The Possible Money Pit

Many consumers are not fully aware of the costs associated with not pulling permits (structural, electrical, plumbing). Since unlicensed contractors can't pull permits for home improvement projects, it’s important to hire a licensed contractor and get the proper permits. For many “DIY’rs”, acquiring permits with the latest regulations and codes can be intimidating or it’s just a matter of saving money and they skip it all together. But are you really saving money?  

The repercussions to the homeowner when permits aren't pulled on time or at all can be evident at time of selling the property. The house most likely won’t pass inspection. Insurance policy modifications or changing companies often require a Certificate of Occupancy. If the certificate doesn't show structural changes that have been made, the insurance company can decline coverage because it's not code compliant. Any permits pulled after work has already been completed include a fine that doubles what would have been the initial costs of pulling a permit before work was done.

On the flip side of that, many new home buyers who take the precaution trying to know what they’re getting themselves into including having a pre-inspection along with City Property Tax documentations before finalizing the paperwork may be buying into a money pit. We found that out in a 1935 home we remodeled that was sold with an existing addition with a 2^nd story that later revealed it was illegally added to the original structure. The addition was built on top of an original carport and the only thing that was holding that side of the house up was the roof connection – YIKES! We also found 60 electrical code violations in one room itself, amazing that the house never burned down. There were joists that were not connected and plumbing placed haphazardly. It was a hack job. In order to properly put the house back together we had to install micropile piers placed into the foundation and reinforce the foundation to hold the structure and basically start over. Because the previous homeowner’s had built the addition decades before the statute of limitations was expired for any legal retribution. This cost the new homeowners thousands of dollars that could have been spent elsewhere on the remodel, let alone all the headaches and delays. It’s just not fun to spend money on things hidden behind the walls and flooring. Yet, the house is now safe and structurally sound for occupancy. Lesson learned: do your due diligence and do it some more.