Neighbors and Fencing

Neighbors and Fencing

Ask Phyllis: a blog series of frequently asked real estate questions.

Dear Phyllis,

I have enjoyed your real estate questions and answers for years, and I now have a new situation to ask about. My neighbor to the west and I share a very old wooden fence that is falling in several areas. Initially, we agreed to split the cost of a new fence, since I did not expect to move.

However, I recently learned that I will transfer to South Carolina and sell my home. Meanwhile, my neighbor has not moved forward with rebuilding the fence, and we have not selected a design. As a result, we will likely not complete the new fence before I move. How should I address the fence issue when I sell my home?

Melissa

Dear Melissa,

Home buyers feel uncomfortable with unresolved issues. Therefore, you should address this situation before you list the home. You can take several approaches.

First, you can move quickly to build the fence, which offers the cleanest solution for buyers. Alternatively, you can speak with your neighbor and explain your move. Then you can discuss whether you will continue or end the verbal agreement.

If neither of these options works for you, I recommend that you or your neighbor get an estimate. Then draft an agreement between the two of you. Have the buyer acknowledge the estimate, so they know what the fence will look like. Your half of the bid and a small cushion in the event of overruns can be held in escrow, and escrow can disburse the funds to the people who construct the fence upon completion. Any “cushion” can then be returned to you. Have your Realtor check with the escrow company, as they can’t hold the money indefinitely.

Another option is to credit the new buyer with the amount of the fence. However, in this scenario, you won’t know for certain that the buyer will honor the agreement with your neighbor.

Best of luck to you on your sale!