Should We Consider Homes With UnPermitted Additions?
September 5th, 2009 categories: Buyer Resource, Seller Resource
Should Sonoma County home buyers consider purchasing homes with unpermitted additions? An interesting question from one of our current clients? And one that I will take a definite position on. In a one word answer…NO! There are some caveats, but I will say with all of the risks in unpermitted work, I would avoid it if given the opportunity.
Why would you want to take on someone else’s problems? There clearly has to be a reason they did not obtain proper permitting, other than costs. Sure…there are some costs (permitting, and possible Real Estate tax increases) involved, but these are negligible compared to the value that could potentially be added.
My thoughts are that there can be serious risks with unpermitted additions, and I will discuss a few of these risks below.
Wiring can be installed incorrectly, and can pose a hazard inside the walls that can eventually be deadly. This is the precise reasons why electricians must be licensed by the state…improperly installed wiring inside home can be deadly.
There can also be structural when considering home with unpermitted additions issues as well. If someone wanted to save money on lumber, they may space the the studs too far apart to bear as much weight as needed.
Not to scare anyone, I just want to make sure we point some of the risks of purchasing a home with unpermitted additions.
Cosmetically…I have to say that maybe 10% of all unpermitted additions I come across even look nice. This is unfortunate, as I see it as people spending time and money to NOT improve their home and its’ value, and potentially even detract from it.
Certain areas have more unpermitted additions than others. Western Sonoma County, AKA West County, has their fair share of unpermitted additions. Sebastopol is actually a reasonably large offender in this category. Other areas, such as Santa Rosa and Guerneville also have many violations. Even Rohnert Park and Petaluma have unpermitted additions…they are everywhere, and that is precisely the reason I am writing on this subject.
I believe this to be a serious issue…not to be a downer, but I do think there can be serious risks with unpermitted additions. If grad school taught me anything, especially graduate finance courses, is that risks need to be mitigated, or they should kill the deal. When it comes to finance…I personally value my life more than I value my money, and assume our readers share the same belief.
Is a room built in a garage an unpermitted addition? They can be, and I still think they pose additional risks. The room can be torn out easily enough, and the risks can be remedied, but a thorough home inspection is suggested even with this seemingly minor project. Wires must be capped off correctly, and any alternations to original walls should be remedied as well to make sure the garage is still structurally sound.
I wrote an article about How Not To Choose A Contractor, and I want to be clear. When you want to choose a contractor, I would suggest that you choose one who has good reputation AND one who is licensed. When someone is licensed, they are trained in a specific area, and are held to higher standard…usually ethical standards as well to protect the public. We think it is in your best interests to use licensed contractors.
I am not an expert in construction, but I have remodeled enough homes to know what can be found when you open up walls. My suggestions are not just for Sonoma County but for all areas beyond, and I would suggest not buying a home with unpermitted additions.
