Selling a home can already be a complex process, but if your home has unpermitted work, things can get even more challenging. Unpermitted work refers to renovations, additions, or any alterations to the property that were done without the proper permits or inspections from the local authorities. Whether it’s a finished basement, a garage conversion, or electrical work, selling a house with unpermitted work can create roadblocks in the sales process. However, with the right approach, selling your home is still very possible.

Here’s everything you need to know about selling a house with unpermitted work and how you can navigate this tricky situation.

1. What is Unpermitted Work?

Unpermitted work is any construction or remodeling done on your home without obtaining the necessary permits and inspections from local building authorities. Common examples include:

Room additions
Electrical and plumbing modifications
Garage conversions
Finished basements or attics
Structural changes, such as removing walls
Installing new heating or cooling systems

Unpermitted work can pose safety risks and lead to fines or penalties if discovered. Additionally, it may complicate your ability to sell your home, as many buyers and lenders prefer properties that meet all legal and safety standards.

2. Why Unpermitted Work Can Be a Problem for Buyers

When selling a home with unpermitted work, buyers may have several concerns:

Safety Issues: Unpermitted work often bypasses essential inspections that ensure it meets building codes. This raises questions about safety, especially for major projects like electrical or structural work.
Financing Problems: Most mortgage lenders require homes to have all work permitted and up to code. A buyer’s loan could be denied if the lender discovers unpermitted work during the appraisal process.
Insurance Concerns: If a buyer’s insurance company learns of the unpermitted work, they may refuse to provide coverage or increase premiums.
Liability Risks: Buyers may worry about the risk of fines, having to tear down unpermitted additions, or spending money to bring the work up to code after purchasing the home.

Because of these concerns, many buyers might be hesitant to purchase a property with unpermitted work. However, with the right steps, you can still attract buyers and successfully sell your home.

3. Your Options for Selling a Home with Unpermitted Work

When selling a home with unpermitted work, there are a few different approaches you can take:

Option 1: Disclose the Unpermitted Work

Transparency is crucial when selling a home with any kind of issue, including unpermitted work. Legally, you are required to disclose known defects or issues with the home, which includes any work done without permits.

By disclosing the unpermitted work upfront, you can avoid legal trouble down the road. Potential buyers will appreciate your honesty, and you’ll weed out buyers who aren’t willing to take on a home with these issues.

Option 2: Get the Work Permitted (If Possible)

Another option is to bring the unpermitted work up to code and get it properly permitted before listing your home. This could involve:

Hiring a contractor: You may need a licensed contractor to inspect the unpermitted work and make any necessary repairs or modifications to meet current code standards.
Scheduling inspections: Once the work is up to code, you’ll need to have it inspected and approved by local authorities to obtain the proper permits.

While this option can increase the value of your home and make it more attractive to buyers, it may be costly and time-consuming, especially for older or more extensive unpermitted work.

Option 3: Sell As-Is to a Cash Buyer

If you want to avoid the hassle of permits, repairs, and negotiations with traditional buyers, selling your home as-is to a cash buyer like Moe Buys Homes can be an excellent solution.

When you sell to Moe Buys Homes, you don’t need to worry about costly repairs or the complications of unpermitted work. We buy homes in any condition, and we make cash offers with quick closings. This eliminates the need for buyer inspections, mortgage approvals, or dealing with traditional buyers who might be turned off by unpermitted work.

4. How to Disclose Unpermitted Work to Buyers

When selling a home with unpermitted work, it’s essential to disclose the issue legally and clearly. Here’s how you can approach it:

Include it in the property disclosures: Most states require you to fill out a seller disclosure form where you must list known issues with the home, including unpermitted work.
Be upfront during negotiations: If buyers express concerns during the negotiation process, be honest and offer any documentation you have regarding the work (such as receipts or records from contractors).
Price the home accordingly: Depending on the extent of the unpermitted work, you may need to adjust your asking price to reflect the cost of repairs or permits the buyer might need to address after purchase.

5. How Unpermitted Work Affects Your Sale Price

Unpermitted work can impact your home’s sale price in several ways. If the work is minor, buyers may be willing to overlook it or address it themselves after purchasing the property. However, for more significant issues, buyers may request a lower price or ask for a credit to cover the cost of permits, repairs, or potential fines.

Pricing your home competitively and being upfront about the unpermitted work can help attract buyers who are willing to take on these challenges.

6. Selling to a Home Buying Company: The Simplest Solution

Selling a home with unpermitted work doesn’t have to be stressful. By working with a home buying company like Moe Buys Homes, you can avoid the hassle of permits, repairs, and legal complications.

At Moe Buys Homes, we specialize in purchasing homes as-is, even if they have issues like unpermitted work, boundary disputes, or structural problems. We provide fair cash offers and can close quickly, often in as little as seven days. This allows you to move on from the property without the worry of dealing with inspections, permits, or buyer negotiations.

Conclusion

While selling a home with unpermitted work can be a challenge, it’s far from impossible. By disclosing the unpermitted work, pricing your home appropriately, and considering all of your options (such as selling as-is to a cash buyer), you can successfully sell your property, even with the complications of unpermitted work.

If you’re ready to sell your home without the hassle, contact Moe Buys Homes today for a fair, no-obligation cash offer. We buy homes in any condition and can help you avoid the stress of dealing with unpermitted work during the sale process.