It’s important that your home is up to code, meaning there aren’t any code violations that could pose a safety threat to the inhabitants of the home or potential buyers. When your property isn’t up to code, you’re going to have some difficulty selling a house with code violations, but it isn’t impossible.
A 2021 real estate survey reveals that it’s a strong sellers market in much of the country and the likelihood of getting your property sold, regardless of code violations, could be easier than you might think. There are a few options available that can make this situation less stressful.
1. Make repairs
After receiving the home inspection report, it can be pretty disconcerting when you find out your house isn’t up to code. You might even start to wonder if your house is even sellable! Fortunately, most code violations are relatively easy to repair and won’t cost an arm and a leg. Some of the most common violations include:
- Smoke alarms aren’t in the right location or there aren’t enough in the house
- The ground-fault circuit interrupters for the kitchen, bathrooms, garage and outside outlets are faulty or missing.
- Exhaust fans lead to the attic and not outside, which could lead to mold, wood rot and a slew of other problems if not repaired.
2. Reduce the listing price
Repairing code violations that don’t pose an immediate threat to the safety and health of the occupants can be delayed. For these violations, you have the option of reducing the asking price to reflect the repairs that the new owner would have to make. If you don’t want to do that, you could offer the buyer a repair credit so they can get the repairs done.
Just keep in mind that typically buyers aren’t going to want to buy a house that needs work – no matter how small they may be. Turn-key homes tend to get sold quicker than those that need work and if you’re in need of a quick sale, this may not be the route for you.
3. Sell the house in “as is” condition to a cash buyer
Sellers want to get the most money they can for their properties, which is completely understandable. You spend years making the house a home and probably pour lots of money for upkeep and even renovations. Yet, if there are code violations, you’re probably not going to get the full asking price, let alone a quick sale.
In this type of situation, you could choose to list your house as an “as-is” property. This means the buyer will buy the house regardless of the state it’s in and you, the seller, aren’t responsible for any repairs. If your property is in a highly desirable area, this may be an appealing option for investors or flippers who are going to pay cash – albeit at a lower price.
Is it possible to sell a house with code violations?
2020 was a difficult year, but 2021 is proving to be a great year for people wanting to sell their homes. There are a lot of buyers and not enough houses to satisfy demand. So when a house does come on the market, buyers are extremely competitive and are willing to go above asking, get into bidding wars, and even buy fixer-uppers. A house with code violations has a good chance of selling as quickly as other homes nearby – albeit at a lower price. If you’re struggling with which option you should choose, talk to your real estate agent and ask their advice. They know the market and can recommend your next course of action. When in doubt, trust your agent!
