You just bought your new home and you got a great deal because it was a foreclosure property and a fixer-upper. Now it's time to make this home truly yours. Where to begin first? It's suggested that before any work is done you must obtain remodeling permits.
By law, most cities require homeowners to apply for building permits before any modifications are done to their homes. Different projects require different permits and these permits vary from one city to the next, as well as the enforcement of these permits.
These days everything revolves around the all mighty dollar and with remodeling come fees that are charged when a building permit is issued. As a home owner makes improvements to a home there is an added value that is attached to these improvements and as a result this often creates an increase in the assessed value of the property. Therefore building permits can result in an increase in the homeowner's property taxes based on the improvements made to the home.
The permit process is not always an easy process which can often involve inspections to make sure that work is done properly, correctly and in compliance with local building codes. With this process there are frustrations that can result from doing some remodeling such as dealing with the scheduling of inspections as well as waiting for inspectors to arrive.
Often, home owners try and save time and money by skipping the permit process. However, doing so can have some serious consequences.
Once a homeowner hired a contractor to make a studio apartment from a shed in the backyard for his son to live in and the contractor did the work without a building permit.
Unfortunately, when the home owner sold the property he disclosed to the buyer that the work done for the apartment was done without a permit. California law requires that homeowners need to disclose any work they've done without a permit to potential buyers.
Before the home was sold, the buyers contacted a city building inspector to see what, if anything could be done to make the apartment a legal structure. Sadly, the building was so far outside of building code that the only cost effective thing to do was to tear it down. Therefore, the seller had to lower the price of the home based on the appraisal of the property after the loss of the apartment as well as the cost of demolition.
It's important to get a history of any permits for a property from the city building department before you commit to buying. If no permits can be found for significant changes to the property then it's up to the potential buyer to ask the sellers for an explanation and to find out what impact this might have on the sale of the home.
The buyer may potentially incur costs down the line if they buy a home that was renovated without proper permits. If they happen to try and improve an area that already had work done from the previous owner and it's discovered by an inspector it could create a huge headache for the new home owner and furthermore they might also be liable for any penalty fees for the previous work.
So, when you are ready to make improvements to a home, before you sell or after you buy, always make sure that the first thing you do is obtain permits. Like the old saying goes, "You can pay now or pay later."