Unpermitted work · San Diego & South Bay
Sell a house with unpermitted work in San Diego — without legalizing it first.
Converted garages, back-house additions, extra bedrooms, and “granny flats” built without permits are everywhere south of the 8. They're a problem for a financed sale and a disclosure obligation for you. They're not a problem for us.
Why it matters
What unpermitted work does to a traditional sale
General information for California homeowners, not legal, tax, or financial advice. Laws change and every situation differs — confirm with a California attorney, escrow or title company, or tax professional.
Disclosure
California's Transfer Disclosure Statement asks directly whether there are additions or alterations made without permits or not in compliance with codes. If you know, you disclose.
Appraisal and financing
Appraisers typically give little or no value to unpermitted square footage, and some lenders won't lend on a property with an unpermitted second unit. That shrinks the buyer pool to cash.
Insurance and liability
Some insurers exclude or decline unpermitted structures; a buyer's inspector will flag electrical and egress issues.
Code enforcement
A complaint — often from a neighbor — can trigger a city case requiring you to permit or remove the work, with fees and deadlines.
Your options
Three ways to handle it
Legalize it first
Apply for retroactive permits. Often requires opening walls, engineering, and bringing the space to current code. Costly and slow, and not always possible — but it can add real value if the space qualifies as an ADU under today's more permissive state rules.
Remove it and list
Demolish the conversion or addition to restore the original permitted condition. You lose the space and pay for demolition, but the house becomes cleanly financeable.
Sell as-is to a buyer who expects it
Disclose what you know, and let the buyer take on the permit question after closing. We price it into the offer and handle the city ourselves.
ADU context
Why unpermitted units are more valuable than they used to be
California has spent years loosening rules for accessory dwelling units: garage conversions and detached units are now permitted by right in most residential zones, and cities including San Diego and Chula Vista have amnesty and streamlined paths for legalizing existing units that meet health and safety standards. That doesn't make every unpermitted conversion legalizable — setbacks, egress, and structural issues still matter — but it means a converted garage is often an asset to a buyer willing to do the work, not just a liability.
We evaluate whether the space is a candidate for legalization and price accordingly. Either way, you don't have to solve it.
How it works
How selling to us works
- 1
Tell us about the house
Enter the address and answer a few quick questions — or just talk to us. You don't need to know anything about the market.
- 2
We look and we talk
We review comparable sales, do one walkthrough, and may ask a few questions. No pressure, no obligation.
- 3
Get a written offer and pick your date
If the house fits what we buy, you get a clear cash offer with the math behind it. Accept it or not — and if you do, close on your timeline.
FAQ
Questions San Diego homeowners ask
Do I have to tell buyers the addition isn't permitted?
If you know it isn't, yes — the TDS asks specifically, and failing to disclose a known material fact can lead to liability after closing. Disclosing it to us costs you nothing; we already expect it.
Will you lower the offer because of unpermitted space?
We value the house on its permitted footprint and the realistic cost and likelihood of legalizing the extra space. Sometimes the space adds value; sometimes it's neutral. We show you our reasoning.
There's a code case open against the property. Can I still sell?
Yes, in most cases. The case follows the property, and we take responsibility for resolving it after closing. Send us the notice so we can price the cure.
The unpermitted unit has a tenant in it. Is that a problem?
Not for us. Tenant rights still apply, and we buy with tenants in place.
Free tools
Run your own numbers
Related
Other situations we help with
- Sell house as-is
What “as-is” means in California, what you still have to disclose, and what condition really does to the price.
- House that needs repairs
Fix-and-list versus sell-as-is: which repairs pay back, which don't, and how to compare the two honestly.
- Inherited house
Probate vs. trust, heirs, the Prop 19 tax reassessment, and how to sell an inherited home as-is.
- Cash home buyers
How direct buyers calculate offers, what to ask any cash buyer, and red flags to watch for.
See what we could pay for your San Diego house.
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