Princeton Town Topics – Let’s Talk Real Estate – August 21, 2103
SHOULD YOU REMODEL WITHOUT A PERMIT?
The practice of home remodeling without a permit is a surprisingly common occurrence, and there are a lot of good reasons why homeowners decide to forego that part of the process.
Remodeling permits cost money. Fees vary greatly, but often amount to around 1% of construction costs. Sometimes city codes pose unreasonable requirements that add extra expenses. Getting a permit is a hassle; there is too much red tape and often a backlog of applications, which can cause project delays. But bypassing the permit can have real consequences, especially when it comes time to sell the home.
According to the American Bar Association “Legal Guide to Home Renovation”, lenders often refuse to give loans on homes with permitless renovations. To correct the problem, the city may impose a large fine and require the seller to tear down the remodel and start again with a permit.
No matter what size, if you’re planning a home renovation project, avoid future headaches and make the extra effort to get a permit.
