If your home has building code violations, you may be wondering if you can still sell. The answer to this question is not that simple. It will depend on the violations and the potential buyer.
What Are The Code Violations?
Building code violations vary from minor to severe. Some of these violations require a simple fix while others require major repairs that will cost a lot of money. The most common violations related to homes are:
• Incorrectly placed smoke alarms
• Handrails that are not turned and do not end in a wall
• Bathroom exhaust fans that vent into the attic
• Missing or improper flashing on decks
• Defective or missing ground-fault circuit interrupters
If your building code violation is minor, you should look at repairing it. This will make the sale of your home much easier as you will be able to advertise without any worry. If the violation is large, you could still sell, but your options will be limited.
Buyer Financing Considerations
If you cannot remedy the building code violation, you need to look for the right buyers. Ideally, you will want to sell the property as is to a cash buyer. This will reduce the chances of them not being able to get financing for the purchase. You will also need to look at reducing your asking price to make the property more attractive to these buyers.
If you have a potential buyer who needs to get traditional financing, this can be harder for a property that is not up to code. Certain types of mortgages such as FHA loans will not allow buyers to purchase any properties with certain violations. These violations include outdated electrical panels or unpermitted converted garages. If your violations do not fall into the once not covered, your potential buyer might not have any issues.
While financing can be harder to get for code violation homes, the insurance buyers need can also be an issue. Home insurance for these properties will be much pricier than usual and this can push your home out of the potential buyers’ price range.
Do You Have To Disclose Code Violations?
Most states require that you disclose any known defects in the house to the potential buyer. This will need to be done in writing. If you are in a state that does not require this by law, it is still a good idea to disclose.
These violations and other defects will come to light when a home inspection is carried out. If you have not disclosed and the buyer finds out later, your deal could fall through. Being upfront about the violations will save you and the potential buyer a lot of time.
If your home has building code violations, you should try and remedy them before you sell. While you can sell the property with these violations, the process will be harder as you need to find the right buyer. You can either sell your house as is to a cash buyer or you need to find a buyer with a mortgage lender who is willing to provide financing for a property with violations.