How Unpermitted Work Can Affect Your Sale

Welcome to another informative blog post by the Compass Team. Today, we'll be discussing the topic of unpermitted work and how it can affect the sale of your property.

Many homeowners undertake home improvement projects without obtaining the necessary permits. While this may seem like a cost-effective and hassle-free option, it can have significant consequences when it comes time to sell your property. Let's take a closer look at what unpermitted work is and why it matters.

What is unpermitted work?

Unpermitted work refers to any home improvement or renovation project that is carried out without the necessary permits from the local government. Building permits are typically required for any project that involves structural changes or alterations to the electrical, plumbing, or HVAC systems. Examples of unpermitted work can include adding a room, installing a new heating system, or even something as simple as replacing a water heater.

Why is unpermitted work a problem?

There are several reasons why unpermitted work can be a problem when it comes time to sell your property. First and foremost, unpermitted work can be a safety hazard. Without the proper permits and inspections, it's impossible to ensure that the work was done to code and that it meets safety standards.

In addition to safety concerns, unpermitted work can also create legal issues. If a buyer discovers unpermitted work after purchasing a property, they may be able to sue the seller for damages. This can result in costly legal fees and a loss of equity in the property.

Finally, unpermitted work can make it difficult to sell a property. When a property is listed for sale, the buyer's lender will typically require an appraisal. If the appraiser discovers unpermitted work, they may lower the appraised value of the property. This can make it difficult to sell the property for the desired price.

What should you do if you have unpermitted work?

If you have unpermitted work in your home, it's important to take action before listing your property for sale. The first step is to obtain the necessary permits and have the work inspected by a building inspector. If the work is found to be up to code, you can receive a Certificate of Occupancy (CO) or Certificate of Completion (CC) that shows the work was done legally.

If the work is found to be non-compliant with local building codes, you will need to make the necessary repairs or modifications to bring it up to code. This can be a costly and time-consuming process, but it's essential for ensuring the safety of your property and avoiding legal issues down the line.

In conclusion, unpermitted work can have significant consequences when it comes time to sell your property. It's important to ensure that any home improvement or renovation projects are done legally and with the necessary permits and inspections. If you have unpermitted work in your home, be sure to take action before listing your property for sale. For more information on this topic or to speak with a real estate professional, contact the Compass Team today.