A few days ago in a post "House Flippers Beware-Do You Know about the 90 Day FHA rule" I mentioned a couple of the issues that investors and buyers were encountering when trying to flip or buy a flip in this market.
The second issue we are now finding is that the properties are being renovated without permits. Now I understand if you are just putting in new kitchen cabinents or re-tiling a bathroom you don't need a permit. But most of the "flip" properties are going through serious rehab. New electric, new plumbing, new kitchens, new bathrooms or new windows are just part of the list. Yet recently when I asked for and then starting searching for building permits on a couple of the properties my client was interested in we learned that none had been issued.
There is no way of knowing whether any of the heavy duty work was done by a licensed contractor with the appropriate skills. Obviously a home inspector can help determine whether the work appears to be done correctly but should the county come knocking at some point down the road the new owner may find themselves with a financial burden if the work doesn't meet code.
For a list of work that requires permits in Prince William County you can check the website PW Home Improvements-Do I need a Permit? If you are a buyer make sure your agent is checking for and asking about permits. If you are an investor about to undertake a rehab project don't take short cuts that might end up cosing you more in time and money than you had counted on.
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