Are you selling a house with unpermitted work, and you need guidance? Did you forget to obtain permits before you started your project? Are you concerned about the additional costs associated with permits and hiring contractors?
If this sounds like you and you need help with the following steps, then you came to the right place. It may seem tempting to renovate your home without the proper permits to cut costs, but that may not be in your best interest.
If you need more information on selling your home, we’ve got you covered. In this brief article, we will go over selling a home with unpermitted work and who you can contact for more information.
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What are permits?
Your local government has permits set in place before you can do any renovations that affect the plumbing, gas, electrical, or sanitization systems. These permits are in place to ensure you have the proper approval you need before starting your work.
Do I need a permit?
If you plan on doing any work that isn’t small maintenance work, you will need a permit. These permits ensure that your projects comply with your local agencies’ zoning, construction, and land use rules. Obtaining these permits ensures that your project runs smoothly and that everyone involved is safe.
When do I need permits?
If you are selling a house with unpermitted work, you will need to obtain a permit to complete the job.
Changing your home’s original mechanical systems or structure requires a permit, so you will need to get one before starting the repairs. Permit requirements vary from region to region, so make sure that you contact your local building department for more information.
Where to get building permits
If you plan to complete the work on your own, you will need to obtain a permit before you can start. If you do not want to get the permit on your own, you can hire a contractor to complete the renovations.
The contractor will handle getting the proper building permits on your behalf. If you hire a contractor, they will charge you for those additional permitting costs.
When you choose your contractor, make sure that they have the proper licensing. If the work you need to be completed includes any gas lines, you will need to reach out to a licensed professional to make sure the job gets done correctly.
Building permit timeline
The amount of time needed to get the permits you need depends on a few factors. For example, your timeline can depend on the local guidelines. You can expect to take the permitting process to take between four to six weeks to complete.
I can’t get a building permit
Although it is still possible for you to complete your renovations without a permit, it may not be in your best interest to do so. There are a few issues that may come up if you complete the renovations without the proper permits.
For example, if you do the work on your own, put the house on the market, and a potential buyer’s inspector finds faulty repairs, you may have to go back to repair those damages. Not only will you need to repair the damages out of pocket, but you will also need to obtain the proper licenses required to complete those renovations correctly.
If your repairs cause a fire, plumbing issues, or a collapse, your homeowners’ policy may not cover those damages if you completed the work without a permit.
It is also imperative to know that if you are selling a house without a building permit and there are undisclosed damages, the new homebuyer may sue you. Selling a home with unpermitted work can come with severe implications, so if you decide to sell the house in that condition, it is best for you to disclose those damages.
As mentioned earlier, the permitting requirements vary amongst several different local agencies. It is always best to reach out to your local governing body to ensure that you have the proper permits before doing any work.
Home renovations that require permits:
- Adding electrical circuits
- Installing fences over a certain height
- Home expansions
- Any structural changes
If your home needs any of these things done to make the home safer, you will need to get a permit. Other repairs may seem like minor maintenance work, but certain regions require you to have a permit.
Smaller projects that may need a permit:
- Moving a sink
- Removing a tree
- Adding walls
- Replacing windows
- Replacing doors
As stated earlier, make sure that you check in with your local agencies to see what does and does not need a permit.
If you want to sell your home in its condition, you should always check in with local real estate agents. They may have dealt with a house with similar issues and can point you in the right direction.
Options for unpermitted work
There are a few viable options if you want to remedy your situation with these repairs. If you plan to repair the damages, you will want to make sure that you consider all the costs.
It will be in your best interest to recruit a contractor to inspect the location and give you an estimate of how much you will have to pay.
If you plan on selling your home within a specific timeframe, you will make sure that you receive a reasonable estimate of how long the repairs will take. If you find that the repairs are too much, you have the option to sell your home as it is.
Selling a house with unpermitted work
If you decide to sell your home the traditional way, there may be a few problems that you can run into. For example, many homebuyers are not interested in buying homes that have unpermitted work.
