Gary L. Waters Broker Associate, Bucci Realty, Fifteen Years Experience in Brevard County (Bucci Realty, Inc.)

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Rainer
42,255
Fred Hafdelin
Weichert Realtors - Mountain Lakes, NJ

I would have the town inspect the bedroom and bathroom and tell you what needs to be done to bring the additions up to code. Maybe not so much as to kill the sale.

Jan 26, 2016 02:32 AM
Rainer
222,206
Caroline Gerardo
CMG Financial - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

First time buyer using FHA loan is going to be a struggle. Call the permit desk of the county and find out what it will take for seller to get permit and bring to code. Put in the offer the seller has 10 days to pull the permit and complete the inspections. Make buyer contingency 21 days and don't order an appraisal - wait and see what county says. Get a building inspector who is a licensed contractor to look at what they did, and a cost to cure any health and safety code violations. Buyer might be able to do a 203k (get money to fix it or Homestyle conventional - a mini contruction loan) Problem is 1st time home buyer is going to need MANY extra hours to get this deal done. Buyer should be ready to work with a contractor and fix all the things that are hidden. Does seller live in property? IF seller does not reside in property assume that nothing works

Jan 26, 2016 02:44 AM
Rainmaker
796,857
Liz Wallace
Century 21 Sherlock Homes - Rockville Centre, NY
Broker C21 Sherlock Homes, Rockville Centre, LI, N

There are just so many things about this transaction that are bad.  FSBO, no permits, maybe no possibility of permits, first time buyer, who pays commission, etc.etc.  This makes Pandora's box look like a toy.  Both of you should be running.

Jan 26, 2016 02:44 AM
Rainmaker
680,444
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Is there a way to have those rooms retroactively permitted 'as built' by your city? If so, it may not be as huge a deal, and perhaps you can negotiate for seller to spring for the cost of the permits and whatever it will take to get them there. It otherwise is a numbers game - is your buyer getting a sufficiently good deal to mitigate this?

Jan 26, 2016 02:42 AM
Rainmaker
984,394
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Yes and yes. I limit to cash only buyers on these issues by going to county checking out permits etc. In one case it had 3 redtags on it. They tried short sale in the past but too complicated..... 

Jan 26, 2016 02:34 AM
Rainmaker
3,240,987
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Discuss the issues, the ramifications, the options, the whys, the hows and more with your buyer(and make sure the lender is aware if applicable).  Let him/her/them decide.

Jan 26, 2016 10:49 PM
Rainmaker
1,521,521
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Advise your buyer to run, if they don't get it; step away. You don't need to be involved in a E & O Claim even if you can document notice. Your E & O carrier will not forget.

Jan 26, 2016 05:08 AM
Rainmaker
743,532
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

FSBO AND AUCTION.

Your buyer has made DELIBERATE choices to go onto the thin ice.

Advise the buyer this will be a CASH deal and advise regarding what will happen when the buyer decides to sell. Get YOUR disclosure signed.

Some people can not be protected from themselves.

Jan 26, 2016 04:25 AM
Rainmaker
534,200
Tony Lewis
RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident - Valencia, CA
RE/MAX Valencia, Stevenson Ranch, Santa Clarita

Speak with the seller, see if they want to list with you and let them know you'll help get everything straightened out for them and keep them from being sued.  Start there, if they won't list you need to do everything possible to prevent your client from buying under the current condition.

Jan 26, 2016 03:30 AM
Rainmaker
998,995
Corinne Guest
Corinne Guest, REALTOR® | Barrington Realty Company - Barrington, IL
Barrington Lifestyles

It still has to be the buyers decision. They must know of the consequences down the road, selling maybe? Make sure they really do understand what might go wrong, likely they'll want out.

Jan 26, 2016 02:48 AM
Rainmaker
729,850
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

It depends. Price could be a factor. Or if it's on well and septic, I would be curious about the size of drain field. Auction properties are usually " as is". If the work looks like it was done properly, and the price is right, I wouldn't care about permits. That can be inspected and upgraded later if need be. Check HVAC, furnace size, plumbing, electrical, etc. Ask buyer if he has any construction experience. If it was an addition to a house, i would also be curious about the insulation, and maybe check attic above. Check foundation also if it was an addition.

Jan 26, 2016 02:41 AM
Rainmaker
519,268
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Gary,
That is a common situation here in Colorado.

# 1 What is your first time buyers tolerance and willingness to work on this issue?

# 2 Is the house worth the trouble or can you easily find another one for them?

 

# 3 Here, it is fairly easy to get retroactive permits.

Jan 26, 2016 02:34 AM
Ambassador
4,056,346
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Always a solution for every problem, however first time buyers may not be up to the challenge.

