Welcome to “At Home With Heidi & Sandy.” We are here to give you the inside scoop on real estate and the construction industry: what’s up, what’s down, what’s hot and what’s not. We’ll share real estate stats, home prices, building permit numbers, lending information, construction pointers and give you hints on renovations that will give you a return on your investment. There is plenty going on in the real estate industry and the construction industry and we want to share some fantastic, cool, groovy and helpful information with you. We are going to use our insight, local expertise to help you save time, money and surmount obstacles of all kinds. So, snuggle up and enjoy.
SANDY: Heidi, with so much remodeling and new construction taking place in our community, it is more important than ever to make sure a building permit is pulled. I am amazed at the number of homeowners that make improvements without pulling building permits.
HEIDI: With increased property values, owners are now looking to make improvements they may have been postponing, not realizing that even the simplest of upgrades such as changing out a water heater requires a permit. Building codes and permits exist to protect you and the value of your property.
SANDY: By pulling applicable building permits, the potential hazards of unsafe construction pertaining to health, safety and welfare are reviewed. By following code guidelines, the project will meet standards of safety and the result will be a well-built project.
HEIDI: Sandy, from the real estate perspective, when property is sold through our MLS, the owner is required to disclose any improvements or repairs and if permits and inspections were obtained on the State of AZ Sellers Property Disclosure Form, and there can be consequences if a home for sale has had modifications without a permit.
HEIDI: Sandy, what are the consequences if a permit is not obtained?
SANDY: The lack of permits can be a real problem! There are several important reasons to obtain a required building permit(s), such as the project, regardless of the age, could possibly be required to meet current building codes, the project could be condemned and be required to be torn down, all of which would be very costly to the homeowner/seller.
SANDY: Also, it is the law. Work requiring permits are mandated by local Cities and Town Ordinances. Again, work without a permit may be subject to removal or other costly remedies.
HEIDI: It can be tempting to try and skirt the permit process, and getting a permit can seem unnecessary, especially if the homeowner is handy and likes to make renovations, or they even have a friend who offers to do it. But, some improvements or short cuts are just not worth skirting the process. Again, unfortunately, when you go to try and sell your home, the lack of permits can prove to be a real problem. I have seen buyers balk at purchasing a home that does not have a permit – fearing that the addition may be unsafe or not properly done. Many times a seller has said to me, “I’m selling my home, do I need permits for work I have done?” Unfortunately, the answer is usually yes in most cases; however, confirmation must be confirmed through the applicable permitting jurisdiction.
SANDY: I sort of, kind of, almost but not quite understand the temptation of not pulling permits when required.
The temptation I am sure is something every owner faces at one point or another. Home improvements and additions are costly, the permit process can certainly seem like a pain and it can take some time to complete the process, time a homeowner may not have; however, that is no excuse for not pulling the applicable required permit.
SANDY: Another reason why homeowners do not pull permits isn’t because of fees to cities and towns, I feel they are looking to save money by hiring the unlicensed entity, whose bid is much lower than the licensed contractor and they think they will never be caught. However, if this is the case, the homeowner really needs to be concerned about this. The ramifications are huge should issues arise for unpermitted work with an unlicensed entity.
HEIDI: It is important to remember that when you go to sell your home, there normally is a home inspection and an appraisal conducted by certified professionals. This is just part of the selling process, and it helps buyers know what the potential issues could be. There are no requirements for the home inspector or appraiser to check on permits for improvements to the home. Being a good agent I always ask if there were permits pulled. It is also important to know that anything involving a gas line i.e. furnace, water heater, stove and fireplace, should NEVER go unpermitted/uninspected.
HEIDI: It is important to understand whether a building permit will be required. Sandy, how does one go about doing that?
SANDY: Building permits are granted by municipalities and each municipality has their own set of regulations as to what and when a building permit is required. Permits must be obtained before construction and/or remodeling commences. Getting a building permit is not a complicated process.
HEIDI: Over the last 25 years, I have had some interesting situations dealing with unpermitted work. Recently, I had a sale fall through where a buyer was not able to obtain insurance coverage because the seller installed a fireplace, using an unlicensed entity and a permit was not pulled. The seller had to make costly repairs using a licensed contractor and pull a building permit.
SANDY: Although safety is first and foremost in building, the fact that a permit was not pulled also indicates that corners may have been cut. The homeowner may have hired someone that was not fully qualified to do the work, or they may have been a DIY person and not really knew what they were doing.
SANDY: If you have any questions about whether or not your project requires a permit, the best way to find out is to pick up the phone and call the local building department or stop in and personally ask the question.
In summary, if people tell you that getting a building permit is something you should skip and not worry about, they are flat out wrong! Do yourself a favor and pull building permits if one is required. When it comes time to sell your home, you will be glad you did and so will your agent. QCBN
Thanks for stopping in “At Home with Heidi and Sandy.” You’re in good company.
Heidi Marshall, Associate Broker, SRES, ABR, CFS, Realtor with Windermere. You can reach Heidi at 928-830-2320.
Sandy Griffis, Executive Director, Yavapai County Contractors Association. You can reach Sandy at 928-778-0040.
And remember, if you trust someone to tear down walls, install cabinets, flooring & countertops and changing out plumbing, windows and doors, and anything else to improve your home, please hire someone who is not only trustworthy, but also licensed and reliable and will be there from start to finish. Next month, we will talk about the importance of permits for any remodeling/improvement project and how it can affect the sale of a home if there is no permit on record.
Next month, we will talk about Soil Testing requirements.
Leave a Reply