ARC Tip: Renovation Permits

Naturally, renovation needs and wants will arise throughout the duration that one owns a home. However, many homeowners execute renovations without obtaining the proper permits required to make these changes.

While this a fairly common mistake, we wanted to provide information and advice about securing the proper renovation permits. We spoke with our own Mechelle Wilder to discuss the importance of obtaining renovation permits and what can happen if homeowners overlook this step.

Why are permits necessary when beginning home renovations?

Permits grant legal permission from local municipalities to homeowners and/or a contractor to make improvements to a property based on local building codes. When a permit is not requested for improvements being made on a home, that home will not be inspected for possible building violations. After homes are permitted by the local municipality, the owner knows that any work performed on the home has been performed by a licensed contractor and meets all local building codes.

How can unpermitted renovations impact those trying to sell their homes?

Non-permitted renovations could have a financial impact on the sale of the home if extra square footage was added, but not permitted. That non-permitted square footage may not be allowed to be added to the total square footage by the local municipality, thereby negatively impacting its appraisal and causing the home to sell for thousands less. In the worst-case scenario, the house may be condemned by the local municipality preventing it from being sold to anyone, therefore forcing the homeowner to bring it into acceptable municipal code.

What advice can you give to those who have purchased a home with pre-existing unpermitted renovations?

If a homeowner discovers that he or she has purchased a home that has some additions or improvements that were not permitted, he or she can contact the local municipality and have them inspect the home for any violations and hire a licensed contractor to make any corrections, if needed.

Should prospective home buyers always ask to see information regarding previous renovations?

I think that it is smart to ask to see all permits for renovations, but there are many cases where the homeowner may not have a permit for a deck addition, bonus room, finished basement area, etc. If the buyer is concerned about the renovation, they should hire a licensed contractor to thoroughly inspect the home and, if in doubt, steer clear.

If you have any questions about renovation permits

or would like more information on a specific situation,

you can contact Mechelle at mwilder@arcrealtyco.com.