Also, if a homebuyer has an FHA, VA, or USDA loan, the home may not meet the standards set out by these government entities.
Selling a house with unpermitted work may be an attractive option for real estate investors.
If your price tag is the right amount, they may want to take the house off your hands. These real estate investors may have a portfolio in flipping houses, and they use your property to make a profit.
If the unpermitted work proves to be too much of a challenge or is too expensive, some investors may not want to take the deal. If you offer the home at a lower price tag, an investor may purchase the home, but you will be left with a small cash offer.
Alternative to traditional selling
If the two above options do not fit what you want, you have the opportunity to sell your home to a reputable iBuyer. These companies offer you an all-cash offer on your home, regardless of the unpermitted work completed. They will inspect your home and make you an offer that may be better than a real estate investor who wants to flip the property.
What is an iBuyer?
An iBuyer is an instant buyer who uses big data to create a competitive all-cash offer. These companies use cutting-edge technology to obtain market information of the homes recently sold in your area.
They also combine that information with the information you input about the home’s condition to generate an offer.
Using an iBuyer is the fastest and most convenient way to sell your home compared to the traditional home buying process. For example, when you sell your home traditionally, it can take months before you reach closure, whereas, with an iBuyer, you can close within a matter of days.
How to sell to an iBuyer
There are a few easy steps that you can take to sell your home to an iBuyer. Once you locate the company you want to work with and confirm that they work with your market area, you can start the home selling process immediately.
Step 1: Request an offer
You will first need to submit your information online to receive an offer. The request is 100% free, and you are not obligated to take the offer. If your property meets the iBuyer’s criteria, they will get the offer back to you within 24 to 48 hours.
Step 2: Accept or decline
Once you receive the offer from the iBuyer, you have about five days to make your decision. You have this allotted time to review the request, which outlines the breakdown of your home value. The offer will also include fees, additional costs, and your projected net proceeds before the final inspection.
Step 3: Schedule the home inspection
If you accept the offer, you will need to schedule a home inspection. You do not need to pay for the inspection. You have the option to schedule the inspection at a time that works best for you.
The purpose of the inspection is to make sure that the information you input in your initial request matches the home’s actual condition.
If there are any repairs needed, the iBuyer will deduct that amount from your estimated proceeds. Once you agree to these repairs, the iBuyer will handle the repairs after you move out.
Step 4: Choose your closing date
Once you finish any repair discussions, you can select the closing date. Most iBuyers give you a range of time, most likely between 14 days to 60 days, to close on your home sale. After closing, you receive your payment within days.
Why sell to an iBuyer?
As mentioned earlier, many clients prefer to sell their house to an iBuyer because of how quick the process is. They also enjoy that the iBuyer takes full responsibility for the home.
This means that you do not have to worry about showing or staging the home for potential buyers. The iBuyer company will handle marketing and showing the house on your behalf.
How to choose an iBuyer
Before you just choose any iBuyer, you will want to make sure you look into their experience in the market. You can reach out to the company to learn more about how many customers they have served and how long they have been open.
It is crucial that you check out the iBuyer’s reviews. Are their reviews balanced? What are some of the concerns customers mentioned?
Make sure that you not only review the good reviews but that you check out any negative reviews that have constructive feedback. It is also good to look into how the company responds to these concerns.
Do I need a realtor?
When you sell to an iBuyer, you do not need a real estate agent. You will deal directly with the iBuyer company, and you will have an assigned home advisor who will walk you through the entire process. If you have any questions or concerns about anything, you can reach out to the home advisor at any time.
Sell your home as-is today!
If you are selling a house with unpermitted work, you may feel like you have to pay out of pocket for all the repairs before anyone will consider buying your home.
You may even think that you will have to sell your house to a real estate investor at a low rate. You have the opportunity to do one of those two options, or you can partner with a reputable iBuyer who can take care of all of that for you.
If you are ready to submit your request for an offer, submit your address now. We are ready to give you an all-cash offer for your house with unpermitted work.