Typically, sellers who think to themselves, “I need to sell my house fast,” are in a bit of a pinch. However, don’t be unprepared when selling your home, especially if you’ve made any unpermitted additions. Here are the things you need to know if it has unpermitted additions on it that will complicate the process in any way, shape or form.
Permits are legally required for most home improvement projects, but some homeowners still choose to proceed without one. This might save them time and money initially, but it can drastically reduce their home’s value when it comes time to sell – especially if the addition was substantial.
If you’re trying to sell your house fast with an unpermitted change, whether or not the previous owner had proper licensing; then there’s no need for worry because they do offer options as well! But expect this process will be more complicated than with traditional sales methods.
Homeowners Insurance Might Not Cover Future Hazards
The homebuyer might not be able to recover any losses if they find evidence of unpermitted additions and someone is injured or the property sustains damage.
The uncertainties surrounding a living space can make it less desirable for many buyers, so potential homeowners should always investigate whether there are unauthorized modifications on their new purchase before signing anything official.
You May Receive a Low Appraisal Value
The presence of unpermitted additions can trigger an appraiser to use a lower sales price when calculating the value of your home, which may result in getting less than you expect from the sale.
Unpermitted changes can have a major impact on your appraisal. Some lenders won’t issue loans for homes with unpermitted additions. Meanwhile, others may request that the additional square footage not be included when determining the home’s value of sale. This can result in an inaccurate valuation estimate which could mean your sale price will be lower than expected. This will result in your potential buyer not being able to secure financing – ultimately killing the whole sale.
Lawyer Up
The goal of a home seller is to provide enough information for buyers so that they can make an informed decision. Should you have unpermitted changes in your property, it’s important to disclose this and any other potential risks or problems with the buyer beforehand.
What if someone purchases the house regardless despite knowing about possible issues? They still might be able to file a lawsuit against contractors who were not licensed.
Signs of a Home with Unpermitted Work
While it’s tempting to go into a sale with the best intentions of keeping your home in good condition, you shouldn’t neglect all that research and due diligence. Whether or not homeowners make unpermitted changes are one thing they check for during a purchase – don’t be caught off guard! Checking city records can often be done online, which makes things easier if you’re looking to sell your house fast.
Retroactive Permits
One option is to go to the city or county and apply for a permit on the additions retroactively. If you made your own additions, you’re likely going to incur penalties–and even additional taxes–to top of that permit fee. But if it was work done by an earlier owner, these costs might be waived. And either way, there are still fees required just in case any other work is needed so make sure everything stays up-to-code!
In the worst case scenario, you may need to remove your unpermitted additions which could result in a lower appraisal than expected. If this outcome is something that worries you then it might be worth hiring someone who knows what they’re doing and can help guide through how much these permit requirements will cost.
If you need to sell your house fast, keep in mind getting your hands on this paperwork retroactively can take weeks or even months. Be sure to budget enough time accordingly, if you’re able to.
Sell Your Home As-Is
You can choose to keep your home unrepaired and disclose the illegal additions, but you’ll need to set an asking price well under market value in order for people to even bother looking at it. You might not be able to charge full retail prices for a new bathroom or bedroom if they’re never going to put them up anyway.
Partnering with a real estate agent for a sale like this may not be the best plan. Typically about 9% of the total sale cost is paid out in fees and closing costs, so if you’re selling for under market value already, why lose even more money?
If you’ve been thinking, “I need to sell my house fast,” check out our services at SellThatFloridaHouse. We can help homeowners in a pinch by providing fair and fast offers to those looking to sell their homes fast. We buy houses in any condition – it’s the simplest, quickest, and most hassle-free way to sell your home in a pinch. In order to avoid the long process of listing and waiting for buyers, SellThatFloridaHouse can guarantee a fast close and fair cash offer.