Stuck with open permits while trying to sell your home? Nightmare, right?
Discover if you can sell a house with open permits without sacrificing your sale price or scaring away buyers.
Open permits feel like ticking time bombs—but they don’t have to derail your plans.
We’ll walk you through practical solutions that protect your investment and keep buyers interested.
Key Summary
- Open permits don’t stop you from selling, but they need attention and full disclosure.
- Finding open permits on a house is easy through local records or online searches.
- Resolving open permits before selling can increase property value and ease the process.
- If repairs are needed, closing an open permit can cost anywhere from a few hundred to thousands.
Selling a House with Open Permits
While you can sell a house with open permits, it calls for a clear strategy and transparency.
Whether the issue is an open permit on a house or a contractor that never closed the permit, it’s important to understand how to handle the situation.
Selling a house without permits or with open ones can lead to complications, but it doesn’t mean a sale is off the table. You need to disclose the situation to potential buyers and understand your options for resolving the issue.
How to Find Open Permits on a House
If you’re not sure whether your property has open permits, here’s how to find out:
Contact Your Local Building Department
They can search for any open permits associated with your property. Many local offices maintain records that are accessible to homeowners.
Check Online Databases
Many municipalities offer online tools to look up open permits. This can be a quick way to gather information.
Review Your Property Documents
If you’ve had work done in the past, check the paperwork to see if permits were closed properly.
Verify Contractor Compliance
If a contractor completed work on your home, make sure they closed the permits. A contractor never closing a permit is a common issue that can create headaches during a sale.
How Much Does It Cost to Close an Open Permit?
The cost to close an open permit varies based on location, the type of work involved, and the current condition of the work.
- Inspection Fees: Many jurisdictions charge a fee for final inspections, typically ranging from $100 to several hundred dollars.
- Repair Costs: If the work wasn’t completed or doesn’t meet current building codes, you might need to hire a contractor for repairs. This can significantly increase costs.
- Permit Renewal Fees: If the original permit has expired, you may need to reapply, which often involves additional fees.
- Potential Fines: In some cases, you could face fines for unpermitted work or open permits, depending on local regulations.
Options for Handling Open Permits Before Selling
If you discover open permits on your house, you have a few options for handling them before listing your home for sale:
1. Complete the Work and Close the Permit
What to Do: Finish any outstanding work and schedule the necessary inspections.
How to Close an Open Permit on a House: Contact your local building department to arrange for a final inspection. Once approved, the permit will be officially closed.
- Pros: Simplifies the sale process and reassures potential buyers.
- Cons: May involve upfront costs and time to complete repairs and pass inspections.
2. Sell As-Is with Full Disclosure
What to Do: List the property as-is, openly disclosing the open permits to potential buyers.
- Pros: Saves you from the hassle of closing the permits yourself.
- Cons: Could limit your pool of buyers and reduce offers. Buyers might expect a discount to account for the open permits.
When selling as-is, make sure you provide all available documentation to buyers, including any information on how to close an open permit on a house. This transparency can help prevent legal issues after the sale.
3. Offer a Credit to the Buyer
What to Do: Instead of resolving the permits before the sale, offer a financial credit to the buyer to handle the issue.
- Pros: Attracts buyers who are willing to manage the permit closure themselves. It also avoids upfront costs for you.
- Cons: You might need to reduce the asking price or negotiate credits during the closing process.
A credit can make the deal more appealing while reducing your immediate expenses. However, ensure this arrangement is clearly outlined in the sales agreement to avoid disputes.
How Open Permits Affect Marketability and Property Value
Open permits are likely to affect how quickly you can sell and your property’s value.
Marketability
Open permits can affect how quickly your home sells. Buyers might be hesitant if they need to address the permits themselves, particularly if they are first-time homebuyers or not familiar with the permit process.
On the other hand, disclosing open permits upfront can reduce surprises during closing and build trust with buyers.
Property Value
Open permits may lower your property’s value, particularly if the permits involve structural, electrical, or plumbing work.
If buyers anticipate needing to invest time and money to close open permits, they may offer less.
However, if the permits involve minor work, like landscaping or cosmetic updates, the impact on value might be minimal.
The Closing Process: What to Expect with Open Permits
During the closing process, open permits can create delays and negotiations:
- Buyer’s Inspection: If the buyer’s inspector finds open permits, they may request that you resolve the issue before closing.
- Legal and Contractual Steps: You may need to sign documents detailing how the permits will be handled, whether you close them or offer a credit.
- Working with Professionals: A real estate agent experienced with open permits can guide you through this process. They can help negotiate terms with the buyer and ensure all disclosures are in order.
Tips for Selling a House with Open Permits
- Be transparent and disclose any open permits early.
- Get an estimate on closing costs so you can factor this into negotiations.
- Consult professionals to help you navigate this situation smoothly.
- Consider a cash buyer as they are generallly more willing to purchase homes with open permits, offering a quicker and simpler sale.
GET CASH OFFER Frequently Asked Questions
How do I find open permits on a house?
You can find open permits by contacting your local building department or checking online records. Some areas provide permit histories on their websites.
How much does it cost to close an open permit?
The cost to close an open permit depends on the work required, but it can range from $100 to several thousand dollars if additional repairs are needed.
Can I sell a house without permits?
Selling a house without permits is possible, but you must disclose it to buyers. Buyers may ask for a lower price or expect you to fix the issue before closing.
Conclusion
Selling a house with open permits doesn’t have to slow you down. Whether you choose to close the permits, sell as-is, or offer credits to the buyer, the key is transparency.
Handle the permits properly, and you’ll avoid roadblocks and ensure a smooth sale. If you’re feeling stuck or unsure about open permits, don’t stress.
Let us get you the sale you deserve. Get in touch with us today for a free, no-obligation cash offer.
