Quote from @Sophia Boro:
There are obvious benefits to acquiring properties that have permitted work, but I want to see if anyone can explain why some folks allow unpermitted work. My curiosity includes how timeframes are affected, the listing price of the home, quality of work etc.
Anyone have any insight?
Sophia, There is uneven and varying building code by each state, along with differing compliance stances and enforcement for permitting.
I recently installed a high efficiency hot water heater and furnace in a single family home in Western PA, I called the building inspector to ask what permits I needed, and he could care less about permitting for it. If I did the same job in Western MA, and they caught me doing it without permits, there would be a stop work order on the job. In Florida, if you're an unlicensed contractor, they treat unpermitted work like a felony, its no joke, mugshot and all.
I think some investors will try to skirt the building inspectors and not permit/strategically permit because of the perceived hassle, cost, and added timeline of dealing with the local building department.
When I build a new home in SW FL, the permits costs THOUSANDS of dollars. Then I pay taxes on the home, and assessments, etc. It takes the Cities down there 2-4 months just to review my permit package and approve it. Its a new home, I have to do it, and wouldn't do it any other way. Just know, its not all roses dealing with local building departments, their changing whims, and the cost/headaches of dealing with different building inspector personalities.
If you permit for a large job on a renovation, just know, your tax valuation will be assessed based on any new work performed. So if you put in say a chef's dream kitchen that's valued at $100K, guess what, you just added this newly assessed value to your tax bill every year.
