Selling a house with code violations can be a complex and daunting process. While you can definitely sell, it’s important to understand the potential challenges and limitations involved when you have a housing code violation.
Code violations happen when a property doesn’t follow state and local safety, building, or zoning regulations. Violations can range from easily fixable issues like missing smoke alarms to major problems like faulty wiring or unauthorized renovations, which might lead to fines or require repairs before you can sell your property.
This guide will go over the ins and outs of selling a home with code violations in Florida and help you navigate these often complex real estate transactions.
If you find yourself wanting to sell a house with code violations, you might want to consider a cash buyer like Florida Cash Home Buyers. We purchase homes as-is and can also buy properties with code violations. Request a quote today.
The Limitations of Selling a Home with Code Violations
Selling a home with major code violations significantly impacts the selling process. These code issues can reduce your home’s value, limit potential buyers, and complicate the transaction.
Some of the key challenges include:
- Reduced home value: Code violations can decrease a home’s value due to the cost and effort required to address the issues.
- Lack of traditional financing: Homes with code violations usually don’t qualify for traditional mortgages, since lenders often require properties to meet certain safety and condition standards.
- Smaller buyer pool: Buyers might be intimidated by the extent of repairs needed to fix code violations, and most are looking for move-in-ready properties. On the other hand, real estate investors and cash buyers might be more interested in properties with code violations.
- Additional paperwork: Sellers are legally obligated to disclose any known code violations to potential buyers. In Florida, this involves additional paperwork like a Seller’s Property Disclosure Statement and/or a Lead-Based Paint Disclosure or a Municipal Lien Search Report to ensure all compliance issues and hazards are properly disclosed. Failure to properly disclose information can lead to legal complications.
The extent of the violations and their resolutions largely determines the best selling option for you. Fixing minor code violations may make selling through traditional methods more profitable, but major violations could make it more practical to sell the property as-is to a cash buyer.
What Are My Options for Selling a Home with Code Violations?
Despite the challenges, you have several options for selling a home with code violations. Here are some selling options to consider and the pros and cons of each.
Sell As-Is to a Cash Buyer
Selling your home as-is to a cash buyer can be a quick and easy option. Cash buyers typically buy properties “as-is,” meaning in their current condition, so there’s no requirement to make repairs or secure financing. This can be especially good if you need to sell fast or if the cost of repairs is prohibitive.
The pros of a selling to cash buyer include:
- Fast closing: Cash buyers can often close on your house fast — in just a few weeks.
- No need to handle repairs: You won’t need to invest in repairs before selling, no matter how serious the violations are.
- No appraisal required: Cash buyers don’t typically require an appraisal.
The cons of a cash buyer include:
- Lower offers: Cash buyers may offer a lower price than you could potentially get in a standard real estate transaction — typically about 20% below market value. However, this accounts for repairs so that you don’t have to spend time or money making them.
- Limited negotiations: Offers they make are often final, so there’s less room to negotiate.
Before moving forward with a cash buyer, check out their website for customer reviews, and ask for proof of funds to ensure they can close the deal.
If you work with Florida Cash Home Buyers, you won’t have to worry about we buy houses scams — we pride ourselves on being completely transparent about how our process works and how we calculate legitimate cash offers.
If you’re wondering how much you’ll lose selling a house as-is, check out our in-depth analysis which breaks down different scenarios and covers the pros and cons.
Make Repairs Before Selling
If you’re willing to invest in repairs, you might be able to increase your home’s value and attract a wider range of buyers. But it’s important to focus on addressing the worst offenders, as in major code violations and safety issues.
Cosmetic DIY updates or unnecessary upgrades might not provide a good return on investment, especially if you’re leaving glaring structural problems untouched. Think practically — what would be most important to the new property owner? Usually, safety and function trump everything else.
The pros of making repairs before selling:
- Increase property value: Addressing code violations and making necessary repairs can increase the value of your home.
- Attract more buyers: A home in good condition that meets all building codes is always more appealing to potential buyers.
The cons of making repairs before selling:
- Upfront cost: Repairs can be expensive.
- Uncertain return on investment: There’s no guarantee that you’ll fully recoup the cost of what you invest in repairs and improvements.
Negotiate with Traditional Buyers
You might also be able to negotiate with traditional buyers about the violations. For example, you might offer repair credits or price reductions to help close the deal.
This gives buyers the flexibility to handle repairs on their own terms, which might appeal to some. It also expedites the transaction, avoiding delays from pre-sale repairs. However, you might still run into financing issues or difficult negotiations.
The pros of selling to traditional buyers include:
- Flexibility in price and terms: Negotiations can lead to agreements that meet both buyer and seller needs.
- Can attract more buyers: Offering concessions may attract buyers who would otherwise hesitate.
