Buying a Home With Unpermitted Work in Washington: A Reality Check for Buyers

Important Note Before We Start

This article is for general educational purposes only.
If you are already under contract, your own real estate agent, lender, and inspector must guide you, as Washington law does not allow outside agents to advise on another agent’s active transaction.

What follows is a reality-based overview of how unpermitted work typically affects Washington home purchases.

1. What Does “Unpermitted Work” Actually Mean?

Unpermitted work refers to renovations, additions, or changes made without required city or county permits.

Common examples in Washington include:

• Finished basements

• Garage conversions

• Added bathrooms

• Electrical or plumbing updates

• Structural changes

Not all unpermitted work is unsafe — but it does carry risk.

2. Why Unpermitted Work Is So Common in WA Homes

In older Washington homes, unpermitted work is more common than people expect.

Reasons include:

• Work done decades ago under different standards

• Homeowners unaware permits were required

• DIY renovations

• Cost or time avoidance

Pierce County, Tacoma, Puyallup, and surrounding areas all see this regularly.

3. How Buyers Usually Discover Unpermitted Work

Unpermitted work often comes to light through:

• Home inspections

• Appraisals

• Disclosure review

• County record checks

Sometimes buyers don’t learn about it until late in escrow — which can change the entire tone of the deal.

This is one reason transactions fail unexpectedly:
Why WA Homes Fall Out of Contract (Real Reasons Deals Collapse)
 

4. Disclosure Rules: What Sellers Must Say in Washington

Washington sellers must disclose known material facts, including:

• Known unpermitted work

• Additions not reflected in county records

Estate sellers or sellers who never lived in the home may legitimately answer “don’t know” — but known facts cannot be withheld.

This disclosure process is explained here:
WA Form 17 Seller Disclosure: A Simple, Complete Guide for Washington Sellers
 

5. Appraisal Issues With Unpermitted Work

Appraisers rely on permitted square footage and legal improvements.

Unpermitted areas may:

• Be excluded from square footage

• Not add value

• Trigger lender concerns

This can result in:

• Lower appraised value

• Financing delays

• Renegotiation

Understanding appraisal realities early matters:
Appraisal Contingency in Washington: What It Is and Your Options If the Appraisal Comes in Low
 

6. Financing Risks Buyers Often Don’t Expect

Some loan programs are more sensitive to unpermitted work.

Potential issues include:

• Safety concerns flagged by the appraiser

• Lender repair requirements

• Refusal to lend until issues are resolved

Cash buyers may have more flexibility — but risk still exists.

7. Inspection Findings vs Permit Status

Inspectors focus on function and safety, not permit legality.

A space can:

• Function well

• Pass inspection

• Still be unpermitted

This disconnect is where buyers often get confused.

8. Can Buyers Ask Sellers to Permit the Work?

Sometimes — but it’s rarely simple.

Permitting after the fact may require:

• Opening walls

• Updated code compliance

• Engineering reports

• Time and money

Sellers may refuse, especially if the work is older.

9. Buying “As-Is” Doesn’t Remove the Risk

“As-is” means the seller isn’t agreeing to repairs.

It does not mean:

• Buyers waive inspections

• Financing risk disappears

• Permit issues vanish

Buyers still need to evaluate long-term exposure.

10. How Buyers Decide If the Home Is Still Worth It

Buyers often weigh:

• Price vs risk

• Location value

• Renovation plans

• Future resale impact

Sometimes the home still makes sense — sometimes it doesn’t.

There’s no universal answer, only informed decisions.

11. Unpermitted Work When Selling and Buying at the Same Time

For move-up buyers:

• Sale proceeds

• Financing approvals

• Timelines

…can all be affected by unpermitted work on either side of the transaction.

Coordination matters:
The Step-by-Step Move-Up Buyer Plan: How to Sell Your Current Home & Buy Your Next One Smoothly in Washington (2025 Guide)
 

12. The Big Picture: Unpermitted Doesn’t Always Mean “Don’t Buy”

Unpermitted work isn’t an automatic deal-breaker — but it is a decision point.

Understanding:

• Disclosure rules

• Appraisal impacts

• Financing limitations

• Resale considerations

…helps buyers move forward with eyes wide open.

And once again, if you are already under contract, your own agent, lender, and inspector must guide you on how unpermitted work applies to your transaction.

 If you’re considering buying in Washington and want to understand potential risks before writing an offer, learning about issues like unpermitted work early can prevent surprises later.

 Written by: Lani Fisher — Washington Realtor Helping Everyday Buyers & Sellers With Confidence