibilities
- Advertising on platforms and within networks where investors are active
- Being open to negotiation and flexible on terms
Transparency is your greatest asset here. A buyer who knows exactly what they are purchasing is far less likely to raise issues after the transfer. That gives you, as the seller, peace of mind and makes the sales process smoother.
How Urban Homies helps you sell your property
Selling a home with deferred maintenance requires a strategy that reflects the property’s actual condition and reaches the right audience. Urban Homies guides you through every step of this process. Here is what we do for you:
- Tailored valuation: We assess the market value of your property, taking into account its maintenance condition and comparable homes in the area.
- Targeted marketing strategy: We create a listing that communicates honestly about the property’s condition while highlighting its potential to the right buyers.
- Professional presentation: With professional photography, we ensure your property looks as appealing as possible — even when deferred maintenance is present.
- Support all the way to the notary: From the initial strategy consultation to the signing at the notary and aftercare, we are with you every step of the way.
Want to find out what your property is worth and how best to sell it with expert guidance? Contact Urban Homies for a no-obligation conversation. We would be happy to help you work out the best approach for your situation.