The cons of selling to traditional buyers include:
- Potential financing issues: Buyers might have a hard time getting financing for homes with significant violations.
- Additional requests that prolong closing and reduce sale revenue: Traditional buyers are working with real estate agents who are looking out for the buyer’s best interests, so they might ask for more repairs and concessions, which could prolong the closing process.
- Home inspection negotiations: Home inspections can lead to additional repair requests or credits.
Offering a cash credit to a buyer might be your best bet because it lets the buyer handle repairs themselves, avoiding disputes and additional requests.
Common Code Violations by Severity
Some code violations are minor and easy to address — others, not so much. Major code violations can present big safety risks or legal issues. These are some of the common code violations homeowners face, categorized by severity.
Minor violations include:
- Missing handrails or guardrails: These can increase the risk of falls, especially on staircases or elevated areas.
- Peeling paint: Peeling paint is a common violation that can lead to further deterioration in the home, and, in some cases, pose health risks if the paint contains lead.
- Outdated smoke detectors: Another common violation, outdated or missing smoke detectors means occupants aren’t alerted in the event of a fire.
Moderate violations include:
- Faulty electrical wiring: Issues with electrical systems or overloaded electrical panels can lead to fire hazards, electrical shocks, and other serious safety risks, and often need immediate professional repair.
- Leaky plumbing: This can cause water damage, mold growth, and even structural damage if left unaddressed.
- Improper ventilation: Poor venting can reduce indoor air quality by limiting fresh air circulation and allowing pollutants to accumulate.
Major violations include:
- Structural damage: Structural damage constitutes a serious violation because it compromises the safety and stability of a home, often involving issues with the foundation, roof, or walls.
- Unpermitted additions: Unauthorized renovations or changes to the home can lead to both legal issues and safety concerns.
- Mold or asbestos: These are significant health hazards and can lead to serious respiratory issues and long-term health problems if left untreated.
How to Check for Code Violations
Before you move forward with selling your home, make sure it complies with your local building and safety regulations. Checking for code violations at this stage helps you avoid potential fines, legal issues, or expensive repairs, and, most importantly, keeps everyone safe.
To check for code violations in your home, you can:
- Check your municipality’s website. Most local governments have online portals where you can check for code enforcement cases or liens against your property.
- Review local building codes. Understanding local building codes will help you identify potential problems.
- Consider a home inspection. A home inspector can help identify hidden issues or code violations that aren’t obvious to the untrained eye.
- Verify permits. Ensure that any renovations or additions were permitted by the proper authorities.
- Contact your local code enforcement office. They work with homeowners to ensure compliance, so they can provide both guidance and assistance with getting your home up to code.
- Look for visible signs. Be aware of signs like exposed wiring, water damage, or unauthorized renovations.
In Florida, unresolved code violations can have serious consequences for homeowners, including fines, liens on the property, and even legal action.
Making the Right Choice for You
Deciding how to sell your home with code violations requires careful consideration. Factor in things like:
- Your timeline: If you need to sell quickly, selling as-is to a cash buyer may be the best option.
- Your financial situation: If you need money quickly, a cash buyer might be the way to go. If you can afford to wait and make repairs, investing in your home could increase the sale price.
- Professional advice: A real estate professional can help you understand the legal implications and paperwork involved with your potential home sale, which can clarify the best course of action for your property.
Post-Sale Responsibilities and Legal Liabilities When Selling a Home With Code Violations
Sellers are obligated to be up front with buyers about any code violation they’re aware of. This includes disclosing issues that might affect the property’s value or safety.
Additionally, sellers must make sure all outstanding fines or liens related to the property are cleared before the sale is finalized or the buyer agrees to adopt the lien. If the buyer does not agree to adopt the lien, they should verify that the lien was cleared during closing so they don’t inherit any unexpected financial obligations.
After the sale is completed, buyers become responsible for any code violations that were disclosed by or inherited from the previous owner. New homeowners should work with local authorities to bring the property up to code, which might involve obtaining permits and completing repairs, and address violations promptly to avoid fines.
If a seller failed to disclose known code violations, the buyer may have legal recourse, potentially seeking compensation for repair costs.
We Buy Houses with Code Violations
Trying to sell a home with code violations is not easy, but it’s certainly not impossible. If you understand your legal responsibilities and explore your options, you’ll get through to the other side.
Whether you’re selling as-is, negotiating repairs, or resolving the violations yourself before listing, being transparent with buyers and addressing any legal or financial implications is key.
And if you’re feeling overwhelmed, don’t stress — let us help you. At Florida Cash Home Buyers, we offer a quick and hassle-free solution. We’ll purchase your property as-is for a fair price, so you can skip the costly repairs and financing hurdles. Contact us today for a no-obligation quote.