What Is Unpermitted Work and How Does It Affect Home Sales?

Introduction

When you’re searching for information about unpermitted work and how it affects home sales, you’re likely facing a bit of uncertainty and stress. Perhaps you’ve recently discovered that your home has some unpermitted renovations, or you’re in the middle of trying to sell and are wondering if those improvements could be a problem. You might be asking questions like, “Will unpermitted work decrease my home’s value?” or “Can I sell my house if it has unpermitted work?”

Your main concerns are probably centered around whether the work will impact your ability to get a fair price for your home, or if it will even prevent a sale altogether. You’re looking for clarity on how to proceed—whether to address the unpermitted work before selling, or if selling to a cash buyer might be the best solution to avoid dealing with the complications that come with unpermitted changes. This blog will break down everything you need to know, including the risks, benefits, and how you can move forward if you are in this situation.

What Is Unpermitted Work and How Does It Affect Home Sales?

Understanding Unpermitted Work

Unpermitted work refers to any construction or renovation done on a property without the proper permits or inspections from local government authorities. Typically, building permits are required for any significant structural changes to a home, such as additions, electrical upgrades, plumbing, or remodeling. These permits are meant to ensure that the work meets safety codes and regulations.

Why Unpermitted Work is a Concern for Home Sellers

When it comes to selling a house, unpermitted work can be a major red flag for buyers, real estate agents, and lenders. Homes with unpermitted work often fail to meet the legal standards set by local zoning laws and building codes. In many cases, buyers might be concerned about safety, the integrity of the work, or potential fines for not following the proper procedures. Furthermore, if the work wasn’t inspected, it could result in costly repairs down the line.

According to Zillow’s real estate blog, real estate professionals often advise against purchasing homes with unpermitted work unless the seller has taken steps to rectify the situation. If you are facing unpermitted work, this is likely causing you a significant amount of stress. You may be wondering how this could impact your ability to sell quickly or for the price you were hoping for.

As a result, if you find yourself in this position, you may be thinking of selling your house to a real estate investor, as they often purchase homes in as-is condition, including homes with unpermitted work. In fact, selling your house for cash might be the quickest and easiest option for dealing with these concerns. Learn more about the advantages of selling homes with unpermitted work in How to Sell a House With Unpermitted Work in Massachusetts.

How Unpermitted Work Affects Your Home’s Value

The Financial Impact of Unpermitted Work

The biggest concern for homeowners trying to sell a property with unpermitted work is the impact on the sale price. It’s common for home buyers to ask for a price reduction when they learn about unpermitted work, as they might have to spend additional time and money to bring the property into compliance. These costs can include applying for retroactive permits, hiring contractors for inspections, or fixing issues that may arise during the inspection process.

For example, let’s say you installed a new kitchen without a permit. When the buyer’s inspector notices this, they may estimate repair costs of $5,000 to bring the kitchen up to code. In this case, you could lose that amount from your sale price, or the buyer might walk away entirely if they’re unwilling to take on the risk.

But there’s more: banks are reluctant to finance homes with unpermitted work. This is because lenders want to ensure the property meets all local building codes before approving a loan. If your home has unpermitted work, your buyer might not be able to get financing, which could stall the sale or force you to find a cash buyer who is willing to purchase the property as-is.

The Risks of Selling a House with Unpermitted Work

Legal and Compliance Risks

Selling a home with unpermitted work can expose you to significant risks, both financial and legal. Local government authorities can issue fines if unpermitted work is discovered during the sale process. In some cases, these fines can be substantial—sometimes as high as $1,000 per day depending on the jurisdiction.

If you are trying to sell your home and haven’t disclosed the unpermitted work, you could also face legal action. Sellers are generally required to disclose any known issues with the property, and failing to do so can result in lawsuits or contract cancellation. The buyer may even sue you for breach of contract if the property doesn’t meet expectations or violates local building codes. For more on disclosure laws, visit FindLaw’s real estate disclosure page.

Additionally, you could be liable for the cost of repairs if the buyer decides to take legal action. This is one reason why selling your house to an investor may be a better solution. Real estate investors typically purchase properties with unpermitted work without requiring sellers to make repairs or worry about disclosure. In fact, many investors are experienced with buying homes in any condition and can offer a quick and hassle-free sale.

Solutions to Selling Your Home with Unpermitted Work

Repair or Disclose: What Are Your Options?

One solution to dealing with unpermitted work is to repair the issues and apply for permits before listing your home. However, this can be costly and time-consuming. Depending on the scope of the unpermitted work, you might need to hire contractors, schedule inspections, and wait for approval from your local authorities. The process could take several months and could cost thousands of dollars—money that might not guarantee a return on investment.

Alternatively, you could choose to disclose the unpermitted work to potential buyers, but this can lower your chances of closing a sale. Some buyers may walk away, while others may offer much lower prices in exchange for the risk they would be taking on.

For many sellers, the fastest and least stressful option is to sell the house to a real estate investor. By working with an investor, you can avoid the lengthy repair process and the risk of fines or lawsuits. Investors will purchase your property as-is, including any unpermitted work, and typically offer cash for a quick sale. This option can be a lifesaver if you’re facing financial distress or just want to avoid the hassle of traditional home selling.

Conclusion: Why Selling to a Cash Buyer May Be Your Best Option

The Easiest Way to Sell a House with Unpermitted Work

Unpermitted work can make selling a home much more complicated, but it doesn’t have to be a deal-breaker. If you’re trying to avoid the lengthy process of making repairs or facing legal challenges, selling your house for cash to Custom Realty Solutions, LLC might be the best route for you. We purchase homes with unpermitted work in any condition and offer a fair price based on the property’s value, regardless of permits.

In many cases, selling to Custom Realty Solutions, LLC means you can avoid repair costs, lengthy negotiations, and waiting for bank approval. Plus, with a cash sale, you can close in a matter of days, providing the peace of mind and financial freedom you need.

If you’re looking for a way to sell your house quickly and avoid the complications of unpermitted work, consider working with Custom Realty Solutions, LLC. We can help you navigate the process with ease and get you the cash offer you deserve.