Selling a House with Unpermitted Work In California

Selling a House with Unpermitted Work In California

Imagine this: you’re excited as you prepare to put your house on the market. It used to be your ideal home, but now you’re ready for a change. You highlight the features, certain that you’ll fetch a fantastic price for it:

• An extended deck where you spent plenty of afternoons reading.
• A game room in the basement with a working bathroom.
• Oh, and also that sunroom you were enjoying.

Maybe your home came with these things when you bought it. But now, looking at the plans, those upgrades seem missing! It’s unclear if the old owners got permits for them. You may find unpermitted work when selling your home!

What’s next?

To assist you, we’ve created a guide on selling a house with unpermitted work and your options.

What Constitutes Unpermitted Work?

Unpermitted work is simply home improvements done without obtaining the necessary permits from government entities.
You may think this is just a trivial paperwork issue, but that is not how permits work.

What are Construction Permits and What is Their Purpose?

A building permit, a legal document issued by local building authorities, lets you start construction. It makes sure your project meets safety standards, preventing accidents like building collapse or fires. If you’re planning home improvements, budget around $400 to $2,300 for permits.

Permits shield homeowners from poor craftsmanship by contractors, keeping you safe. Inspectors check work to ensure it follows codes, safeguarding lives. You wouldn’t trust an unskilled worker with your electrical system, right?

Still curious?

Why Do Homeowners Intentionally Skip Permits?

Permits Can Add a Substantial Cost to the Project

The cost of permits are usually based on the scale of the alteration. The bigger the work, the more expensive the permit, so many homeowners choose to do away with it because they’d rather be spending money on the actual work.

Permits Can Cause Property Taxes to Go Up

Home improvements like adding on a wing, completing a basement home theater, or expanding a deck can boost its worth. Consequently, this uptick in worth may lead to a rise in property taxes too.
Hence, it may be tempting to skip getting a building permit to avoid the town recording these improvements, keeping the assessed real estate value steady.

Permits are a Hassle to Get

Sometimes getting permits involves multiple trips to the city’s building department, and this hassle can discourage homeowners from going through the proper channels.

Permits Take a While to Obtain, Causing Delays

When applying for permits, you may need to provide engineering blueprints for the local board to assess. This assessment can take time, and sometimes adjustments are necessary. These changes will undergo another review, potentially prolonging the project’s commencement.

Skipping Permits Can Have Future Repercussions

Many homeowners believe they can save money by skipping permits, or they inherit unpermitted work from previous owners.
But even if you plan to keep the property long-term after unpermitted work, it could still cause issues later on. You may unexpectedly need to sell due to external factors.
When selling, buyers often check permit history. They can also order inspections. If they discover problems or code violations from previous unpermitted work, you’ll deal with the fallout from your choices.

How Do You Apply for a Building Permit?

Permit requirements vary from state to state, and the only way for you to find out whether your remodeling project will require permits is to get in touch with the local building permit office or check out their website.

Home Improvements that Require Proper Permits

Generally, home improvements that involve changing something in the structural, mechanical, electrical, and plumbing systems of a house need a permit. These include:

• Demolition
• Addition of a shed
• Home expansions – additional wing, deck, or patio
• Fences over a certain height, usually six feet
• New electrical wirings or upgrading to a higher amperage
• Changes in the ventilation, heating, and air conditioning systems
• Additional bathroom or bathroom remodeling

Still, there are other projects that may seem like minor work, but they would still require permits:

• Adding partition walls
• Replacing windows and doors
• Relocating plumbing fixtures
• Removing a tree in your yard

Like most homeowners, it’s tough to know what fixes need permission. If you’re planning DIY renovations, it’s best to reach out to the local building authority.

Typical basic repairs and remodeling like minor electric fixes, painting, carpet swapping, driveway repaving, hardwood floor fitting, carpeting, and cabinet swaps usually don’t need permits.

Alternatively, you can hire a contractor for the job. Just ensure they’re a licensed home improvement contractor. Some contractors lack licenses, so hiring a registered one reduces the risk of shoddy work. Plus, they often handle permits for a fee, sparing you the permit paperwork hassle.

