Selling a Las Vegas Home with Unpermitted Work: What to Know

by Ryan Rose

You converted the garage to a bedroom. Added a patio cover. Enclosed a porch. Did it without permits. Now you're selling, and you're wondering: Is this a problem?

Usually, yes. Here's what to understand.

What Requires Permits

In Clark County, permits are typically required for:

Structural changes (walls added or removed)
Room additions or conversions
Electrical work beyond basic fixture replacement
Plumbing additions or modifications
HVAC installation or modification
Patio covers, pergolas, and shade structures
Pool and spa installation
Roofing replacement
Window and door changes (certain types)

Minor cosmetic work (painting, flooring, fixtures) generally doesn't require permits.

Why Unpermitted Work Matters

Safety concerns. Permitted work is inspected to ensure it meets code. Unpermitted work may be unsafe, especially electrical and structural modifications.

Insurance issues. Damage related to unpermitted work may not be covered by insurance.

Appraisal complications. Appraisers note discrepancies between public records and actual square footage or features. This affects value.

Lender concerns. Some lenders won't finance homes with significant unpermitted work.

Liability. If something goes wrong with unpermitted work, you could be liable.

Common Unpermitted Work

The most common issues in Las Vegas homes:

Garage conversions. Turning garages into bedrooms, offices, or living space without permits.

Patio covers and enclosures. Adding shade structures or enclosing patios.

Bathroom additions. Adding bathrooms without plumbing permits.

Casitas or ADUs. Converting detached structures to living space.

Pool equipment. Relocating or modifying pool equipment.

Your Options

Option 1: Get retroactive permits.

Apply for permits after the fact
Work must be inspected and may need to be brought to current code
Can be expensive if modifications are required
May require opening walls or other destructive inspection
Could result in fines
Legitimizes the work for future owners

Option 2: Remove the unpermitted work.

Restore to original permitted condition
Eliminates the issue entirely
May not make financial sense depending on the improvement

Option 3: Disclose and sell as-is.

Disclose the unpermitted work
Let buyers decide if they want to address it
Price may be reduced to account for the issue
Some buyers (especially investors) accept unpermitted work
May limit financing options

Disclosure Requirements

Nevada law requires disclosure of known material defects. Unpermitted work you're aware of should be disclosed. Hiding it exposes you to legal liability if discovered later.

Better to disclose upfront and price accordingly than to face lawsuits after closing.

How It Affects Value

Unpermitted work creates uncertainty, and uncertainty affects value:

Square footage discrepancies. Appraisers may not count unpermitted additions in their valuation.

Buyer discounts. Informed buyers will negotiate lower prices to account for risk or potential remediation costs.

Smaller buyer pool. Some buyers and their lenders simply won't accept unpermitted work.

The Appraisal Question

When the appraiser sees a 4-bedroom home but records show 3 bedrooms, or sees a patio cover not on the original plans, they'll note the discrepancy. This can:

Require explanation to the lender
Reduce the appraised value
Potentially require remediation before closing

Working with Buyers

Some buyers accept unpermitted work, especially if:

The work is quality and appears safe
The price reflects the situation
They're paying cash (no lender concerns)
They plan to address it themselves

Be prepared to negotiate or accept buyers who are comfortable with the situation.

The Bottom Line

Unpermitted work complicates sales but doesn't make them impossible. Decide whether to permit retroactively, remove the work, or disclose and sell as-is. Price appropriately and be transparent with buyers. The worst approach is hiding it and hoping no one notices.

Selling a Las Vegas home with unpermitted work? Let's discuss the best approach for your situation.

Frequently Asked Questions About Selling Las Vegas Homes with Unpermitted Work

Q1: Do I have to disclose unpermitted work when selling my Las Vegas home?

Yes. Nevada law requires sellers to disclose known material defects, which includes unpermitted additions or renovations. Failing to disclose unpermitted work can expose you to legal liability after closing. It's always better to be transparent upfront and price accordingly than risk lawsuits later.

Q2: What types of home improvements require permits in Clark County?

In Clark County, permits are typically required for structural changes, room additions or conversions, electrical and plumbing work beyond basic replacements, HVAC modifications, patio covers, pool installations, roofing replacement, and certain window or door changes. Minor cosmetic work like painting and flooring generally doesn't require permits.

Q3: Can I still sell my home if it has unpermitted work?

Yes, you can still sell your home with unpermitted work. You have three main options: obtain retroactive permits, remove the unpermitted work, or disclose it and sell as-is. Many buyers, especially cash buyers and investors, are willing to purchase homes with unpermitted work if it's properly disclosed and priced appropriately.

Q4: How does unpermitted work affect my home's value?

Unpermitted work typically reduces home value because it creates uncertainty. Appraisers may not count unpermitted additions in their square footage calculations, buyers will often negotiate lower prices to account for risk, and you'll have a smaller pool of potential buyers since some lenders won't finance homes with significant unpermitted work.

Q5: What happens during the appraisal if my home has unpermitted work?

When appraisers notice discrepancies between public records and the actual property (like extra bedrooms or structures not on original plans), they'll note it in their report. This can require explanation to the lender, reduce the appraised value, or potentially require remediation before closing can proceed.

Q6: What is the process for getting retroactive permits in Las Vegas?

To obtain retroactive permits, you'll need to apply for permits after the work is complete, have the work inspected, and potentially bring it up to current building codes. This process can be expensive if modifications are required, may involve opening walls for inspection, and could result in fines. However, it legitimizes the work for future owners.

Q7: What are the most common types of unpermitted work in Las Vegas homes?

The most common unpermitted work in Las Vegas includes garage conversions to living space, patio covers and enclosures, bathroom additions without plumbing permits, casitas or ADU conversions, and relocated or modified pool equipment. These improvements often significantly impact home functionality but were completed without proper permits.

Q8: Will my homeowner's insurance cover damage related to unpermitted work?

Typically, no. Damage related to unpermitted work may not be covered by homeowner's insurance policies. This is one of the key risks associated with unpermitted improvements and a major concern for potential buyers, as it creates financial liability if something goes wrong.

Q9: Can buyers get financing for a home with unpermitted work?

It depends on the lender and the extent of the unpermitted work. Some lenders won't finance homes with significant unpermitted improvements, while others may allow it with proper disclosure and adjusted valuations. Cash buyers have the most flexibility since they don't need lender approval.

Q10: Should I remove unpermitted work before selling?

Removing unpermitted work is one option, especially if it's minor or was poorly executed. This eliminates the issue entirely and restores the home to its original permitted condition. However, it may not make financial sense if the improvement added significant value or functionality. Consider the cost of removal versus the potential price reduction from selling as-is.