Selling a house with unpermitted work
Finished basements, garage conversions, additions and rewiring done without a permit: how each one surfaces during a sale, what it costs to permit after the fact, what to disclose, and when selling as-is is the cleaner route.
You can sell a house with unpermitted work in Colorado, but buyers, inspectors and appraisers will usually find it. Your choices are to get a permit after the fact, remove the work, disclose it and price it in, or sell as-is to a buyer who accepts it. The right choice depends on what retroactive permitting would cost.
The basement nobody permitted, and other common finds.
A previous owner finished the basement in a weekend. A relative wired the garage. The deck went up without anyone calling the county. Amy and Jenny see work like this on a large share of the older houses they walk through in Northern Colorado, and most of the owners who reach us did not do the work themselves.
Unpermitted work does not make a house unsellable. It makes it harder to sell to a buyer with a loan, because the inspector notes it, the appraiser may give the space little value, and the buyer starts to wonder what else is behind the drywall. A listing can survive that if the problem is small and you deal with it up front.
When the work is bigger, like a full addition, a bedroom with no egress window, or electrical you suspect is not right, the cost of making it legal can rival what you would gain from listing. That is where a sale as-is fits. This is general information, not legal advice; confirm with a Colorado attorney about disclosure and with your city or county building department about permits.
The unpermitted work we buy houses with
- A finished basement. Bedrooms without proper egress, a bathroom added on its own, framing and wiring nobody inspected. The most common find in Northern Colorado houses.
- A garage conversion. An extra room or apartment where the cars used to go, often with heating and electrical added after the fact.
- An addition or enclosed porch. Square footage the county records may not show, which creates a gap between the listing and the assessor’s numbers.
- Electrical and plumbing changes. New circuits, a moved water heater, a subpanel, a bathroom relocated. Work that should have been inspected and was not.
- Decks, sheds and outbuildings. Smaller structures that still needed a permit in most jurisdictions, especially when they attach to the house.
- Work you did not know about. Inherited houses and long-held rentals often come with projects nobody can document. We buy as-is, as long as the numbers work for both of us.
How unpermitted work surfaces during a sale
Most of it is found in three places. The buyer’s home inspector sees framing, wiring or plumbing that does not look like licensed work and writes it up. The appraiser compares the house to the county assessor’s records and notices a third bedroom or a finished basement the records do not show. And the buyer’s agent searches the city or county permit history and finds nothing for a remodel that obviously happened.
Each of those creates a different problem. An inspector’s note can turn into a repair request or a price cut. An appraiser may give unpermitted living space little or no value, which can leave the appraisal short of the contract price. And a lender may ask questions about safety items, such as a bedroom with no egress window, before it will fund.
None of this is automatic. Small, well-built work often passes with a note in the file. Large or unsafe work is the kind that ends deals.
Getting a permit after the work is done
Permits come from the building department of whichever city or county has jurisdiction over the address, and each one sets its own process and fees. Fort Collins, Loveland, Greeley and the unincorporated parts of Larimer and Weld counties all run separate departments, so start by confirming which one covers your parcel.
Permitting finished work after the fact usually means applying as if the work were new, then letting an inspector see what is inside the walls. That can mean cutting openings in drywall so the framing, wiring and plumbing can be inspected, and paying a licensed contractor to correct anything that does not meet code. Some departments charge extra for work started without a permit.
Budget for the unknown. The permit fee is often the smallest part of the bill. The repairs that an inspection uncovers are what decide whether permitting makes sense.
Ask the department for a pre-application meeting first.
Disclosing unpermitted work in Colorado
Colorado sellers report known conditions on the Seller’s Property Disclosure form. Work you know was done without a permit, or defects you know about from it, belong on that form whoever the buyer is. Disclosing it up front protects you, and it lets the buyer price the issue before the contract instead of finding it during the inspection period.
If you inherited the house or bought it with the work already done, disclose what you know and say what you do not. A Colorado attorney can help with the wording if the history is murky.
We read the disclosure, walk the house ourselves and price the work into the offer.
