Selling a Milwaukee property sometimes comes with hurdles, and unpermitted work can be one of the biggest. It may decrease the value of your home, present legal risks, and drive away interested buyers. Despite these challenges, it’s still possible to sell a house with unpermitted work successfully.
In this guide, we’ll define unpermitted work, explore its impact on your sale, and outline your options. Whether you choose to make repairs or sell “as is,” you can find a workable solution.
What is unpermitted work?
Unpermitted work occurs when renovations or construction are completed without obtaining the required permits. Permits are typically necessary for projects like:
- Adding rooms or structures to your property
- Upgrading your house’s electrical system
- Installing a new HVAC unit
- Cutting and installing new windows
Permits are designed to uphold safety and regulatory standards. Without them, you might encounter:
- Safety issues: Unpermitted work can cause problems like fires and structural collapse.
- Fines: Local governments may impose fines for unpermitted work.
- Insurance problems: Insurers could refuse claims or coverage for homes with unpermitted work.
Permitted work helps ensure compliance with zoning and construction regulations. Without these safeguards, issues like property encroachments, such as a fence that extends into a neighbor’s yard, or zoning violations, like a nuisance business on an otherwise quiet street, may occur.
Unpermitted work can decrease home value and deter buyers, who may be unwilling to tackle the fixes. Additionally, it could lead to legal consequences, especially if injuries occur.
Understanding code violations
The City of Milwaukee offers online code and permitting information for residents. Other Wisconsin cities like Sheboygan and Waukesha offer this information online as well.
Local building codes are often based on universal building codes like the Wisconsin Uniform Dwelling Code and the 2023 National Electric Code.
Building codes evolve, which can complicate matters for homeowners. For instance, basement egress requirements changed in 1997 to prioritize emergency safety, putting some older properties in violation. While older work might be “grandfathered in” if it was once compliant, this is less likely with unpermitted work.
Similarly, Wisconsin HOAs enforce their own rules, such as guidelines regarding paint colors and structural changes. Violating HOA rules can create issues comparable to code violations, so it makes sense to know the rules before you have work done.
Common unpermitted work and code violations
Unpermitted renovations in Milwaukee can pose risks, especially when it’s time to sell. Examples of common issues include:
- Building an unsafe or non-compliant addition
- Installing a half-bath with leaky, improperly done plumbing
- A roof replacement that fails to meet code
- Construction of a fence or shed that violates property lines
- Installing too large or too small of an HVAC unit
Is it legal to sell a house with unpermitted work?
Yes, Wisconsin law allows you to sell a property with unpermitted work. Failure to disclose the fact to the buyer, however, can result in lawsuits, so it’s important to be upfront with potential buyers about any unpermitted work on your house in order to avoid legal issues down the road.
How unpermitted work can affect your home sale
Unpermitted work makes properties less attractive to buyers, who might have to resolve the issue while living there and/or face resale complications. It also creates challenges during inspections and appraisals.
For lenders, undisclosed unpermitted work is a liability. There’s a good chance these kinds of houses will fail lender-mandated inspections. Buyers can also face consequences if they know about unpermitted work and withhold this information from the lender at closing.
Insurance companies may decline claims for damages caused by unpermitted work. For example, if you had plumbing work done that wasn’t permitted and up to code, and a water pipe bursts, there is a chance that insurance won’t cover the damage.
What are your options if you’re selling a house with unpermitted work?
Here are 4 options if you have a house with unpermitted work:
- Address and permit the issue: The most straightforward solution is to fix the unpermitted work and secure the proper permits. Simple fixes, like installing a water heater, can be relatively cheap, while complex projects, such as remedying an unpermitted swimming pool, may require a larger budget.
- Request a retroactive permit: If the work was properly done but never permitted, you can seek a retroactive permit. The inspector will review and either approve the work or require updates.
- Sell the property “as is”: Selling “as is” means leaving the unpermitted work unresolved. You’ll need to disclose the issue, but off-market buyers in particular might not see it as a problem. Note that “as is” houses generally sell for less than updated properties.
- Credit the buyer at closing: If you have the funds but want to avoid overseeing repairs, you can offer a seller concession so the buyer can address the work.
Common mistakes when selling a house with unpermitted work
If you go the route of selling “as is,” here are some potential pitfalls to avoid:
- Failing to disclose unpermitted work: Not informing buyers about unpermitted work can lead to lawsuits and other legal complications. Transparency is key to avoiding these issues.
- Overlooking the risks during the sales process: If you’re making updates while selling, ensure that all work is permitted. Unpermitted renovations can fail a lender’s inspection and deter buyers.
- Underestimating repair costs: Addressing unpermitted work can be expensive, especially for large-scale projects. Be prepared for these costs before listing your home.
- Skipping professional guidance: Some unpermitted work may not significantly impact your sale, but other cases can make selling very difficult. Consulting with experts like engineers or real estate professionals can save you trouble.
We Buy Ugly Houses® buys properties with unpermitted work.
We Buy Ugly Houses buys houses “as is” in Milwaukee and the surrounding area. We consider houses in just about any condition, including turnkey homes, fixer-uppers, and houses where major renovations were done without the proper residential permits.
Don’t let building code violations stand between you and a fast, hassle-free sale. Get in touch with We Buy Ugly Houses today!
This blog is for informational purposes only and should not be considered legal advice.
