Roughly 35% of homeowners say they would try to skip a required permit to get a renovation done faster, according to a survey of 1,000 homeowners by Clever Real Estate. Five categories of projects in particular tend to get built without the paperwork, and real estate and legal experts warn that skipping the permit on any of them can cost homeowners thousands of dollars the moment they try to sell.
The Five Projects That Almost Always Need a Permit
According to permitting guidance compiled by Redfin, drawing on contractors and design professionals who deal with local building departments directly, these projects require a permit in nearly every jurisdiction:
- Decks attached to the house or built above a certain height off the ground
- Electrical work, including rewiring or adding new circuits
- Plumbing changes, such as relocating a bathroom or adding a new one
- Window replacement that changes the window’s size or the home’s structural opening
- Structural work, including removing or adding load-bearing walls, beams, or floors
Hamid Akbari of Elmid Design Inc., quoted in the Redfin guidance, notes that permitting requirements extend well past additions and new construction. Finishing a basement, adding a secondary suite, or altering an existing deck “can involve zoning, building code, and sometimes municipal drainage requirements” that homeowners rarely think to check before starting work.
What It Costs When You Try to Sell
The financial risk shows up most clearly at closing. Sellers are legally required to disclose unpermitted work to buyers, and according to the legal reference site Nolo, an unpermitted addition can force an appraiser to value the home as though the work doesn’t exist. A two-bedroom house with an unpermitted third bedroom, for instance, “will likely be” appraised at the market value of a one-bedroom house. Buyers relying on a mortgage can also run into financing trouble, since lenders and appraisers are often reluctant to lend against square footage or systems that were never inspected or approved.
Key Points
- 35% of homeowners surveyed by Clever Real Estate said they’d consider skipping a required permit to save time
- Decks, electrical work, plumbing changes, structural work, and certain window replacements almost always require one
- Unpermitted work must legally be disclosed to buyers and can reduce a home’s appraised value
- Retroactive permits can cost hundreds to thousands of dollars and take weeks to months to obtain
Getting a permit before work starts typically costs a few hundred dollars and a short wait for inspection. Getting one after the fact, once a buyer’s inspector or appraiser has already flagged the work, tends to cost considerably more, both in fees and in what the house ultimately sells for.