Apr 20, 2019 10:17 PM
Rainmaker
797,159
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Gary - We have a lot of home owners doing their own remodels, additions, here in my area of AZ. When this is the case, I let my buyers know that it probably has not been permitted, and most of the time, it will have to be. Buyers typically ask me to show them other homes at that point.

Jan 28, 2016 02:57 PM
Ambassador
2,758,460
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 Good morning Gary. Perhaps you can have the property evaluated by the local codes department to see if it meets their minimum standards.

Jan 26, 2016 05:41 PM
Ambassador
3,673,447
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

That certainly is something that you have to share with your client and let them decide.  A lot depends on where the house is.  Here in DC, there are entire home renovations that have been done with no permits.  And when people went to the trouble to get permits, they were usually misfiled.

Jan 26, 2016 12:13 PM
Rainmaker
2,763,575
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Non Permitted additions are not that big of a deal in my market. If the work appears to be done well and an inspector finds no issues ... it would not be a deal breaker unless the buyer decided it was.

Jan 26, 2016 11:50 AM
Rainmaker
1,523,566
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

I would tell them that they need to check with a real estate attorney and I would encourage them to run not walk away from this FSBO. 

Jan 26, 2016 09:06 AM
Rainmaker
724,354
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Your buyer should consider consulting a real estate attorney.

Jan 26, 2016 07:59 AM
Ambassador
3,043,125
Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

Ouch! I've seen it happen all to often.

Jan 26, 2016 07:58 AM
Rainmaker
526,059
Mike & Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

Depends upon several things...

What is quality of a non-permitted add on?  Looks professional or cheesy?

What is the purchase price?  low end or high end?

Is this typical of the neighborhood?

Either way...

I would write the offer subject to the seller getting it permitted.  We have many times gotten the seller to pull permits after the fact...most have not been as big a deal as expected.

Eve

Jan 26, 2016 06:28 AM
Rainmaker
3,977,611
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

In my area, many thingss do not need a permit.  I would inform the buyer.  Talk to the governing authority and if you get past all that have a home inspection done.  Just because there was not a permit doesn't mean the structue ins't good

Jan 26, 2016 06:22 AM
Rainmaker
1,366,927
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC Since no permits were pulled, it may be an issue of being built to code. Fred Hafdelin has a good answer.

Jan 26, 2016 04:40 AM
Ambassador
3,914,717
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Sounds pretty risky to me, and who knows what else is not being disclosed

Jan 26, 2016 04:24 AM
Rainmaker
4,796,551
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I would ask if the seller is willing to rectify the permit issue.

Jan 26, 2016 04:17 AM
Rainer
187,245
Sharon Altier, SFR
Lawton Realty Group, Inc. - Elmhurst, IL

Many additions and rehabs have been done without permits and do not cause a problem.  As Fred said, have someone inpect it.  As long as there are not any problems, don't worry about it.  Many times rehabs over 10 years old (when most people did them without permits), would already be showing problems,  if any.  Make sure you get all properly signed disclosures, so that you can deal with any other problems that pop up.  Good luck!

Jan 26, 2016 04:10 AM
Rainer
30,922
Cheri Long
Metro Brokers/Priority Properties, Inc. - Centennial, CO
Metro Denver Realtor- Your Home is my PRIORITY

Have an inspection by the city done as a post permit type at the seller's expense.  Then you will know what needs to be addressed in an inspection list.  

Jan 26, 2016 04:08 AM
Rainer
136,933
Richard L. McKinney P.A.
Atlantic Shores Realty Expertise - Port St Lucie, FL
For Results that MOVE you on the Treasure Coast!

Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC 

I had similar situations in the past including one with a roof that was not permitted after the 2004 hurricanes. 

In your case, it sounds like the seller did not know about the permit issue. So I would focus on the solution and send a contractor out for an estimate on getting it permitted. Tell your buyer that once you have the contractors estimate and opinion on workmanship, he will be able to make an educated decision on the purchase. 

This way you are helping both parties achieve a win / win. If your buyer ends up canceling you may still pick up a listing from a thankful seller. 

Jan 26, 2016 03:57 AM
Rainmaker
291,467
Jack Lewitz
IL Real Estate Specialists - Evanston, IL

I am a little confused about the seller. Did he purchase a foreclosure at a Auction? Is he an invstor buying a Non Performing Note? Is he an out of state seller or local person? Many investors buying and flipping foreclosures or NPN are not that interested in curing work done without a permit. Most are sold As Is and for a first time buyer it can be a nigthmare.

Jan 26, 2016 03:04 AM
Rainmaker
863,526
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

I  will try to find out what is the seller's motivation now that non permitted additions have been brought to light. Do I hear lower offer? Contact an appraiser and try to determine what is the actual value of the property and if non permitted are even to code. The seller might even use your services as an agent. Good luck on this one.

Jan 26, 2016 02:57 AM