Unpermitted additions are a fairly common, and slightly alarming, hiccup when it comes to buying a home. If you\u2019ve encountered one in your home search, you might be wondering what your next steps should be. We\u2019ve talked to an expert real estate agent and home inspectors to better understand what an unpermitted addition is and what it means for homebuyers. Let\u2019s dive in.<\/p>\n
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\n <\/div>\n \n Find A Buyer's Agent To Navigate Buying a Home With Unpermitted Additions<\/h3>\n
If you are considering buying a home that has unpermitted additions, an expert buyer’s agent can help you navigate the risks to protect both yourself and your budget.<\/p>\n \n
What is an unpermitted addition?<\/h2>\n
Unpermitted additions<\/a> include any form of remodel or renovation on a home where the owners did not obtain the proper permits from the city\u2019s building department, even though a permit was required to begin work.<\/p>\n Little projects like painting<\/a> or updating flooring<\/a> don\u2019t require permits, but most larger-scale projects do.<\/p>\n A wide range of home features could be considered unpermitted additions. Large-scale remodels, like adding a bathroom<\/a> or another bedroom<\/a>, are examples of projects that could be unpermitted additions if the owners completed this work without obtaining permits. As a general rule, any project that makes a change to the electrical and plumbing systems or the structure of the home needs a permit.<\/p>\n However, smaller projects like replacing gutters<\/a> or adding a fence<\/a> could also be considered unpermitted additions if your area\u2019s zoning or building boards require owners to acquire a permit before beginning construction.<\/p>\n \u201cIt can be as little a thing as someone building a barbecue area in the backyard, to a full room addition,\u201d says Edward Kaminsky<\/a>, a top real estate agent who sells 66% more single-family homes than the average agent in Manhattan Beach, California<\/a>.<\/p>\n \u201cI have seen numerous unpermitted additions,\u201d added Mike Powell<\/a>, P.E., CPI, a home inspector and structural engineer with the Tampa Bay-based Red Flag Home Inspection, LLC.<\/p>\n In some areas, unpermitted work is a bigger deal than in others. Homes built in earthquake zones, or in areas where hurricanes are common, likely have to conform to higher local building code standards to ensure that they can withstand natural disasters.<\/p>\n \u201cThe topic of unpermitted construction plays a pretty heavy role here in Florida, due to our wind-code requirements,\u201d Powell says. \u201cBuilding codes are minimum standards that ensure public health and safety. In construction, they also uphold the integrity of the installation and ensure items will hold up to the regional environment.\u201d Usually, homeowners think about the additions they make to their home as adding value, and therefore don\u2019t think through the consequences of carrying out unpermitted work. If the seller is a confident DIY-er<\/a> or a contractor, they may forgo pulling permits before updating a bathroom<\/a> or putting up a fence<\/a>.<\/p>\n \u201cSome homeowners think that they\u2019re going to keep their home forever and therefore doing work without a permit doesn\u2019t seem like a big issue, but problems can arise for them later when they eventually decide to sell,\u201d says home inspector Danny Smith<\/a>, CEO of Semper Fi Home Inspections.<\/p>\n In other cases, a homeowner might not have known that they needed a permit to complete the work. What seems like a simple DIY project that could be completed in a weekend may require a permit in some municipalities.<\/p>\n Take window replacements as an example \u2014 it may seem like an easy project, but area zoning and building codes<\/a> may consider it a structural change, especially if you plan on replacing more than one. Anything from adding a deck or patio space to increasing the number of bedrooms or bathrooms in a home could be an unpermitted addition. Let\u2019s take a look at some of the most common ones<\/a>.<\/p>\n Buying a home with unpermitted additions can come with a number of risks. Kaminsky advises buyers to carefully think through whether they feel comfortable purchasing a home with unpermitted additions.<\/p>\n Before you jump in and make an offer, it\u2019s important to consider the following scenarios: Having to tear down the addition and build a new, up-to-code replacement is by far the biggest risk buyers face when buying a house with unpermitted additions. Buyers can often apply for a permit for the addition after it\u2019s completed. However, if the city inspects the new room and finds it\u2019s not up to code, they will likely ask the buyer to tear it down.<\/p>\n \u201cWorst case scenario, the city says no on the permit and you must have it removed,\u201d Kaminsky says.<\/p>\n Tearing down and rebuilding a new addition can come with a hefty price tag. Though costs will vary based on the scope of the project, rebuilding a whole room can cost as much as $21,927 to $83,339<\/a>. In some cases, mortgage companies<\/a> will agree to finance a home with unpermitted additions so long as there\u2019s a plan to bring the home up to code<\/a> either before or after closing, according to Smith. But if the addition was so poorly constructed that it\u2019s a safety hazard, or if it can\u2019t be easily fixed, then your lender may refuse to finance the purchase.<\/p>\nWhy would a home have unpermitted work?<\/h2>\n
Common unpermitted additions<\/h2>\n
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Risks of buying a home with unpermitted additions<\/h2>\n
You might have to tear the structure down<\/h3>\n
Mortgage troubles<\/h3>\n