The call

How to respond when a seller mentions an unpermitted addition on the call

When a seller mentions an unpermitted addition during your call, it's a prompt to gather more information, not to react negatively. Acknowledge what he or she said, then ask questions to understand the scope and history of the addition.

November 1, 2026 · 3 min read

Acknowledge the information calmly

When a seller brings up an unpermitted addition, acknowledge it without judgment or alarm. A simple "Okay, I understand there's an addition that wasn't permitted" signals that you heard him or her and are processing the information. Your tone should remain calm and professional.

Avoid immediate reactions that might make the seller defensive. He or she might not even understand the full implications of an unpermitted addition. Your goal is to keep him or her talking and gather more details.

Ask open-ended questions about the addition

Follow up with open-ended questions to understand the specifics. Ask: "Can you tell me more about that addition? When was it put on? What was added?" This helps you grasp the size, age, and nature of the unpermitted work.

Also, inquire about his or her knowledge of why it wasn't permitted. He or she might say "the previous owner did it" or "we just added a patio cover." The more details you get now, the better you can assess the potential impact.

Explain its potential impact on value and process

Gently explain that unpermitted work can affect the property's value and the selling process. You might say, "Unpermitted additions can sometimes be a bit tricky with city regulations and appraisals, so we'll need to look into that during our due diligence." This sets realistic expectations.

Emphasize that it's a common issue and that you're prepared to handle it. Avoid making him or her feel like the property is problematic or that you are reducing your offer solely based on this. Keep the focus on your ability to solve the problem.

Set expectations for due diligence

Be clear that any offer will be contingent on further investigation into the unpermitted addition. State, "We'll need to have our team look at it more closely to understand what's involved with getting it up to code or if it affects the structure." This is part of your standard process.

Let him or her know that this due diligence is for his or her protection as well as yours, ensuring a smooth transaction. This manages his or her expectations about what happens after the initial call.

Focus back on the seller's motivation

After addressing the unpermitted addition, pivot back to the seller's core motivation for selling. Reiterate, "Regardless of the addition, my main goal is to understand your situation and how quickly you need to sell." This reminds him or her of the primary conversation.

The unpermitted addition is a detail to manage, but it shouldn't overshadow the reason he or she reached out in the first place. Keep connecting back to his or her needs and timeline.

Document the details in your CRM

Immediately after the call, log all the details about the unpermitted addition in your CRM. Note what was added, when, and any reasons the seller provided for it being unpermitted. This information is crucial for your property analysis and any follow-up discussions.

Accurate documentation ensures that anyone else on your team, or you yourself, can pick up the conversation later with full context. It also helps you track common issues related to specific property types or areas.

Questions people ask

Should I tell the seller it's a problem right away?

No, avoid telling the seller it's a 'problem' immediately. Frame it as something that needs further investigation. Focus on gathering information and understanding his or her situation first, then explain the implications calmly.

What if the seller doesn't know it's unpermitted?

If the seller doesn't know, explain it to him or her in simple terms, focusing on local code compliance. You might say, "Sometimes additions don't get the necessary city approvals, which we'll need to look into." Do not make him or her feel at fault.

Will this kill the deal?

An unpermitted addition doesn't automatically kill a deal, but it will affect your offer and due diligence. Many investors buy properties with unpermitted work and factor in the cost to legalize or remove it. It's a hurdle, not necessarily a deal-breaker.

Does this mean more repairs are likely unpermitted?

It's a possibility. If one addition is unpermitted, it raises a flag that other work might also lack proper permits. This emphasizes the need for thorough due diligence and potentially a more detailed inspection.