OfflineHello, I'm a newbie. I started 6 days ago on the "30 Days to Real Estate Cash" blueprint. I've been informed by my agent that there are a number of properties on the market that have been on the market for some time. It seems they haven't being sold due to permits. Can someone enlighten me on how permits work in real estate terms? I've attempted to search online, but nothing has come up yet that makes sense to me.
I'm wondering if I could get involved with these homes to make the sales happen.
Any input would be greatly appreciated.
Thank you!
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The sky is not the limit; there are no limits. There is no box.
There can be various problems with permit issues; previous owners could have taken out a permit to do work, roof, A/C, additions, etc. & have had the work completed but never had the final inspections; therefore leaving an "open" permit" It can be difficult to get these existing open permits inspection & closed out, due to the length of time, code changes, etc.
Another problem can be work that was done, but the previous owner never obtained a permit; now the county wants an "after the fact permit". They are not only more expensive but if there have been code changes over the years, the whole job might have to be torn out & started from scratch.
We have had occasions where no permits were taken, but the county still collected property taxes on the improvements, but code enforcement dept. did not care & fined us $ 250 per day if it was not brought up to code within 30 days.
The reason they have on the market a long time is because it takes a lot of patience, time & money to get thru the red tape ... not something I would recommend just starting out.
As a newbie, do not try to get involved with buildings with permit issues -- it can be very difficult -- costly and time consuming. You are at the mercy of a slow time table and much red tape. Not recommended for the faint of heart.
Gary is on the money.depending on the severity of the violations it could be a quick fix or it could be very complicated. I bought a home in FL that had 4 violations on it but before I closed on it I did my home work. I contacted the building dept to find out what the problems were and what the fines added up to and what I needed to do to bring the home to code. I used that as a bargining chip with BOFA who was holding the property. I got them to reduce the price and i accepted responsibility for the fines. I was told that if I found an architect to draw up plans and and i did the repairs to bring it to code and he signed off on them I wouldnt have to tear down the additions that were put on without permits. I dont know what your strategy is so Just be carfeful and do your home work.
best of luck!!
Richie
Never EVER give up!!
Thank you all so much for your advice. It has helped a lot.
I tried to reply to you all individually but the "captcha' on the replies don't seem to want to cooperate!
The sky is not the limit; there are no limits. There is no box.
I have been a general contractor for 40 years and getting permits approved can be a trying procedure, but I have found that with the right attitude it is not difficult to get want you need from the city building department. My experience tells me that what the city official want most of all is to protect the public from unethical builders and home owners who try to cut corners and pass on faulty work to the next buyer. If you have an attitude of wanting to do the job right and seek the city's help in seeing that things are done right then city official are usually very accomodating. If they know you are new and just want to bring the property up to code they will assist you in doing so and not try to make it any more difficult than necessary. If you go in to talk to them angry and demanding they will make it tougher on you. Ask for their assistance. Let them know you want it to be right and show gratitude and you will get the help you need. Also, talk to them up from before making your offer and find out what needs to be done so you can negotiate the costs into the deal in the beginning.