Selling a House with Unpermitted Work: Navigate Your Options
Making upgrades that increase home value can be a great way to attract buyers when it’s time to sell. While you might think a renovation is as simple as doing (or hiring out) the needed work, some projects require a permit before they can happen. Selling a house without the proper permits could affect its marketability, as well as a buyer’s ability to finance their purchase.
Even if the unpermitted work was done before you lived there, not disclosing it to buyers could mean possible legal trouble if they discover it after the fact. Before you get too alarmed, keep in mind that unpermitted work is fairly common, and there are things you can do to resolve it.
We talked to real estate agents and translated the legalese from real estate attorneys to give you some of the best options when it comes to selling a house with unpermitted work.
Can you sell a house with unpermitted work?
Yes, you can sell a house with unpermitted work, and you are required to disclose to buyers any known unpermitted work done on your house, even if it was done by previous owners. Unpermitted work is anything you do to your house that would normally require a permit from your local city building department and in which a permit was not obtained. Requirements vary by county and state but can include improvements like adding a room, replacing windows, or building a garage.
Even some little projects you can knock out in a weekend could require a permit, explains Silicon Valley-based real estate attorney David Roberson, who’s personally been involved with hundreds of real estate transactions. “There are very few items that you can construct without legally being required to get a permit,” he says.
Projects like paint, floor installation, and minor electrical repairs probably won’t need a permit, but if you want to add a fence, window, or other major improvement to your home, there’s a good chance you will need one.
For many homeowners, this small detail slips through the cracks and then becomes a problem when they want to put their house on the market.
“I would say out of 10 homes at random, at least four of them would have some form of unpermitted work, 40% to 50%,” says Shawn Engel, a top Denver-area real estate agent. “It could be simple stuff like a deck modification or gutters, all the way up to basement finish.”
