We are considering buying a home that has an unpermitted addition. The sellers were very clear that the back porch was converted into a liveable space without getting the proper approvals. What would this mean for us? Would it be harder to sell the home in the future?
Asked by Anonymous| 06-16-2021| 1,624 views|Tips & Advice|Updated 3 years ago
An unpermitted addition creates several risks that you need to understand before buying.
The city can require you to bring the work up to code, obtain retroactive permits, or in the worst case remove the addition entirely. This usually gets triggered when you pull permits for other work on the property, when a neighbor complains, or when the unpermitted space is discovered during a future sale. The risk transfers to you the moment you close.
Insurance is a concern. If damage occurs in or because of the unpermitted addition, your homeowner's insurance could deny the claim. If the electrical or plumbing work wasn't done to code and causes a fire or water damage, the insurer has grounds to refuse coverage for that portion of the home.
Resale will be harder. When you sell, the next buyer's lender, inspector, and appraiser will all scrutinize the addition. The appraiser may not include the unpermitted space in the home's square footage, which reduces the appraised value. The buyer may demand you get retroactive permits or give a credit to cover the cost of doing so.
If you still want to buy, get the unpermitted space inspected by licensed tradespeople, not just a general inspector. Find out whether the work meets code and what it would cost to get retroactive permits. Factor those costs into your offer price so you're not paying full price for a home with a known liability.
Buying a home with work that was done without proper permits carries both short‑term and long‑term risks. Permits exist to ensure that additions meet building codes, zoning requirements, and safety standards. If a previous owner enclosed a porch or added living space without approvals, there’s no guarantee the structure is sound or that electrical, plumbing and insulation were installed correctly. That can create health and safety issues, and it may also void parts of your homeowners insurance if damage is traced back to uninspected work.
From a legal standpoint, most municipalities can require the current owner to either obtain retroactive permits, bring the work up to code, or even remove the addition entirely. That means you could inherit the cost and hassle of opening up walls, scheduling inspections and paying fees. When you go to sell, buyers and lenders will ask about permits, and unpermitted square footage is typically not counted in appraised living area, which can affect the property’s value and financeability.
Before moving forward, consult with your real estate agent, a qualified inspector and the local building department. You may be able to negotiate with the seller to obtain permits or provide a credit for the potential cost. Understanding the scope of the work and the requirements to legalize it will help you decide whether the home is still a good fit.
Hello Nancy, answer to your question nothing will happen if you buy the home without approvals the way the market is and with so low inventory everyone is buying everything. For the future sales of the home I think you will still get what it's worth even if it's not on tile, feel free to reach out, I can explain better over the phone.- Alfred
Anna has the perfect answer. It really depends upon where you live. Different municipalities have different standards and enforcements of the those standards. This may haunt you when selling if there is a City Inspections prior to close. If there are no City standards or enforcements then this unpermitted work will only haunt you if your buyer pool is limited, or you are competing against other "Permitted" spaces. If all other things are equal buyers will prefer permits. If it is a seller's market, and there are no City issues Alfred is probably correct below. Good luck
Hi Nancy, depends on where You live, there are different consequences when buying a home without permitted changes. Additions specifically, usually require an engineer approval. If addition was approved and only converted to liveable space - this may mean only that they added heating - which also typically requires a permit as the most building codes say that any plumbing, electrical, or structural changes need to be approved. If this issue comes up during appraisal or municipal search, the Certificate of Occupancy if existent may be revoked until the work is inspected and approved. The costs involved will also be higher. Feel free to reach out if You have any questions. Goodluck!
