Selling a home with code violations can feel like a tricky situation. Whether the violations are minor or more severe, they can complicate the process and turn away potential buyers. However, there are still viable options for selling your home, even if it doesn’t meet all local code requirements. Here’s a breakdown of your options and strategies for selling a home with code violations.
1. Fix the Code Violations
If you have the time and resources to make repairs, this is one of the most straightforward ways to resolve the issue. Addressing code violations before listing your property can increase its appeal to buyers and might even help you sell for a higher price.
✅ Solution:
- Hire a licensed contractor to fix the violations and bring your property up to code
- Obtain the necessary permits and inspections to ensure compliance
- Once repairs are complete, update your listing and advertise the home as code-compliant
However, this option can be expensive and time-consuming, especially if the violations are significant or involve major systems like electrical or plumbing.
2. Sell As-Is with Disclosure
If you don’t have the time, money, or desire to fix the violations, you can sell your home “as-is.” In this case, you must disclose any known issues to potential buyers, including code violations, so they’re aware of what they’re getting into.
✅ Solution:
- Be transparent about the code violations in your listing and during the negotiation process
- Be prepared for buyers to ask for a lower price to account for the cost of repairs
- Consider offering a credit to the buyer for the cost of fixing the violations
Selling as-is means you’ll likely need to lower the price of the home to reflect the issues and attract interested buyers. Some buyers, especially those looking for fixer-uppers, may be willing to take on the responsibility.
3. Negotiate with Buyers to Address Violations After Closing
Some buyers might be open to purchasing your home with the understanding that they’ll handle the code violations after the sale. This arrangement might be appealing to investors or experienced renovators who are familiar with code requirements.
✅ Solution:
- Work out a deal where the buyer agrees to take on the cost and responsibility of fixing the violations after closing
- You could offer a price reduction or closing cost assistance to make the deal more attractive to buyers
While this approach might save you from having to make repairs yourself, it requires finding a buyer who is willing to handle the post-sale work, which could limit your pool of potential buyers.
4. Sell to a Cash Buyer or Real Estate Investor
If your home has code violations that are too costly to fix or if you need to sell quickly, selling to a cash buyer or real estate investor could be your best option. Cash buyers typically don’t require extensive inspections and are often willing to buy homes with violations, as they plan to renovate the property themselves.
✅ Benefits of Selling to a Cash Buyer:
- No Repairs Needed: Cash buyers purchase homes as-is, regardless of condition
- Fast Closing: Cash transactions can close in a matter of days or weeks
- No Contingencies: Investors usually don’t require traditional mortgage financing, which can speed up the sale process
Selling to a company like Home Cash Guys can offer a fast, hassle-free way to get rid of a property with code violations without worrying about making repairs or dealing with extensive paperwork.
5. Work with a Real Estate Agent Experienced in Problem Properties
Some real estate agents specialize in selling homes with code violations or other issues. These agents understand the challenges involved and can help you navigate the selling process. They can also assist in finding buyers who are willing to purchase a property that needs work, such as investors or renovators.
✅ Solution:
- Look for agents who have experience with distressed or problem properties
- They can help price the home competitively and market it effectively, even with code violations
- They may also assist in finding contractors to fix violations before listing
However, even with an experienced agent, selling a home with code violations can still take longer and may require price adjustments to compensate for the issues.
6. Consider Selling to the City or Local Government
In some cases, local governments or municipalities may be interested in purchasing properties with code violations, particularly if the home is in an area undergoing revitalization or if the property poses a public safety risk.
✅ Solution:
- Check with your local government or city programs to see if they are interested in purchasing homes with violations
- Some cities offer programs where they buy distressed properties to rehab and resell them
This option is less common but can be worth exploring, especially if you’re dealing with severe violations or financial hardship.
7. Evaluate the Potential for a Short Sale
If your home is underwater (meaning you owe more on the mortgage than the home is worth), a short sale could be an option. In a short sale, the lender agrees to accept less than the full amount owed on the loan. While code violations can complicate the process, short sales are sometimes possible with distressed properties.
✅ Solution:
- Contact your lender to see if a short sale is an option
- Work with a real estate agent experienced in short sales
- You may still need to disclose code violations during the process
Keep in mind that short sales can take time, and there’s no guarantee the lender will approve the sale.
Final Thoughts
Selling a home with code violations may take a bit more effort, but it’s certainly possible. Whether you choose to fix the issues, sell as-is, or work with an investor, you have multiple options. Consider your budget, timeline, and goals when deciding which approach is best for you.
If you need to sell quickly or without making repairs, Home Cash Guys can help. We specialize in buying homes as-is, no matter the condition. Contact us today for a fair cash offer!
