Why Every Lakes Region Agent Should Visit Town Hall Before Listing

KEY TAKEAWAYS

• In New Hampshire, septic systems determine legal bedroom count, not closet presence or square footage like in neighboring Massachusetts
• Town files contain critical property history that can reveal permitting issues, neighbor disputes, and system limitations affecting marketability
• A bedroom count error can expose buyers to significant financial risk and sellers to legal liability in normalized market conditions

THE MASSACHUSETTS DIFFERENCE

One of the most misunderstood aspects of New Hampshire real estate comes down to what defines a bedroom. Margot Skelley learned this lesson early in her career, and it shapes how she approaches every listing in the Lakes Region today.

In Massachusetts, a bedroom is defined by the presence of a closet. In New Hampshire, it’s defined by what’s in the ground septic system wise. If a property is serviced by a septic system, that system determines the maximum number of bedrooms the home can legally support. Properties on town water and sewer don’t face this limitation, but across the Lakes Region, septic systems are the norm.

“One of the golden rules up here in New Hampshire is that bathrooms and bedrooms are defined by septic size,” Margot explains. For waterfront properties especially, where septic systems must meet strict state and local requirements due to lake protection standards, this distinction becomes critical.

THE TOWN HALL RITUAL

Margot was taught early in her career that the first stop after taking a listing should be the town hall to review the property file. Sometimes that file contains nothing. Other times, it tells an entirely different story than what appears on the MLS.

She recalls one particular visit when the town clerk rolled her eyes and returned with a rolling cart stacked with three or four boxes. The property owners had been through multiple disputes with neighbors over the years, and every battle had left a paper trail.

For most properties, the file contains building permits, septic system records, variance applications, and correspondence about improvements or violations. For waterfront homes around Lake Winnipesaukee, those files might also include dock permits, shoreline protection orders, and water quality compliance documentation.

WHERE THE MISTAKE HAPPENED

Early in her career, Margot made an assumption that many agents make. She focused her town hall research primarily on waterfront properties, where the stakes seemed highest and the regulations most complex.

Then she listed a home that she advertised as a four bedroom property. The house had four rooms that looked like bedrooms. But the septic system in the ground was only permitted for three bedrooms.

“That is a mistake,” Margot says now. “One should always go to the town regardless if it’s waterfront or not.”

THE MARKET SHIFT THAT CHANGED EVERYTHING

During the pandemic boom years, when properties sold in days and buyers waived contingencies to compete, a bedroom count discrepancy might have been absorbed into the frenzy. Buyers were less likely to push back on details when inventory was scarce.

But the market has normalized since then. Margot Skelley represents luxury waterfront homes in Lake Winnipesaukee communities like Wolfeboro, Tuftonboro, and New Durham, where buyers now conduct thorough due diligence and expect accuracy in every listing detail.

When the buyer’s agent called to ask about the bedroom count, Margot was direct. She didn’t recall checking the septic permit, and there wasn’t much that could be done at that point to change what had already been advertised.

A buyer who purchases a home advertised as a four bedroom property only to discover it’s legally a three bedroom faces reduced resale value, potentially invalidated financing, and possible recourse against the listing agent.

THE DUE DILIGENCE STANDARD

Margot Skelley specializes in high-end lakefront estates, seasonal properties, and vacation homes with water access and dock rights. In that specialized market, accuracy isn’t optional. It’s the foundation of trust.

Her approach now includes a town hall visit for every listing, regardless of location or property type. That file might contain nothing more than an original building permit. Or it might reveal a neighbor dispute, an unpermitted addition, a failed septic inspection, or a variance that affects future improvements.

“The lesson here is always check the town file on every single property that you have for due diligence,” Margot says.

For sellers, this research protects against surprises during the buyer’s inspection period. For buyers, it ensures the property they’re purchasing matches the description they were given. Margot Skelley leverages nine years of experience with New Hampshire’s top performing real estate team to guide clients through Lakes Region transactions, and that guidance starts with the basics: knowing exactly what’s in the ground and on the record before the listing goes live.

FREQUENTLY ASKED QUESTIONS

How does New Hampshire determine legal bedroom count?

In New Hampshire, bedroom count is determined by the capacity of the septic system servicing the property, not by the number of rooms with closets. A home might have four rooms that function as bedrooms, but if the septic system is only permitted for three bedrooms, that’s the legal maximum. Properties on town sewer don’t face this limitation.

What information is typically found in a town property file?

Town property files contain building permits, septic system records, variance applications, inspection reports, and correspondence about improvements or code violations. For waterfront properties around Lake Winnipesaukee, files may also include dock permits, shoreline protection documentation, and water quality compliance records. Some files contain nothing, while others span multiple boxes.

What happens if a property is listed with an incorrect bedroom count?

An incorrect bedroom count can expose buyers to reduced resale value, financing complications, and legal recourse against the seller or listing agent. In today’s normalized market, buyers conduct thorough due diligence and expect accuracy. A bedroom count error discovered after closing may be grounds for a claim if the buyer can demonstrate they relied on the listing information..