Choosing between permitting, removing and selling as-is
Get two numbers before you decide. The first is what permitting would really cost: the fees, the drywall work, the corrections a licensed contractor would need to make, and the weeks it adds. The second is what the house would sell for with the work disclosed and priced in. If permitting costs less than the difference it makes, permit it.
Removing work is sometimes cheaper than legalizing it. Taking out a basement kitchen or a wall that created an unpermitted bedroom can return the space to what the records show. It also removes value, so run the numbers both ways.
Selling as-is skips both projects. A cash buyer prices the house as it stands, including the cost and risk of whatever is behind the walls, and you close without permits, contractors or a second inspection. You give up some price for that certainty.
Read more: Sell My House As Is Fast: Any Condition, No Repairs, Colorado →
Permitting the work before you list or selling as-is with the work disclosed.
Permitting the work before you list
- Cost Permit fees, drywall openings and any corrections a licensed contractor makes.
- Time Weeks to months, depending on the department and what inspection uncovers.
- Price Can recover full value for the space if everything passes.
- Risk An inspection can uncover more work than you budgeted for.
Selling as-is with the work disclosed
- Cost None to you. We price the work into the offer.
- Time Close in as little as 14 days, or on a later date you choose.
- Price Lower than a fully permitted retail sale, with the math shown on the offer.
- Risk Off your plate at closing. No repairs, no cleanout, no second inspection.
What to have on hand.
- Anything you have about the work: receipts, contractor names, photos
- Any permits that were pulled for other projects on the house
- The county assessor’s record for the property
- Inspection reports from any earlier sale or contract that fell through
- Your Seller’s Property Disclosure, if you have started one
How an as-is sale with unpermitted work comes together
Tell us what was done and when
Whatever you know about the basement, the addition or the wiring, and what you do not know. Two minutes with Amy or Jenny.
Get a written offer with the work priced in
After a walkthrough, you receive a written cash offer within 24 hours of talking with us about the house. It shows how we reached the number, including what we expect the work to cost us.
Close without permits or repairs
Pick a closing date as soon as 14 days out. We cover the seller’s closing costs, you pay no fees or commissions, and you leave the house as it stands.
Questions homeowners ask us.
Do appraisers look for unpermitted work?
Often, though indirectly. An appraiser compares the house with the county assessor’s records, so an extra bedroom or finished basement the records do not show stands out. The appraiser may give that space little or no value, which can leave the appraisal short of the contract price.
What happens if a buyer’s inspector finds work done without a permit?
It goes in the inspection report, and the buyer can ask for a repair, a credit, a lower price or a permit, or end the contract within the inspection period. Disclosing the work up front takes most of the surprise out of that conversation.
Do I have to disclose unpermitted work when I sell in Colorado?
Colorado sellers report known conditions on the Seller’s Property Disclosure form, and work you know was done without a permit belongs there. Disclose what you know and say what you do not. A Colorado attorney can help with the wording.
Can I get a permit for work that was already done?
Usually, through the city or county building department that covers the address. Expect to apply as if the work were new, open walls so an inspector can see inside, and pay a licensed contractor to correct what fails. Ask about any extra fee for work started without a permit.
Is it cheaper to remove unpermitted work than to permit it?
Sometimes. Taking out a basement kitchen or an unapproved bedroom wall can be simpler than legalizing it, though it also removes value. Price both routes, and price a sale as-is, before you spend money on either.
Do you buy houses with unpermitted basements or additions?
We buy them as-is, as long as the numbers work for both of us. You make no repairs and pull no permits, and the work is priced into a written offer that shows how we reached the number.
Pages that usually come next.
Sell My House As Is Fast: Any Condition, No Repairs, Colorado
Sell a Distressed Property: Any Condition, Any Situation
House Not Selling? What to Do Next and When a Cash Sale Fits
How Much Do Cash Buyers Pay for Houses? Our Offer Math, Shown
Sell My House As Is for Cash: No Repairs, No Cleanout, Colorado
Leave the permits to us. Keep your closing date.
Tell us what was done to the house and what you know about it. Within 24 hours of that conversation you will have a written cash offer with the work priced in. You pay no fees or commissions, and you choose the closing date.