Home Buying in 55410>Question Details

Don, Home Buyer in 55410

House is selling as Open permit.... what is mean?

Asked by Don, 55410 Fri Apr 22, 2011

The house is short sale... It was made in 1963, and now it is under the renovasion, and short sale...
Do you think it is OK to buy? The house is selling for $1,199,000, but it looks nice...
I guess someone offered but the seller is looking for large down payment...

Help the community by answering this question:

Answers

7
Don,
That means there has been work completed on the home and a permit has not been finalized.
Look into the permit and the work that needs to be complete in order to close the permit.
0 votes Thank Flag Link Tue Feb 24, 2015
Hello Don

Open permit means, the work is not finalized and there is not a fInal permit filed
With the Planning and Building dept. You undertake liability of finishing the Open permit items
After the purchase.

Since, it is being renovated there might one or more open permits. If the work is done to code it
Will be easy to complete and get the Final permit, if sadly the work is sub standard then after the close you
Will have to bring it to code.

Clearly you do need a Contractor to go out with you to the property and give you an idea and an estimate as
To what it will take in terms of time and costs.

Good luck.
Perry

http://www.ruthandperry.com
0 votes Thank Flag Link Sat Aug 13, 2011
The foreclosure, and short sale market can be interesting! I would absolutely hire a good inspection. If you go into it with eyes wide open you should be good! Good luck.
Web Reference: http://www.Kimmelin.com
0 votes Thank Flag Link Fri Apr 22, 2011
Hi Don,
As an investor this is the kind of deal I look for. Many buyers are afraid to tackle a job like this. I take my contractor and inspector through the house. My contractor gives me an estimate on repair / renovation according to my specifications. For me many of these houses have been a very good deal. On the homes we buy, fix, and sell there is typically a 20% or greater return.
0 votes Thank Flag Link Fri Apr 22, 2011
Don:

The others had very good advice. I would add that for a short sale to be successful is depends on the listing agent. Sort sales are much more difficult and if the listing agent is not properly trained the chances of success are pretty low.

It might be a good idea if you are not represented to choose a buyer’s agent that is highly trained in short sales so the buyer’s agent can make suggestions to the listing agent for a successful process and approval by the other parties.

The open permit is a different issue but if the listing agent can’t get the other parties to approve the short sale the point is mute.

The website listed has very complete information on short sales click on Behind On Your Mortgage Need a Financial Life Line? This will take you to a short sale website.

I specialize in short sales so if I can help please call me.

Bill Dobbins 612-719-3236
Web Reference: http://TheDobbinsGroup.com
0 votes Thank Flag Link Fri Apr 22, 2011
Don, a home that has an "Open Permit" is one where the owner (or owner's contractor) has "Opened" a building permit....maybe a demolition permit, an electrical permit, a plumbing permit...whatever the case may be, they started the renovation out correctly by "Opening a Permit".

BUT...since it's a short sale, that indicates that they ran into a hardship and can no longer afford to complete the renovation...therefore, they cannot "Close the permit" with the city. So, anyone purchasing the home will be required to complete the renovation and "Close the permit" themselves.

The answer to your question, "Do you think it is OK to buy?" depends on a lot...actually, A LOT more! Hopefully you have a trusted Real Estate professional, a good Home Inspector, a qualified Lender and Title Company who can work with you and help you better answer that question.

Take care and don't hesitate to contact us directly if you have any additional questions.

Annie and Bob Pacieznik "a name in real estate you might not be able to pronounce but can certainly trust" http://annieandbob.com 952-334-8225
Web Reference: http://annieandbob.com
0 votes Thank Flag Link Fri Apr 22, 2011
Permits that have not been closed, or have expired with having passed all the required inspections, are considered Open Permits. The building departments view this as work in progress that has not been completed and has not had a final inspection. Open permits that are not renewed, canceled or closed-out are subject to fines, and if still not resolved, liens on the owner's property.

It is the responsibility of the property owner to make sure all permits that are acquired by contractors are closed-out at the end of the job.. In addition to paying the fine, the property owner will be responsible for paying additional permit fees and possibly hiring and paying another contractor to renew the expired permit, if the original contractor is no longer in business.

Buyer beware! Before you purchase a property, make sure there are no open permits on the property. You as the new owner will be held responsible for any open permits that were issued to the previous owner's contractors.
Since this property is a short sale you will also need clarification as to who is responsible for any open permits.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Fri Apr 22, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer