Selling a Las Vegas Home with Unpermitted Work

by Ryan Rose

That garage conversion looked great. The backyard patio cover is perfect. The extra bathroom was a solid upgrade. But none of it was permitted.

Now you're selling. Is this a problem?

Maybe. Let's talk about it.

What Counts as Unpermitted

Work that required a permit but didn't get one. In Las Vegas, permits are typically required for:

Structural changes. Removing walls, additions, garage conversions.

Electrical work. New circuits, panel upgrades, major wiring.

Plumbing. Moving fixtures, adding bathrooms, water heater replacement.

HVAC. New systems, ductwork modifications.

Patio covers and structures. Anything attached to the house.

Minor cosmetic work like paint, flooring, or cabinet replacement doesn't need permits.

Why It Matters

Appraisal issues. If the appraiser notices unpermitted square footage, they might not count it toward value. That bedroom addition might be valued as storage space instead.

Insurance problems. If something goes wrong with unpermitted work, insurance might not cover it.

Buyer concerns. Many buyers get nervous about unpermitted work. They worry about quality, liability, and future problems.

Financing complications. Some lenders won't finance homes with significant unpermitted work, especially FHA and VA loans.

Your Disclosure Obligation

If you know about unpermitted work, you need to disclose it. Nevada requires disclosure of known material facts. Unpermitted work qualifies.

"I didn't know" only works if it's true. If you did the work yourself without permits, you know.

Your Options

Get permits retroactively. You can apply for permits after the fact. The city inspects the work. If it meets code, you get permits. If not, you fix it until it does. This can be expensive and time-consuming, but it solves the problem permanently.

Disclose and sell as-is. Tell buyers about the unpermitted work. Price accordingly. Let them decide if they care. Many buyers don't, especially for minor work.

Remove the unpermitted work. If it's causing major problems, sometimes removal is easier than permitting. That garage conversion becomes a garage again.

What Buyers Will Do

Some buyers won't care. Investors especially. They're buying for rental income, not code perfection.

Other buyers will negotiate hard. They'll want price reductions to cover the "risk" of unpermitted work.

A few will walk away entirely. Their loss. Someone else will buy.

The Appraisal Factor

Here's where it gets tricky. If your home's value includes unpermitted square footage, the appraisal might come in lower than expected.

Appraisers are required to note permit status. They might value your 2,000 square foot home as 1,600 square feet if the 400 square foot addition wasn't permitted.

The Bottom Line

Unpermitted work complicates sales but doesn't make them impossible. Disclose what you know, price appropriately, and find the right buyer. Many homes with unpermitted work sell every day.

Worried about unpermitted work on your Las Vegas home? Let's discuss your options.

Frequently Asked Questions About Selling Las Vegas Homes with Unpermitted Work

Q1: Can I legally sell my Las Vegas home if it has unpermitted work?

Yes, you can legally sell a home with unpermitted work. However, you are required by Nevada law to disclose any known unpermitted work to potential buyers. Failure to disclose can lead to legal issues down the road. Many homes with unpermitted work sell successfully when properly disclosed and priced appropriately.

Q2: What types of home improvements require permits in Las Vegas?

In Las Vegas, permits are typically required for structural changes (removing walls, additions, garage conversions), electrical work (new circuits, panel upgrades), plumbing modifications (adding bathrooms, moving fixtures), HVAC installations or modifications, and patio covers or structures attached to the home. Minor cosmetic work like painting, flooring, or cabinet replacement generally doesn't require permits.

Q3: Will unpermitted work affect my home's appraised value?

Yes, it can significantly affect your appraisal. Appraisers are required to note permit status, and they may not count unpermitted square footage toward your home's total value. For example, an unpermitted 400 square foot addition might be valued as storage space rather than living space, potentially reducing your home's overall appraised value and affecting financing.

Q4: Can I get permits for work that's already been completed?

Yes, you can apply for retroactive permits in Las Vegas. The city will inspect the existing work to ensure it meets current building codes. If the work passes inspection, you'll receive permits. If it doesn't meet code, you'll need to make corrections until it does. While this process can be expensive and time-consuming, it permanently resolves the unpermitted work issue.

Q5: How will unpermitted work affect my ability to find a buyer?

The impact varies by buyer type. Some buyers, especially investors, may not be concerned about unpermitted work. Others will negotiate for price reductions to offset perceived risks. Some buyers may walk away entirely, particularly those using FHA or VA financing, as these lenders often have stricter requirements regarding unpermitted work. Proper disclosure and appropriate pricing are key to finding the right buyer.

Q6: What happens if I don't disclose unpermitted work?

Failing to disclose known unpermitted work violates Nevada's disclosure laws and can lead to serious legal consequences. Buyers who discover undisclosed unpermitted work after closing may sue for damages, rescission of the sale, or other remedies. The "I didn't know" defense only works if you genuinely had no knowledge of the unpermitted work. If you performed the work yourself or were informed about it, you have a legal obligation to disclose.

Q7: Should I fix the unpermitted work or sell as-is?

This depends on your timeline, budget, and the extent of the work. Getting retroactive permits provides the cleanest solution but takes time and money. Selling as-is with full disclosure is faster and lets buyers decide if they care. In some cases, removing the unpermitted work entirely may be the easiest option. Consider consulting with a real estate professional to determine which approach makes the most sense for your specific situation.

Q8: Will unpermitted work affect my homeowner's insurance or the buyer's ability to get insurance?

Yes, unpermitted work can create insurance complications. If something goes wrong with unpermitted work, your insurance may deny coverage for related claims. Additionally, some insurance companies may refuse to insure homes with significant unpermitted work, or they may charge higher premiums. This can affect both your ability to maintain coverage while selling and the buyer's ability to obtain insurance after purchase.