What happens when you discover unpermitted work in your home just before selling it?
Unpermitted work can be a significant concern for homeowners looking to sell. Whether it’s a finished basement, an added bathroom, or even new electrical wiring, work done without the necessary permits can complicate the selling process. But fear not. There are strategic steps and best practices for selling a home with unpermitted work, particularly in the Maricopa, AZ area.
Understanding Disclosure Requirements
In Arizona, sellers are required by law to disclose any known issues or defects with the property. When it comes to unpermitted work, it is crucial to be clear and upfront with potential buyers. Providing detailed information about what work was completed, when it was done, and by whom will help establish transparency.
You can find authoritative guidance on Arizona’s disclosure obligations at the Arizona Department of Real Estate. Ensuring full compliance with these regulations will not only protect you legally but also build trust with prospective buyers.
Pricing a House with Unpermitted Work
Pricing a home with unpermitted work can be tricky, as buyers may perceive it as a risk. Therefore, you must be strategic. Start by considering how the unpermitted work impacts the overall value of the home. In some cases, it may not detract much from the price if the work is well-done and enhances the property in a meaningful way. Alternatively, consider adjusting your price to account for the potential costs and complications a buyer might face in bringing the work up to code.
For more comprehensive insights into setting competitive prices, Forbes offers a guide to pricing homes that may help guide your decision-making process.
Options for Addressing Unpermitted Work
Beyond disclosure and pricing, there are other strategies you may consider to mitigate any potential sale issues. You may choose to retroactively obtain permits, which can reassure buyers but may involve additional costs and work. Another option might be offering a credit to buyers at closing to cover future permitting expenses.
Also, consider a home inspection before listing. This allows you to understand the full scope of any unpermitted work and gives you a chance to address potential issues upfront.
Conclusion
Selling a home with unpermitted work in Maricopa, AZ doesn’t have to be daunting. By clearly disclosing information, pricing strategically, and considering your options to address the unpermitted work, you can position yourself for a successful sale.
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