Like many first-time home buyers, I have been bidding on short sale and REO's for a few months. What I've noticed is that many of these houses have unpermitted, or permit-unknown additions. (An office connected to the house through an enclosed patio)
Particularly this one house that I am interested in more than any one I've seen, too, has additions, and they are unfinished. As far as the structures go, they seem to be done really well, and they need some cosmetic works. The office needs a door, wall paint and floor molding, etc. The enclosed patio seems to be within "No-Permit Required" guideline given by City of San Diego. Electric works for both patio and office seemed to be done, as lighting fixtures and wall heater are installed. Stucco exterior walls are all painted, and it has nice ceilings. I went to see the house on a rainy day, and there was no sign of leaks for flood.
So, here comes my question. If I happen to get this house, I plan to at least get the electric wiring on these additions checked out and bring it to the City's codes. If I do so, I assume, I may need a permit from the city and may have to get inspected. Would that open a can of worms; perhaps that city may require that I get the unfinished additions permitted and fix up all at once or demolish either or both the additions? I plan to eventually finish the unfinished additions and perhaps get the 'after-the-fact permit', but at first, I only want to get the electrical part taken care of, for the sake of safety.
I plan to get a copy of construction permit records from the city, if my offer gets accepted - perhaps, there may be open permit for these additions that have never been closed (like owner running out of money or something). Who knows.
I just wanted to hear your professional opinions/comments/recommendations since house hunting has been hard enough, and I don't want to limit my house choices by entirely eliminating the houses with additions that seem to be okay.
I am pre-approved for FHA and FHA 203k loans. According to my lender, unpermitted additions would not prevent them from funding, as long as the remodel/additions are not hazardous. Of course, if anything bad happens during the escrow, I will have the right to walk out within the 17-day appraisal contingency period. However, I wanted to do more research by asking professionals to know what may be the consequences of buying a house with unfinished addition that I am willing to work on (eventually).
Any comments are welcomed!
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