Permitting Problems: 3 Nightmare Scenarios

April 14, 2021

Homes additions and renovations that included plumbing and electrical work need to have permits. Without them, buyers and sellers face big headaches. Here’s what could happen:

Problems Selling
Appraisers will decrease the square-footage of a home if the work was unpermitted and lenders may not approve the loan, even if the buyers are ok with the unpermitted work.

Homeowners can apply for permits after the fact, but this route can be expensive because of fines and extra taxes, in addition to the permit fee. If the permit problem can’t be remedial, the addition may need to be removed, decreasing the home’s value.

Insurance Dropped
If there’s a fire, insurance companies likely won’t cover the damages when they discover the work was not properly permitted.

Point is, permits matter!