Risks for selling a home with unlicensed work

General
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We are looking to sell our home here in California. A few years ago we had water damage that required the downstairs to be gutted.

We went through insurance and were able to find a contractor through a friend.

This was our first time dealing with something like this so we didn’t know much.

This contractor started the work and we got everything repaired/updated. Piping, electrical, etc.

When the house was about 90% complete he started dragging his feet and kept us out of the loop and asked for more money. I was able to look up his license and realized his license had expired a few months prior to when he started work. When confronted about this he seemed guilty, but then a week later while while we were trying to figure out what to do in this situation he disappeared. We got the house completed and it’s been a few years.

When we found out about his license and did more research we realized the normal process of a contract/ receipts/ etc when it comes to this kind of work.

Basically we don’t have much when it comes to receipts, insurance just did before and after pics and signed off on it.

I know when we sell we have to disclose everything. But I’m not sure what exactly to disclose, all the above? What we know is wrong or a potential issue in the house?

How much will this affect the sale price of the house? Everything in the house is working and looks good. Just need some advice on how to proceed.

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Sure! Just tell them the house had a flood, but a contractor fixed it up. No permits were pulled, though. It might freak out a few buyers, but honestly, in San Diego, a lot of homes have unpermitted work.

Let the buyer bring in their own inspectors if they want, and just be upfront about everything.

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I’m not an expert or anything, but I think you can get it inspected and certified to make sure it meets the code later. That way, you don’t have to mention that it was done without permits.

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You don’t need to go into too much detail in your disclosure. Just be honest about the unpermitted work you’ve done. You might find a section in the seller disclosure that specifically asks about it, or you can mention it in a general section for anything that could affect the sale.

Unpermitted work is pretty common in California, so it probably won’t hit your sale price too hard. If you get a home inspection done before selling, you can share that report with buyers. They usually only check what’s visible, so they won’t see under the concrete unless they scope the pipes. If the visible work looks good, buyers will likely assume the hidden stuff is fine too. Plus, since you’re a homeowner, you won’t be scrutinized as much as a flipper.

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