If you’re getting ready to sell your home, you might be wondering, “Can you sell a house with open permits?” You can, but it’s not always simple.
Whether you’re working with a real estate agent, going the for-sale-by-owner route, or looking for a cash buyer who says “we buy houses as-is,” understanding how open permits can affect the transaction is a must.
What Are Open Permits?
These permits stay attached to your property through municipal permit records. An open building permit means a homeowner (or a previous one) pulled a permit for renovations requiring permits, such as adding a deck or rewiring electrical, but never had the work signed off by the city or county. That permit just sits there in municipal permit records, technically unfinished.
An open permit can raise red flags when you go to sell. In some cases, the work wasn’t done at all, but it usually means someone forgot to schedule a final inspection. Either way, it appears in the title search, and that’s when buyers and lenders start asking questions.
Selling a House With Open Permits
So, back to the original question: Can you sell a house with open permits? Some buyers won’t care if the permitted work is clearly solid, but others will ask you to either close the permit or drop the price to cover the cost of handling this process themselves.
Unfinished or unverified work can cause lenders to hesitate to approve financing for homes with any unresolved code compliance issues. Sellers also have real estate disclosure obligations to inform buyers about any known open permits.
There are several paths forward, though.
Close the Permits Before Selling
Completing the permit closure process, which may require inspections or repairs, is the easiest way to sell. You’ll have to contact the local building department, schedule a final inspection, and have an inspector confirm that the work meets current building codes.
If the work passes, the permit gets closed. If it doesn’t pass home inspection requirements, you may need to bring in a licensed contractor to fix problems.
Disclose and Negotiate
Some sellers with open permits lower the asking price to reflect the potential hassle for buyers. This can help attract interest, but it can also have a big financial impact.
Sell As-Is to a Cash Buyer
Selling to a cash buyer who is comfortable with risk and experienced with handling the paperwork is a simple solution. Cash buyers don’t require traditional financing, so lender concerns about open building permits don’t apply. You can sell the house without investing in inspections and repairs.
Ready To Sell Without the Stress?
Open permits aren’t always a problem for a house sale. The best thing you can do is pull your municipal permit records and know exactly what you’re dealing with before a buyer’s inspector finds it first.
If you want a straightforward solution for selling with unpermitted work or an open permit, The Red Door Guys is ready to help. Call (804) 395-7355 to get a fair, no-obligation offer. We make it easy, even when you’re wondering, “Can you sell a house with open permits?”
