The Beautiful Custom Home that Taught an Expensive Lesson

By Kelly DeBrosse | eXp Realty | 23+ years serving Raleigh, Wake & surrounding counties

Some homes tell you exactly who lived there the moment you walk through the front door.

This was one of those homes.

The family had built their first custom home on a beautiful one-acre corner lot in an established N. Raleigh custom home neighborhood. Every decision had been made with intention. Nothing about this house was ordinary.

The circular stone driveway welcomed you to the property. Gas lanterns illuminated the entrance, the front of the home, and the backyard. A three-car garage, whole-home surround sound that extended outdoors, custom built-ins, and high-end finishes throughout reflected a family that spared no expense.

Inside, the home was just as impressive. The laundry room featured two complete sets of washers and dryers so the family could cut laundry time in half. Because a member of the household suffered from severe dust mite allergies, nearly every floor surface was hardwood, tile, or a specialty cork product rather than carpet. The children's wing had been transformed into something special, complete with custom built-ins and hand-painted murals that looked like they belonged in a storybook.

As I toured the home for the first time, I remember thinking this was going to be one of those listings that practically sold itself.

Little did I know what we were about to uncover.

We priced the home based on comparable sales within the neighborhood. On paper, it belonged with the other custom homes of similar size and quality. There was just one problem.

Every comparable sale had a four- or five-bedroom septic permit.

Our listing had a three-bedroom septic permit, even though the home clearly contained five bedrooms.

Almost immediately, buyers began asking questions. They loved the home, but they couldn't get past the permit. They worried that if they purchased it, they would someday face the very same resale challenge. In a strong buyer's market, buyers have options. They have time to compare properties, negotiate aggressively, and walk away when something creates uncertainty.

That single document changed how buyers viewed the home's value.

It wasn't that the home suddenly became less beautiful. The craftsmanship hadn't changed. The location hadn't changed. The custom finishes certainly hadn't changed.

What changed was the comparison.

Instead of comparing this property to other advertised five-bedroom custom homes, buyers began comparing it to advertised three-bedroom homes because they were already thinking about what would happen when it became their turn to sell.

As we dug deeper to understand how we had arrived at this situation, we discovered something surprising.

The family had originally contracted to build a four-bedroom or larger home. During construction, however, the property only perked for a three-bedroom septic system. Despite that change, the home itself was still built with five bedrooms and neither the Builder nor the agent disclosed this to the now owners.

As listing agents, we have a responsibility to accurately represent the number of legal bedrooms in every property we market. It's not simply a marketing decision; it's part of protecting both our clients and ourselves from future liability. Having a septic system that supports the property correctly is crucial.

Once the sellers understood how significantly the septic permit was affecting the home's marketability, they sought legal advice. Together, we developed a plan. We would reduce the asking price to reflect what the market was telling us, complete the sale if possible, and then allow the sellers to pursue any legal remedies separately.

After reducing the price, we received an offer the sellers felt comfortable accepting.

Finally, it felt like we had worked through the hardest part.

Or so I thought.

Given the level of care these homeowners had invested in every aspect of the property, I fully expected inspections and due diligence to go smoothly.

Instead, another surprise surfaced.

Years earlier, the sellers had invested approximately $50,000 in an elaborate permanent playground for their children. It wasn't a simple swing set. It had substantial footings and was designed as a permanent feature of the property. For the right family, it was an incredible selling feature.

There was only one problem.

The sellers' backyard bordered a wooded, HOA owned area, and because they thought they knew where the boundaries were no survey was sought out before installing the playset. We learned the hard way that nearly half of it extended onto neighboring HOA land.

Moving it wasn't a realistic solution.

I could feel the stress the sellers were carrying. They had already built a 2nd custom home (that’s why they were selling this first one) and were now carrying both properties. We had already worked through one unexpected issue that affected the value of their home. Now we were facing another challenge during due diligence.

Rather than tearing down the playset, we began looking for another solution.

Fortunately, we were able to obtain HOA approval for the structure to remain where it was, and we worked with the buyer to reach an agreement that allowed everyone to move forward.

Looking back over more than twenty-three years in real estate, I can only recall one other transaction involving an encroachment like this that was left in place at closing agreed on by all parties. It's certainly not something I encounter often; typically we resolve all encroachments fully prior to closing.

Not every problem has a perfect solution.

What stayed with me most from this transaction wasn't just the septic permit or the playset. It was realizing how decisions made during construction can continue affecting a homeowner years later when it's finally time to sell.

This home was every bit as beautiful as the competing properties in its neighborhood. In many ways, it offered even more. But in that particular market, buyers had choices. They weren't simply buying granite countertops, custom cabinetry, or gas lanterns. They were also buying future resale potential and they had 10s of similar properties to choose from in that market as well.

That three-bedroom septic permit changed how Buyers valued the home.

This experience reminded me that market value and marketability aren't always the same thing.

A custom home can be extraordinary. It can include every upgrade a family has ever dreamed of. But details that seem insignificant during construction—permits, approvals, surveys, and documentation—can have financial consequences years later when the home returns to the market.

It's a lesson I haven't forgotten, and one I now share whenever someone tells me they're getting ready to build their dream home.