Selling a house with code violations can be tough, especially if the codes violated are major. This can render your home unsellable until you fix them. This is because no buyer wants to buy a home that is flouting major construction regulations.
On the other hand, if you’re dealing with minor violations, you could choose to go ahead with the sale. However, to be in line with the law, you’d have to ensure that you review and fix any code violations.
So, here’s everything you need to know on how to sell a house with code violations.
What Are Code Violations?
There are various residential building codes on state, and local levels in place to ensure the welfare of the general populace regarding construction and residing in a home. If you don’t meet these building codes, your home is violating them.
Building codes are not set in stone and may be revised periodically. So, if your home is quite old, there’s a good chance that it’s presently violating several codes. Now, these violated codes might not necessarily mean your house is unlivable.
However, it does imply that it isn’t up to par with regulations. In addition, another area where you can be in violation is when making renovations or improvements to your home. Usually, you would have to file the appropriate permits and get them approved.
In addition, the location or placement of said improvements or new structures has to be done according to the code. If you didn’t review the code when doing this, then there’s a good chance you’re violating a couple.
What Are Some of the Common Codes People Violate?
If you’ve done some DIY upgrades or repairs, then the odds are that you have violated some codes. This would be particularly true if you’re not an expert or probably didn’t use all the right tools.
Some of these code violations can easily be fixed by repositioning or adjusting. However, certain others may require a comprehensive overhaul, affecting all or certain areas of the house.
To check whether you’ve violated any, here are some of the more common code violations:
- Not meeting fence height requirements
- Wrongly positioned smoke alarms
- Circuits and outlets without adequate protection
- Positioning exhaust fans in the wrong direction, such as venting toward the attic
- Structural inclusions to a house without a permit
- Inappropriate deck connection to home
- Adding large appliances like a new heating system to the home without a permit
- Substandard installation of old piping using polybutylene in houses from the late ‘70s to mid-‘90s
Selling a House With Code Violations
When selling a house with code violations, there are three ways you can go about it.
- Fix and sell
- Offer credit or reduce the selling price
- Sell as-is
Fix and Sell
This involves first fixing the code violations before listing the home for sale. Usually, you would have to consider certain factors like the cost, how extensive the violation is, and the legal aspect. Fixing certain violations is pretty cheap. For instance:
- Relocating a smoke alarm can be a DIY project or cost around $70 to $150 if you’re hiring an electrician
- Testing using a GFCI receptacle tester would set you back between $12 and $40
- Replacing outlets would cost around $20 each
- Swapping out an old outlet for a GFCI unit requires an electrician’s service and would set you back between $139 and $300
The more serious violations that would cost significantly more include:
- A plumbing overhaul costing between $1,500 and $5,000 depending on the material used and house size
- Fixing a cracked foundation costs around $500 for small cracks and up to $15,000 if damage is more severe
- Electric panel installation costing between $800 and $4,000
You can also choose to replace certain items rather than repair them. For instance, replacing the entire piping is advisable if the current piping is polybutylene and positioned underneath a concrete slab. This is because it would definitely be damaged after a while.
Offer Credit or Reduce the Selling Price
If the cost of bringing the house up to code is way too much to pay out of pocket, you could opt to offer a repair credit or reduce your selling price. Some of the more common credits you could offer could be that covering electrical issues, roof, and water heater.
Reducing your selling price is a strategy to attract potential buyers. However, there’s no guarantee they will stay interested once you’ve disclosed the issues. Most buyers prefer to buy turnkey homes rather than dealing with repairs.
According to the NAR, statistics from 2023 show that 41% of buyers simply didn’t want to deal with any renovations or repairs involving electricity or plumbing. So, there’s no guarantee that this approach might pan out.
Sell As-Is
An as-is sale is an excellent alternative if you cannot pay for the repairs or don’t have the time to make them happen. For instance, if you inherited a home and just want to sell as fast as possible, this option is ideal.
You can sell to a local cash buyer without repairing or renovating. You’re selling in the exact state of the house, and you can get the cash value of your property within seven days.
Who’s going to buy? We can help out with that! We buy houses that need serious repairs or are in various other conditions. At dsouzahomebuyers, we can provide you with a cash offer for your house in no time!
You don’t have to deal with any of this hassle. No need for repairs or renovations!
Fill out this form to get the process started, and we could be closing in as few as 7 days! Remember, no fees, no commissions, no closing costs!
If you have any other questions, definitely call us at (925) 503 8193.
Final Thoughts
Selling a home with code violations can be a hassle. However, it’s not impossible. Following the options we’ve detailed in this article, you will definitely find one that works for you. If you want to speed up your sale timeline and avoid repairs, consider selling as-is.
