Underwriting

Using permit history to estimate future repair needs

Property permit history can reveal more than just past renovations; it can give you clues about potential deferred maintenance or structural issues. Knowing how to read these records can sharpen your repair estimates and strengthen your offer.

October 25, 2026 · 3 min read

Where to find permit history

Most local building departments or county websites provide online access to property permit records. You can usually search by address or parcel number. Some counties might require a physical visit to the planning or building department.

The level of detail varies by jurisdiction, but you are looking for dates, descriptions of work, and inspection statuses. This public information is often overlooked but can be a goldmine for your underwriting process.

What a missing permit might indicate

A significant renovation without a corresponding permit is a red flag. It could mean the work was not done to code, or it might not have been properly inspected. This unpermitted work could pose structural issues or lead to future enforcement problems for a new owner.

Always investigate unpermitted additions or major remodels. Factor in the hypothetical cost of bringing the work up to code, including potential demolition and re-permitting, when formulating your offer. Sometimes, the risk outweighs the reward.

Connecting old permits to current condition

If you see a permit for a new roof 20 years ago, that roof is likely nearing the end of its lifespan today. Similarly, old plumbing or electrical permits can suggest when those systems might need replacement. Use permit dates to estimate the age of major systems and components.

Compare the permit history with the visible condition of the property during your walkthrough. Discrepancies can reveal neglected maintenance or even shoddy past work that passed an inspection but is now failing.

Permits for additions or structural changes

Permits for additions, deck constructions, or structural modifications are particularly important. These types of projects, if done incorrectly, can lead to serious and costly problems. Check for final inspection approvals on these permits.

If a structural permit is open or shows no final inspection, it means the work was never fully signed off by the building department. This could indicate incomplete work, code violations, or simply a bureaucratic oversight that will need to be rectified.

When to factor in unpermitted work

If a property has unpermitted work, you must decide how to address it in your offer. One approach is to estimate the cost of removing the unpermitted structure and returning the property to its legally permitted state. Another is to budget for the hypothetical cost of getting the work permitted retroactively, if that is even possible in your area.

Always assume the worst-case scenario for unpermitted work. It is better to overestimate potential remediation costs than to be surprised after closing. Explain these risks clearly to your end buyers if you are wholesaling the deal.

Getting an expert opinion

For complex permit histories or significant unpermitted work, bring in a local inspector or contractor for an expert opinion. They can assess the quality of the work and provide more accurate repair estimates. This due diligence protects your investment.

An expert can also advise on the likelihood and cost of getting unpermitted work approved. This outside perspective is invaluable for making informed underwriting decisions, especially on properties with extensive or questionable past renovations.

Questions people ask

Does unpermitted work always mean a bad deal?

Not necessarily, but it always means increased risk and potential cost. The severity depends on the type of work and your local building department's regulations.

Can I get permit history online?

Many local municipalities offer online permit search portals. Check your city or county building department's website first for property-specific information.

How far back should I check permit records?

Aim to check records as far back as available, especially for major systems like electrical, plumbing, HVAC, and any structural changes. Sometimes, older records require an in-person visit.