How to Sell a House With Unpermitted Work in Missouri

Unpermitted additions, garages, and electrical work can kill a traditional sale. Here's how to handle it.

Unpermitted work is one of the most common issues that complicates home sales in Missouri. Whether it's a finished basement, an added bedroom, a detached garage, or electrical or plumbing work done without a permit, unpermitted improvements can make it very difficult to sell through traditional channels.

What Is Unpermitted Work

Unpermitted work is any construction, renovation, or improvement that was done without obtaining the required building permits from the local municipality. This includes structural work, electrical, plumbing, HVAC, additions, and in some cases even certain types of cosmetic work.

Why Unpermitted Work Is a Problem

Lenders typically require a home appraisal before approving a mortgage. Appraisers are trained to identify unpermitted work, and when they find it, they typically either exclude it from the appraised value or flag it as a condition that must be resolved before the loan can close. This can kill a sale or significantly reduce the price.

Your Options When Selling With Unpermitted Work

You have several options: obtain retroactive permits which may require bringing the work up to current code, disclose the unpermitted work and reduce the price accordingly, or sell to a cash buyer who isn't constrained by lender requirements. Cash buyers can purchase properties with unpermitted work as-is.

How We Handle Unpermitted Work

At Midwest Equity Advisors, we regularly buy properties with unpermitted work. We factor the cost of permitting or remediation into our offer and handle everything after closing. You don't need to pull permits or make any changes before selling.