Selling a House With Unpermitted Work: What Homeowners Should Know

Unpermitted work is more common than most homeowners realize. Finished basements, garage conversions, added bathrooms, electrical upgrades, or additions often get done without permits—sometimes decades ago. When it’s time to sell, these hidden issues can bring everything to a halt.

The good news: you can sell a house with unpermitted work, and you don’t have to fix or permit everything first.

What Counts as Unpermitted Work?

Unpermitted work includes any improvement completed without required permits, such as:

• Electrical or plumbing upgrades

• Structural modifications

• Additions or conversions

• HVAC changes

Even work done by previous owners can create problems during a sale.

Why Traditional Buyers Back Out

During inspections and appraisals:

• Lenders flag unpermitted spaces

• Appraisers exclude square footage

• Buyers demand costly corrections

• Cities may require retroactive permits

This often kills deals late in escrow.

The Cost of Permitting After the Fact

Correcting unpermitted work can mean:

• Opening walls

• Engineering reports

• Inspections and rework

• Fines or penalties

Costs are unpredictable—and sometimes higher than the original renovation.

Selling As-Is With Unpermitted Work

Cash home buyers and real estate investors:

• Buy homes as-is

• Don’t require permits to be corrected

• Factor risk into the offer

• Close without lender restrictions

This eliminates permitting headaches entirely.

Common Questions

Do I have to disclose unpermitted work?
Yes—but disclosure doesn’t prevent an as-is sale.

Will buyers still want the house?
Investors actively buy homes with unpermitted work.

Can the city stop the sale?
Rarely. Ownership can transfer with known issues.

The Bottom Line

Unpermitted work doesn’t mean your house is stuck—it means the buyer pool changes. Forcing a traditional sale can cost time and money you’ll never recover.

Selling your house as-is to a real estate investor provides a clean exit without reopening walls or permits.