When getting ready to sell a home, there are a lot of steps before you can hand your keys over to its new owner. One big hurdle that can impede your real estate plans is a code violation. Code violations come in all shapes and sizes and basically are the source of health and safety hazards within a home. These could range from structural issues, like roofing and flashing, to having enough smoke detectors throughout the house. When you become aware of any of these code violations, don’t panic. There are a few options in place that you can consider depending on your situation. If you’re a home or property seller dealing with code violations, here is what you can do.
Get an Idea of How Much it Would Be to Make Repairs
After you get an inspection that reveals any code violations, the best thing to do is to get a good understanding of what these types of violations entail. Some violations, like the smoke alarm one mentioned above, are easy and inexpensive to fix whereas plumbing and more complicated electrical issues are going to be pricier. Consult with your inspection company to get a ballpark of what they think it would cost to make repairs. Once you have that information, you can move forward with a decision of what to do.
See if it is Reasonable to Make Repairs
Going forward with the house repairs is going to be the best option for you if a) you can afford to make the repairs and b) you have the time to do so. Consult a net proceeds calculator to factor in how much money you will be making on the sale when all is said and done. Choosing to get your house up to code before the sale can help you to sell your home for a better value, assuming the upgrades come with a good return on investment.
Make this decision alongside a real estate agent who likely has experience in code violations and give you good advice based on the market and what your house needs. Top agent insights show that we’re approaching a hot season for real estate, and taking the time to make these repairs could work well in your favor.
Lower the Asking Price and Disclose Issues
Most states require that you disclose any known issues to the home buyer, and many lending companies will deny mortgages to people if the house in question is in violation with certain codes. Overall, it’s in your best interest to give the buyer notice of any defects or hazards and to adjust the price of the home based on how much money it will be to make updates. This option works for people who don’t have the time or resources to get their property up to date. A real estate agent should also be able to help you make an informed decision.
Sell to a Cash House Buyer
Another good option for those who are in a hurry is to sell to a real estate investment company or to a cash home buyer. This could either look like a house flipper or an instant home buyer (iBuyer). Depending on the state of your home and what code violations you have to deal with, you can still make a profit from the sale. Many investment companies will buy your home as is and give you an offer based on how much work is going to need to be done. It’s a great option if you need to sell your home quickly.
Having an inspector inform you of code violations on your home isn’t the end of the world. There are several options in place that will allow you to sell your home without issues. If you’re in the state of California and need to sell your house fast, Quick Home Offers can help. Get an offer, today!