Unpermitted Work: A Tutorial for Home Sellers

What You Need to Know About Unpermitted WorkPermits are required for a variety of home construction projects. Many communities require permits for room additions, major plumbing installations, major electrical installations and new roof work.

Unpermitted work can be a source of frustration for homeowners. If you discover unpermitted work, it's important to know how it affects your home's value and what you can do to fix the problem.

Why Are Permits Necessary?

Permits alert your local building officials that work is being done on your home. Permits enable those officials to to oversee construction and ensure that the work is done to code. In this way, permits ensure that home construction is done safely and correctly. Without a permit, there is no way to know that work done on a home is safe for the occupants.

How Is Unpermitted Work Discovered?

Usually unpermitted work is discovered when the homeowner goes to pull another permit on the home. For example, a homeowner may decide to install a hot tub in the master bathroom at home. Upon going to the local building codes agency, the homeowner may discover that there is no record of a second bathroom in the house. This means the second bathroom was added after the house was constructed and the work was performed without a permit.

Can Unpermitted Work Impact Your Home's Value?

Unpermitted work must be disclosed at the time of the sale, and, yes, it can impact your home's value. Home buyers are often reluctant to purchase a property with unpermitted construction, because it is hard to insure and costly to correct the problem. In addition, many mortgage lenders will not allow homeowners to purchase properties with unpermitted construction. All of this trouble means that most home buyers who are willing to purchase a property with unpermitted work will only do so for a reduced price.

What Should You Do If You Want to Sell a Home With Unpermitted Construction?

If you want to sell a home without proper permits, you'll be faced with three choices. The way you decide to proceed will depend on your budget, how fast you need to sell your home and how much work you want to put into your property.

Choice 1: Sell the Property As-Is

Selling the property as-is will usually depend on finding a cash buyer. This can be hard in markets where the buyer pool is already small. In large urban areas, it's often easier to find a willing buyer.

Usually, selling the property as-is will involve waiting longer to find a buyer, and going through a lengthy negotiation process. Work with a real estate agent to ensure that the unpermitted work is properly disclosed and that you get the most for your home during the sale process.

Choice 2: Get a Permit Retroactively

Getting a retroactive permit can be costly. In addition to the cost of the permit itself, many (if not all) retroactive permits will involve some demolition of the walls to reveal plumbing, electrical work, structural work and other details of a construction project.

If it is discovered that the work done was not performed to code, it may need to be replaced. Getting a permit retroactively can be time consuming, but for many home sellers, retroactive permitting is worth the cost. Often a home with unpermitted construction will be steeply discounted, even more so than the cost to bring the home up to code.

Choice 3: Remove the Unpermitted Work

Some unpermitted construction is easiest to remove. To find out the cost to remove unpermitted work from your home, contact an experienced contractor in your area. He or she can give you a quote for demolition including how much it will cost to cut tear down, remove and dispose of materials.

How Much Do Permits Cost?

If your home has unpermitted construction and you'd like to sell, the first step to take is to hire an experienced Frenchmans Reserve real estate agent. Your real estate professional can help you decide how to proceed with your sale. If you need to disclose your unpermitted work, the real estate agent can help with the process. To get started, contact a real estate professional in your area today.

Dylan Snyder is a seasoned real estate professional serving the Jupiter real estate market, Palm Beach real estate market, Palm Beach Gardens real estate market, North Palm Beach real estate market, and the surrouding Palm Beach County area. Along with being a top producer in Jupiter real estate, Dylan's professionalism and expertise in luxury and waterfront real estate sets him and his team of real estate experts apart from the competition. For more information on Jupiter and Palm Beach real estate for sale, contact Dylan at (561) 951-9301.

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