Selling a House with Code Violations - Is it Possible?

Published on April 3rd, 2023

Code violations - are one of the most dreaded things you can hear when looking to sell your home. The code violations found in your home might be because house flippers didn't do an adequate job when updating your home in the past, your home might be old, or you could've done a DIY repair that isn't up to par with the city inspector, or your builder might have missed something during construction.

Whatever the code violation is, it can scare off potential buyers. Building code violations can be minor or could lead to major problems down the road. Most frequently, the issue with code violations is a lack of proper permitting, like if you have a finished basement that you never sought approval for at city hall. For a look at your local building codes, 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 looking at selling a house with code violations, where do you begin?

What are some ways you can sell your home to a cash buyer? Below are three options for selling your house with code violations.

Selling Your Home to a Real Estate Investor Ready to Address the Code Violations

Instead of using an experienced real estate agent, you could always sell your home directly to a real estate investor. These investors are in the financial position to make repairs to the electrical or plumbing issue your home has, including 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; 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.

While you might not get the price you were initially hoping for on your house, depending on your financial situation, 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

The third and final option is to sell your home with code violations to a local home-buying company. Think of these companies are 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.

Selling Your House As Is With Code Violations

Selling a property with code violations often will 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 perfect. 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.

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. 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.

• 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 that you attain the proper permits and dispose of it properly.

• Code violations can be minor, like improperly vented exhaust fans, 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 with code violations, know that it is possible. For more information on how to do so, please check out our blog.