3 Permit Pitfalls You May Not Know About

Nearly every homeowner agrees that the very best part of home is making it yours!

We love nothing more than seeing our homeowners transform a house into their personal sanctuary. Whether that means a few perfect paint colors or the bathroom of your dreams… chances are that the challenges grow as your dreams do.

While for some projects it is crystal clear that permits are required… there are always those gray areas that make you say… “Do I really have to get a permit…?”. While most buyers and sellers are aware that non-permitted additions cannot count into the square footage of the home for transaction & appraisal purposes, you may not know these 3 things that un-permitted work can impact:

#1: Your Insurance Policy.

Read, know & understand the fine print AND how it applies to the home that you own. Unpermitted renovations may violate you home insurance policy. What if the work was performed incorrectly (even before you bought the home!) and faulty wiring sparks a fire? Would the insurance company really cover the damage? Even if you didn’t know? This is a lesson you don’t want to learn the hard and VERY costly way.

#2: Overall Quality Control.

While we can recommend an amazing contractor who does his very best work no matter who is looking… there are some professionals who take advantage of the fact that there will be no oversight. If your home renovation professional is willing to work without permits… what other corners are they cutting that you may be unaware of?

#3: The Home Loan.

In reality, most unpermitted work is acknowledged when a home enters the market. Be sure to ask your lender and real estate agent how appraisers have responded to like homes. Do they depreciate the value of the work that has been done? Require the work be redone with permits? Noted permits or not in the comment section as it pertains to recent upgrades?

Does this mean that any home with un-permitted work is a huge red flag? Or that you cannot lend on it? Or that you should panic when you even hear the ‘p’ word? Absolutely not!

Knowledge is power, and we believe that by asking the right questions – you can always find the right path for you. We have worked with homes of every type of condition and addition (no... really!) and we are happy to answer your questions about how renovations and associated permits impact your buying, selling & investment goals.

All our best, 

Mark & Jason

408-596-5526

Resource Used: 5 Pitfalls You May Encounter If You Renovate Without a Permit