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Hi all. I live in the Pacific Northwest and I'm thinking of making an offer on a house that has been remodeled without permits. Is this a bad idea? A garage was converted into a bedroom and 3/4 bath, and the kitchen and full bath have been updated. What do I need to look out for? Thanks.
You really NEED a local buyers agent to assist with this. If the town has some process to get completed additions re-inspected with no penalty that would be best case. In worst case I have seen municipal authorites file suit for the removal of the work done without permits.
Obviously it would be insane to make any offer on a home that you might need to start ripping down.
Local real estate agents ought to have the experience to guide you.
Well, my agent isn't really helping much. She talked to the seller's agent, and he told her they hired a licensed and bonded contractor. Also, it turns out that the garage conversion was done by the prior owner (but I don't know it that was permitted). The current owner just updated the kitchen and bathrooms.
I have seen some horrible issues done in areas where the permitting process also allegedly involves inspections by city employees that are suppose to enforce the building code. I suspect the stopped by for a beer and bribe...
I have also seen areas where permits are mostly just and excuse for the town to raise extra revenue and when the work is done with pride by a skilled contractor with concern for the safety of the owners, long term value and care about his /her own reputation everything was top notch.
If your agent can't answer your questions talk to their supervising broker.
If the broker can't answer your question talk to the real estate association.
If the association won't answer your question talk to the state licensing authority...
Well if you are in Oregon you just write in the offer that the seller is to get all work permitted. They can retroactively permit the work.
Oh, and Oregon has lots of work that can be done without permits. I know in CA you need permits for loads of things. Not so here. It might not be as big of a deal as you think, and the updated kitchen and baths might not have needed permits depending on what they did.
Hi all. I live in the Pacific Northwest and I'm thinking of making an offer on a house that has been remodeled without permits. Is this a bad idea? A garage was converted into a bedroom and 3/4 bath, and the kitchen and full bath have been updated. What do I need to look out for? Thanks.
Consult a real estate attorney and find out what the sellers should do regarding inspections to get it approved after the fact. You may run into problems in regard to the lender if the garage is included in the mortgage appraisal.
Well if you are in Oregon you just write in the offer that the seller is to get all work permitted.
They can retroactively permit the work.
Oh, and Oregon has lots of work that can be done without permits.
Permits are less than half of the issue when facing questionable work.
Being done properly, well and to the correct CODE's is far more important.
Getting such work inspected to see if it is done to code will often require removing wall board
or even more expensive finishes in order to see how the plumbing was routed
and what type of fittings were used and similarly with the electrical work and the carpentry too.
Permits are less than half of the issue when facing questionable work.
Being done properly, well and to the correct CODE's is far more important.
Getting such work inspected to see if it is done to code will often require removing wall board
or even more expensive finishes in order to see how the plumbing was routed
and what type of fittings were used and similarly with the electrical work and the carpentry too.
If they just updated the kitchen and bathrooms with a licensed and bonded contractor, things are likely up to code. The buyer agent can ask for the buyer to be named as an insured on the remodel work so that way if there is an issue after close, the buyer can go after the contractor directly.
The garage conversion was done a while ago, but if it was a quality conversion then I'd worry less about it. I've seen one good garage conversion in my time as an agent. The rest have been on a scale from horrendous to poor. It wouldn't be hard to drill strategic holes to see what is in the wall. Home inspectors have tiny mirrors, like dental ones, that they can insert and see into the wall if they get permission to drill a couple of holes. I just don't think it is that big of a deal. The buyer agent just needs to write the contract so that the buyer can inspect/remove/drill as needed. THe OP can also hire a home inspector with a thermal imager to see if there are any hotspots in the walls to indicate improper wiring.
Some unpermitted work is freak out worthy and some isn't. It just depends.
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Specifics will make all the difference...
