Home renovations can be exciting. New floors, an upgraded kitchen, maybe even a backyard deck—so what’s not to love? But under all that fresh paint and shiny tile, one crucial detail often gets overlooked: permits.

For sellers, permits show that any major work on the home was done legally and up to code. For buyers, they’re reassurance that the upgrades you’re falling in love with won’t turn into costly problems later.

Permits aren’t just paperwork. They’re protection. They prove that renovations were inspected, safe, and done right. When it's time to buy or sell, having those permits in place can make the process smoother, faster, and a lot less stressful.

What Is a Building Permit and Why Does It Matter?

A building permit is official approval from your local government to move forward with certain types of construction, electrical, plumbing, or structural work. It ensures your project follows safety codes and zoning laws.

This matters because not everything dangerous is visible. Wiring, plumbing, or framing mistakes can be hidden behind walls. Permits require inspections that help catch problems before they cause damage or injury.

And here’s something many people miss: even if you hired a licensed contractor, it’s still the homeowner’s responsibility to make sure permits were pulled. If they weren’t, you could end up paying the price.

Safety First: Permits Keep Everyone Protected

Permits exist for a reason, and that reason is safety. Licensed inspectors review key renovation milestones to ensure everything aligns with modern building codes. For higher-risk updates like rewiring a home, altering a load-bearing wall, or installing a gas line, those inspections could prevent future disasters.

Consider this: home electrical fires alone account for an estimated 51,000 fires annually and $1.3 billion in property damage, according to the Electrical Safety Foundation International (ESFI). This highlights why permitted work is so crucial: professionals inspect it to catch problems before they become disasters, giving you peace of mind that no shortcuts were taken.

How Permits Can Add (or Protect) Home Value

For buyers, permits offer peace of mind. They show that renovations were done legally, inspected for safety, and met current codes. Without them, buyers risk costly surprises or delays in financing.

For sellers, having permits in place can increase a home's value and make it easier to sell. Appraisers can factor permitted upgrades into the valuation, and buyers are more likely to move forward without hesitation. Homes with complete permit records tend to sell faster and face fewer issues during inspections.

The Legal and Financial Risks of Skipping Permits

Let’s say you remodeled your kitchen a few years ago, didn’t get a permit, and now you’re ready to sell.  And if the city finds out that you don’t have the necessary permit, you could face fines, be forced to remove the work, or redo it entirely with new permits and inspections. That’s time, stress, and money you didn’t plan for.

Don’t Skip the Permit History

Buyers: don’t assume everything in a home was done the right way. Ask for permit records on any major renovations. A finished basement or sunroom might look great, but if it was done without permits, you could be stuck fixing it later.

Permit history is especially important during inspections and appraisals. If an appraiser notices unpermitted work, it could affect the home's value. And if something goes wrong after you move in, insurance might not cover it.

To check permit records, visit the local city or county’s building department website. Many areas allow you to search by address. If the records don’t match what you’re seeing in the home, that’s a red flag worth investigating.

Permits and Home Insurance

Did you know unpermitted work can void parts of your home insurance policy?

Let’s say you have a house fire, and investigators trace it to unpermitted electrical work in your new addition. There’s a chance the insurance company could deny the claim.

Insurers want to see that renovations are done safely and inspected properly. If they weren’t, you may be on your own when something goes wrong.

Future Remodel Could Hit Roadblocks

Even if the unpermitted work seems fine now, it may come back to bite the next owner when they want to renovate further. For instance, a new kitchen added without permits might block access to plumbing lines or fail to meet setback requirements.

These design flaws only become apparent when new plans are submitted, and local building departments often won’t approve new work until prior issues are resolved. That could mean tearing down and rebuilding past projects just to move forward.

What Sellers and Buyers Should Know About Getting Permits

Most permits are issued by your city or county’s building department. If your project involves structural changes, electrical work, plumbing, siding, or decks, a permit is likely required.

Minor updates like painting or replacing flooring usually don’t need one. Moreover, it’s your responsibility as a homeowner to make sure permits are in place even if you hire a contractor.

If you’re unsure your project needs a permit, check with your city or county’s building department. It varies by location, but here’s a general guide:

Renovations That Usually Require a Permit:

• Electrical work (like new outlets, service upgrades, or panel changes)
• Plumbing changes (moving pipes, installing new fixtures, or water heaters)
• Building additions (new rooms, decks, garages, sheds, or bump-outs)
• Fencing (if taller than local zoning limits)
• Siding and window replacements that change the structure or dimensions
• HVAC installations or modifications
• Projects over a certain cost, often $5,000 or more depending on local laws

Simple cosmetic updates like painting, flooring, or replacing cabinets usually don’t need a permit. But when in doubt, ask. It’s always better to be safe than stuck.

Bottom Line: Permits are Worth the Effort

Yes, getting a permit can be a hassle. There are fees, inspections, and timelines to juggle. But it’s nothing compared to the time, money, and stress unpermitted work can create down the road.

For sellers, permits mean fewer headaches during inspection and appraisal. For buyers, they offer confidence that the home is safe and legal.

Whether you're improving a home or getting ready to buy one, take the time to check on permits. It’s not just a box to check but a key part of protecting your investment.