Unpermitted homes have many issues:
1. Local City laws-Some cities will simply require the new owner to pay to have the work brought up to code.Others may demand the unpermitted work to be removed. Some will try and prevent the escorw from closing if unpermitted work is not removed or brought up to code.
2. Financing issues-With FHA financing you could run into a problem getting the loan funded, especially if the work was done in a manner that present s and health or safety issue.
On a convention loan, you may be able to get funding, but NO VALUE will be added to the unpermitted work.
3. Personal headaches-I advise my buyers to avoid buying a home with unpermitted work. There are too many unknowns. Worst of all, if you discover issues you will more than likely be struck since you bought the home knowing the work was unpermitted.
4. Safety- Unpermitted work is often done by unlicensed contractors or a handyman.
5. Risk of loosing money- A home is too big of an investment...why take a gamble?
Best of luck to you
Kawain Payne, Realtor