Selling a house with unpermitted work or an unpermitted addition

Plenty of Sacramento County homes have a converted garage, an added room, or other work that was never permitted, often done by a previous owner. It can complicate a traditional sale, but it doesn't have to stop one.

What counts as unpermitted work

A garage converted into a bedroom, office, or unit
A room addition, enclosed patio, or finished attic
An accessory dwelling unit or "in-law" unit built without approval
Added bathrooms, kitchens, or plumbing and electrical changes
Replaced water heaters, HVAC systems, or gas lines done without a permit
Decks, patio covers, carports, or other structures

Many owners only learn the work was never permitted when they try to sell, or when a buyer's inspector or the city notices it.

Why it complicates a traditional sale

Buyers who use a mortgage need the lender's appraiser and inspector to approve the property, and a house with unpermitted work will often fail that review. Unpermitted space may not be counted in the home's official square footage, and some lenders and insurers are cautious about it. Because many buyers rely on financing, that can shrink your pool of buyers to those paying cash, and they worry about what they might be asked to fix or tear out later. On the seller's side, you generally have to disclose work you know about. California's standard seller disclosure form asks about alterations made without permits, and selling as-is does not remove that duty. Related issues can also show up as code violations.

Your main options

Get it permitted after the fact. Many cities and counties have a process for permitting existing work. It can require plans, fees, inspections, and sometimes corrections, so the cost and timeline can be hard to predict. Call your building department to ask what it would take.
List it with disclosure. You can sell on the open market and disclose the work, but expect a smaller pool of buyers and possible price negotiations after inspections.
Sell as-is to a direct buyer. We buy houses with unpermitted work and don't ask you to permit or repair anything first.

How we handle unpermitted work

We buy as-is. We look at what was built, whether it appears to have been done well, and what it might cost to bring it into compliance, and we account for that cost and risk in our offer. We'll also be upfront about one thing: unpermitted space generally isn't treated as legal living area, so our offer is usually based on the home's permitted size. You'd still need to disclose what you know, and a local title company handles the closing. If the work needs repairs too, see houses that need repairs.

Before you decide

Ask the city or county whether permits exist for the work. You can often find out by address.
Find out who did the work and when. Records from a previous owner can help.
Ask your building department what an after-the-fact permit would require, and get a rough cost.
Compare that cost against a direct offer. If legalizing the work is cheap and quick, doing it and listing may bring more.

Tell us what was built and we'll give you a straight answer on whether a sale makes sense. For more on how violations affect a sale, read can you sell a house with code violations in Sacramento County?

Common questions

Do I have to disclose unpermitted work when I sell?

Generally yes, if you know about it. California's standard seller disclosure asks about it, and selling as-is doesn't remove that duty. An attorney can tell you what applies to your sale.

Can a buyer get a mortgage on a house with unpermitted work?

Often not. The lender's appraisal or inspection can flag the work, which is a big reason many of these homes end up selling to cash buyers.

Will you buy a house with a garage conversion or an unpermitted addition?

Yes. We buy as-is and factor the risk and any cost of legalizing the work into our offer.

Will you pay for the unpermitted square footage?

Usually our offer is based on the permitted size of the home, since unpermitted space generally isn't counted as legal living area. We'll explain how we got our number.

Could the city make me tear it out?

Sometimes, depending on the work and what the city finds. Many projects can be legalized with permits and inspections. Your building department can tell you what applies to yours.

Other situations

Where we buy

Sacramento Elk Grove Citrus Heights Folsom Rancho Cordova Carmichael Fair Oaks Orangevale Galt Rancho Murieta