June 27, 2025
The moral of this success story isn't what you think. Curious? Read on….
While shopping for home recently, our clients came across a cozy, updated place that was an instant contender. It had the perfect commute location, a sunny, grassy backyard, and the WFH space they desperately needed. The only downside? The family room, office, and second bathroom had all been built without permit.
The rooms were well-finished and totally functional, but there were clues - low ceiling height, tight door clearance in the bathroom, missing square footage in the tax records - that the space had been built illegally.
If you've looked at single family homes in the Bay Area, you know this is a *very* common scenario; one we've helped our clients assess hundreds of times. It's a matter of risk and reward. Risks (potential violations from DBI) vs. rewards (usable space you can often buy at a discount).
In this case, our client weighed everything out and decided to pass.
The following week, we heard from the listing agent: The seller was, in six-year-old parlance, BUSTED. The Department of Building Inspection had discovered the unpermitted space and issued a notice of violation. The seller got hit with a list of required corrections and a fine, and their sales process was dead in the water.
Needless to say… our client breathed a huge sigh of relief. Bullet: dodged!
So, that's all great. But here's what we came here to say:
The moral of the story is NOT: "Don't buy homes with unpermitted work."
The moral of the story IS: "Be informed!"
After all, buying a home is never risk free. Being a tenant isn't risk free either! (Inflation and rising rents, anyone?) But being aware of and discussing potential risks with your agent BEFORE you sign on the dotted line means you'll be ready for whatever comes.
If our client had rolled the dice on the unpermitted work and they were the ones to get a letter from DBI, they'd be bummed, but certainly not blindsided. They would have been prepared.
We're here to help you uncover and consider as many of the "what ifs" as possible, so you're armed and ready for future bumps in the road.
Think about it this way: If you had a friend who had gone through the home buying process hundreds of times… you'd call and ask for their advice. Right? ;)
Remember, we're only an email away! Reach out anytime. [email protected]
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