There is a certain level of satisfaction that comes with taking on the project yourself. Protecting the lumber and getting the job done with both hands. But when it’s time to sell that house, if there’s been any work you’ve done or done, and it’s not officially lit by the city, things can get a little more complicated.
That said, don’t worry, you still have options. Whether you’re moving out of your Santa Cruz home or placing your Boston in your home for sale, as long as you do it the right way, you can sell your home for unmaintainable work.
What are unauthorized jobs?
Unauthorized work means renovation, repair or addition to a home that required legal permission but was carried out without it. This is as easy as deck extensions, or as easy as converting a garage into a bedroom or adding a bathroom.
You may have bought the place at a job that you have not already completed. You may have done it yourself, it’s enough to think “good enough.” In any case, if the local building department doesn’t record it, it’s technically not up to the code.
Are you thinking about selling it?
Lock the competitiveness of your next home.
Can I sell my home for work that is not permitted?
Yes, you can sell your home for work that is not permitted. There is no law that you cannot sell a home with unauthorized jobs. But there are steps, risks, and disclosures that work.
Here are the most common problems that sellers encounter:
Disclosure requirements: Legally required to talk to potential buyers about known outstanding work. Trying to hide it is not an option. Lenders’ Hesitance: If the buyer needs a mortgage, unauthorized jobs can surprise the lender. They don’t like a loose ending and they definitely don’t want to rent it to a house that could bring responsibility for the future. Evaluation Problems: Appraisers often cannot include unauthorized areas in their home evaluations. That sweet basement you built? Unless it’s legal, it deserves a jillch in their eyes. Insurance Risk: If something goes wrong with that unauthorized addition, insurance may not cover it. Something like an electric fire in your DIY attic office is completely on you.
Assess the situation and document everything
Take your entire situation completely before you do anything.
Deleting records from the city or county: Your local building department can tell you what was issued. If you don’t have that second story or a bathroom record, it’s time to start asking questions. Get a Contractor’s Evaluation: Authorized contractors can assess whether unauthorized work has been done for the code, even if they have not been inspected. If it’s solid, you have ammunition to reassure the buyer. Find a Home Inspector: A thorough home inspection can help ease the fear of the buyer later, even if you pay in advance. Think of it as researching your route before a long hike. You want to know what awaits you.
Do you modify it, allow it, sell it as is?
Once the situation gets bigger, there are several ways to proceed. None of them are painful.
1. Retrospective permission
In some jurisdictions, you can apply for a “retrospective” or “post fact” permit. If you have time to do high quality work and deal with local governments, this is often the best route.
You probably need:
Plans created by the inspection of an architect or engineer (which may involve opening walls or ceilings) to cover fees and fines
Although not always easy, retroactive permits can help you sell by reducing complications.
2. Tear it or fix it and code
In some cases, retroactive permissions are not permitted or more trouble than worth it. If the work is sloppy or dangerous, you may have no choice but to completely remove or remove the code. This costs money. Probably a lot. But it can make sales smoother and safer.
3. Sell AS-IS and disclose everything
This is the path of minimal resistance and it is legal unless you intentionally hide anything. The work will be disclosed in writing. I’ll write about it. Be positive and be as clear as possible.
If the price is correct, or if the work looks good, the buyer will still bite. However, you may limit yourself to cash buyers or investors who do not need funding and are used to fixer uppers.
Should I price a home with low work that is not permitted?
Usually, yes. Homes with unauthorized jobs tend to sell less than similar homes that are fully permitted. Appraisers will not consider unauthorized area and some buyers will not want to address the extra risks.
That being said, if the work is done well, you may still be closer to market value. Be prepared: all negotiations will probably return to the same question. “What happens if the city finds it?”
Unless you solve the problem in advance, the answer is usually that the buyer assumes the risk.
Do not skip documents
Find a Redfin real estate agent who knows how to handle this kind of thing. Clean and thorough disclosure is required. You may want to talk to a real estate lawyer, especially if you have a lot of money or are dealing with a serious violation.
Your goal is not to hide your past. It’s about selling your home honestly and avoiding line troubles.
You can sell your home for work that is not permitted
Selling your home for work that is not permitted is not a dead end. It’s a difficult road to walk. You will face more questions, more paperwork, and some costs you probably didn’t think you’d come. However, if you enter the process with your eyes open and stable hands, you can sell your home well with work that is not yet permitted.
