Published on June 4th, 2023
Selling a House with Code Violations - Is it Possible In Florida?
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Code violations are one of the most dreaded things and common complaints you can hear when looking to sell your home, causing stress for homeowners. The reasons for these code violations found in your home might be a case of house flippers not doing an adequate job when updating your home in the past, which could involve improper paint, materials, or a poorly maintained lawn. Renovations performed by previous homeowners might also be the culprit. Your home might be old, or you could've done a DIY repair that wasn't up to par with the city inspector, or your builder might have missed something during construction, like an unpermitted garage.
Whatever the code violation is, it can scare off potential buyers and affect the selling price. Building code violations can be minor or could lead to major problems down the road, including fines and safety risks. Most frequently, the issue with code violations is a lack of proper permitting for various purposes or types of work, like if you have a finished basement or additions like a bathroom that you never sought approval for at city hall. For a look at your local building codes and municipalities' requirements, as well as to understand your responsibility in taking action to address these violations, check out this link for each state's office of codes.
Does your property have code violations? If the answer is yes and you’re a homeowner looking at selling a house with code violations, where do you begin? One direction is to follow tips such as addressing the concerns with a home inspection to identify anything that needs attention, for example, water damage or electrical issues. Alternatively, you might seek a solution in the form of professional services to fix the problem and obtain the necessary permits.
What are some ways you can sell your home to a cash buyer? Below are three options for selling your house because of code violations.
Selling Your Home to a Real Estate Investor Ready to Address the Code Violations In Florida
Instead of using an experienced real estate agent, you could always sell your home directly to a real estate investor or a house flipper. These investors have the financing capacity to make repairs to the electrical and plumbing issues your home has and may trust that you'll credit the cost of repairs when negotiating the offer. They may address issues such as an overloaded electrical panel or missing smoke alarms, etc.
Investors want to see a property restored to its former glory to be useful to them as a rental property or for resale on the open market; thus, they will most likely make a cash offer keeping in mind the cost of repairs and the future value of the home when it's up to date with the current code.
Selling Your Home with Code Violations Through a Real Estate Agent In Florida
While you might not get the price you were initially hoping for on your house, depending on your financial situation as a homeowner and the understanding that the seller needs to address the code violations, this might be your best option. Before jumping to selling your property as is, you will want to speak with your realtor to see if there are buyers in your area willing to fix a home with code violations and have the money to do so.
Many buyers shy away from purchasing a home with code violations, but selling a house with code violations and major repairs needed is possible as long as your real estate agent has experience in dealing with this type of issue.
Your real estate agent might advise you that a buyer will bring in a home inspector that will be familiar with local codes. The issues that home inspectors find could lead to a price reduction from the buyers.
Local Home Buying Companies Buy Homes with Code Violations In Florida
The third and final option is to sell your home with code violations to a local home-buying company. Think of these companies as house flippers. They will come in after closing, address fire hazards, meet with the violation code officer, assess the electrical panels, and make the home code compliant. Once that is complete, they will then resell the home for a profit.
Because these home-buying companies move quickly and are looking for a return on their investment, their cash offer might be lower than a real estate investor or another cash buyer.
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Selling Your House As Is With Code Violations In Florida
Selling a property with code violations will often lead to interest from buyers like real estate investors, house flippers, or those who are willing to pay cash for a home that's not in perfect condition. The reason that these buyers will most likely pay in cash is due to the fact that many mortgage lenders will not be able to write a mortgage on a house with code violations, making a cash buyer your best option. This could range from issues in the design of the home, such as missing handrails, to unpermitted bedroom additions.
Cash buyers generally will be better equipped to deal with a code violation and be able to meet new building codes in a timely manner as per the law. Some of the most common code violations you will find in homes that are being sold as-is to a cash buyer include the following:
Expansion Tank - missing an expansion tank can be catastrophic and a big concern. These tanks are vessels placed inline in a closed hot water plumbing system that helps protect against leaks from the expansion and pressure of hot water heaters.
Window Issues - Windows that don't close properly, have cracks, or are not sealed to the wall correctly. Problems like these can pose a risk to the occupants and the structure of the house.
Rooms Added without Proper Permits - Adding an addition to your home or finishing off your basement without permits can cause zoning issues and other code violations.
Asbestos - Many states require that prior to removing asbestos from your home, you get the proper permits and dispose of it properly.
Code violations can be minor, like improperly vented exhaust fans, or outlets in dangerous locations, or something major, like improper wiring throughout your house or structural damage. Deciding between fixing these issues or selling your home as is, is something you will need to discuss with local real estate agents.
No matter how you choose to sell your home because of code violations, know that it is possible. For more information on how to do so, please check out our blog.
Recent Facts
1. A code violation is a violation of a local or state building code, health code, safety code, or other code that is enforced by a government agency.
2. A code violation can be issued for a variety of reasons, such as a building that is not up to code, a health hazard, or a safety issue.
3. A code violation can be issued by a local or state government agency, such as a building department or health department.
4. A code violation can result in fines, repairs, or other penalties.
5. In some cases, a code violation can prevent a homeowner from selling their house.
6. If a house has a code violation, the seller must address the violation before they can sell the house.
7. The seller must either repair the violation or obtain a waiver from the local or state government agency.
8. The seller may also be required to obtain a Certificate of Occupancy from the local government agency.
Recent Statistics
1. Approximately 1 in 5 homes in the United States has a code violation, according to the National Association of Home Builders (NAHB).
2. About 25% of all code violations are related to safety issues, such as fire hazards or structural issues.
3. The average cost of correcting a code violation is $2,500.
4. In some cases, code violations can lead to fines of up to $500 per day.
5. In some states, such as California, code violations must be disclosed to potential buyers.
6. In some cases, code violations can reduce the sale price of a home by up to 10%.
7. In some cases, code violations can lead to the home being placed in a code enforcement lien, which can make it difficult to sell the home.
8. In some cases, code violations can lead to the home being placed in a receivership, which can make it difficult to sell the home.
Chris Charles
Author | Real Estate Investor & Realtor
My name is Chris, and my team and I buy all sorts of houses in Florida. We are a local, family-run business committed to the highest standards of quality and integrity.
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