Dangers of Unpermitted Improvements

Since there is no one to check the quality of work, you can’t be sure if it complies with local building codes.

Unpermitted work presents dangers such as:

• Faulty electrical systems installation – fire or electrocution
• Incorrect plumbing work – burst pipes or leaks, which can provide an environment conducive to mold growth
• Improper roof installation – the roof may be blown away or may have leaks
• Inadequate carpentry work – structural collapse

Furthermore, damages arising from faulty unpermitted work won’t be covered by your home insurance. To avoid flirting with danger and literally playing with fire, it is better to get permits before starting anything.

Can You Sell Your House with Unpermitted Work In California?

Yes, you can sell your house with unpermitted work! There are two options open to you: deal with the unpermitted work yourself by getting a new permit and redoing the work or sell as is and let the buyer fix it themselves.

Option #1: Obtain Building Permits and
Redo the Work Before Selling

Many home buyers depend on bank loans to buy homes, and often their loan approval relies on the property’s condition. If buyers buy a house with unpermitted work, their lender can ask for the loan back. To avoid this, mortgage companies arrange a home inspection. If the inspector finds faulty repairs from unpermitted work, you must fix it.

To avoid this trouble, you can schedule the inspection yourself. A home inspection costs $250-$600 and the report tell you current issues and solutions. If the unpermitted work is safe, you can ask the government for a retroactive permit. Otherwise, redo the work. Contact them to confirm. Then, find reliable contractors for renovation estimates and timelines to plan for selling your house. Fixing everything could raise your home’s value. Calculate how much you’ll get back from repairs.

If this seems too much work, then you can just…

Option #2: Sell the House As-Is

Sell the property in its current condition to avoid the hassle of inspections, permits, and finding qualified contractors.

For a quick sale, consider selling to cash buyers like house flippers and companies that buy houses for cash. They seek out problem properties, including those with unpermitted work, to buy below market value. They’ll handle repairs and either flip the property or rent it out.

The cost of repairs is included in their cash offer, so while you may sell for less, you save time and effort. Cash buyers can close quickly, often within a week, as they don’t need mortgage approval.

Cash buyers have the funds to buy your property and a skilled crew ready for renovations. Plus, they cover all closing costs.

How to Sell a House with Unpermitted Work

Selling a property with unpermitted work can be managed by a real estate agent. However, this approach appeals mainly to traditional buyers. We’ll go over the obstacles involved and explain why it’s typical to sell directly to a cash buyer when dealing with such properties.

Selling through a Real Estate Agent In California

You may face some obstacles selling the old-fashioned way with real estate agents. Many buyers prefer homes they can move into right away without needing repairs, so selling as-is can be tougher.
As a result, agents in your area may ask you to make repairs so they can prepare the home for sale and host open houses, or they may suggest listing below market value. Once the sale is done, you’ll have to cover their fees and all the other costs of selling a house.

Selling to a Cash Home Buyer or a Real Estate Investor

Selling to a cash buyer means you receive cash for your home with minimal property updates needed. You won’t need to fix unpermitted work—it’s the buyer’s job. Plus, no agent fees or closing costs, saving you money on repairs and giving you quick cash for your home.

Things to Consider: Selling a House with
Unpermitted Work In California

See if You Can Apply for Retroactive Permits

Disclosure is Paramount

Check if the Previous Owner Can be Responsible for Part of the Renovation Cost

Key Takeaways: Selling a House with
Unpermitted Work In California

The Easiest Way To Sell Your House Fast In California

You’re in the driver’s seat when you accept our cash offer for your house. We make the process simple, fast, and easy to follow when working with us. You have no obligation to accept our cash offer for your home when contacting us for a fair cash offer for your home. No matter the reason you want to sell your house, we want to buy your home as is. Remember that you get many benefits that include no real estate agent commissions, no cleaning, no improvements, and no stress. Our cash offer for your as-is house assures you of fast cash payment at closing with a reputable Title company. You can count on our company to give you a fair cash offer for your home! If you’re still thinking, “I need to sell my house fast”, calling us could be your best decision all day. 🙂