Selling a House With Code Violations - [ Top 5 Tip's ]

April 24, 2020

Selling a House With Code Violations

If you have been hit with code violations by a city inspector and can’t afford to make the corrections to bring your property up to code, here we offer ways on how to sell a house in bad shape.

Selling a home with building code violations, many homeowners find out the hard way that U.S. cities have city inspectors who make random inspections looking for code violations for local properties. In some cases, it might be because of a complaint by a neighbor, while in others they might target a property where construction or renovations are underway, or it could be your community homeowners’ association that complains.

Can i Sell My House with Code Violations

Selling a House With Code Violations

Sell My House with Code Violations – Either way, inspectors have the authority to present you with a code violation notice. When this happens, you will be expected to make repairs to bring your home back up to code. If this happens and you are not financially able to make the corrections, you could find yourself in a very sticky situation.

Orders for correction are official and require your attention. While some time is given to get the changes done, the repairs needed are often expensive. They can be superficial issues such as painting your door red when your home association forbids it. However, they are often serious, very costly structural orders. A date is usually set for re-inspection and if changes are still not in compliance, enforcement actions can be taken against you.

In some cases, you might consider just selling your home, and this is when the real stress sets in. You are actually not allowed to sell your home without revealing to potential owners that your property has known violations. Good luck finding a buyer willing to take on that burden. If you are wondering how to sell a house in bad shape, here we offer advice on how to sell a home even if it has code violations.

Speak to a Real Estate Expert

Being hit with an order for correction for code violations can be overwhelming if you don’t understand the lingo. Real estate agents can be a real help when it comes to code violations. They are familiar with common issues that can arise when their clients try to sell with violations, but also run into issues that come up during home inspections.

An agent can actually meet with the violation code officer to review your correction notice. They can then review the details with you in terms you can understand. Better yet, they often can negotiate with inspectors to see if it is possible to reduce the violations. This makes it easier for you to afford the corrections required to get your home up to code.

Consider a Budget Plan to Prioritize Repairs

In some cases, you might have a list of violations that can make the idea of tackling repairs unmanageable. However, you can look at the list and prioritize repairs in order to manage them over time. If you are lucky and your code violations are cosmetic, it might not take too much cash to manage the correction. As well, your agent might be able to get a deadline extension to manage this type of correction since it doesn’t pose danger to you, visitors or other homes beside you.

In fact, you might even be handed a violation notice for something as simple as mowing your lawn. However, depending on your health, even this might be a difficult thing to manage. You will be expected to maintain your property as long as you own it.

Some common violations that get more detailed and expensive include removing asbestos, taking care of an unused pool in ill repair or an entire repainting of your home due to peeling, unsightly paint. If you can manage any of these issues, it will improve the value of your home. However, it still gets back to cost and timelines.

Other issues include:

If you base your budget plan on managing the highest priority items, you might find the costs are doable. However, if this is still too costly, you might need to find another option.

Negotiate with Potential Buyers

While we said you couldn’t sell your home without disclosing violations, it doesn’t mean you can’t actually put your house on the market. You can consider listing your home but disclose the issues to potential buyers. Of course, this is a risky solution for how to sell a house in bad shape, as many buyers won’t consider homes with serious issues.

This includes homes that pose fire hazards or that are very expensive such as structural damage or zoning issues. However, this is not to say you won’t find people willing to take on the repairs themselves. Unfortunately, these buyers will expect a considerable discount on your home. If you go this route, it will include an inspection with the buyer’s inspector to help estimate costs and assess the violations.

If the buyer is okay with what the inspector finds, they can negotiate a deal. But remember, the key word here is deal. You could find offers greatly undervalue your property, which means you could end up losing money. This could make it more difficult to afford a new home.

Work with An As-Is Investor

The more violations you have, the harder it will be to either afford the repairs or find a willing buyer. The good news is you still have one more option and that is working with an as-is investor. As the name implies, as-is investors buy your home just as it is, without the need for you to make any repairs.

They understand what they are getting into and do so willingly. They specialize in finding homes just like yours and will offer you a fair price for your home. The price is often much better than what a private buyer would be willing to offer, as they have the capital to make changes and then sell your home for top dollar.

This is a win-win situation as you sell your home to a trusted investor who is trying to help. This is a stress-free option because:

Having code violations is never an optimum situation for any homeowner, but you can still sell your home for a fair price and get the outcome you want. Call Property Sales Group today at 916-990-7374 to find out how we can make it happen for you.