As a REALTOR®, I come across a lot of unpermitted work. There seems to be a misunderstanding about what work needs to be permitted in Palm Beach County. The most common misunderstanding is that only work on the outside of a home needs to be permitted. This is far from the truth and most likely came about because it is difficult for the building department to catch unpermitted work while it is happening behind closed doors.

When can unpermitted work come back to haunt you? When someone gets injured on your property or when you have a buyer for your property who does their research. If Code Enforcement gets involved, it could become very costly and time consuming for the homeowner. Please be aware that even if the homeowner does the work on the home a permit is required in many cases. Also, your town may have additional requirements for permitting. So call before you do any work.

Word of advice for home buyers looking to purchase a home that has been recently updated, especially ones that involve investors looking to flip: Ask of the permits. If they don’t have them, insist that they get them. The violations stay with the house. So once you buy the house, you own the violations.

From the Palm Beach County Building Department:

Section 105 of the Palm Beach County Amendments to the Florida Building Code requires permits for most construction-related work. Various improvements to real property may not require a Building Permit or Zoning review. Some may require only a Zoning review and are exempt from inspection and Building Code review. These improvements are termed Type 1- Site Plan Review Permits. The work exempted must still be constructed in accordance with minimum code standards. Other improvements for certain structures on actively functioning farms, are subject to agricultural exemption from Building Code enforcement by Florida Statute.

It’s easier to list ITEMS NOT REQUIRING A PERMIT in Palm Beach County (individual towns may have more restrictive permitting).

• A/C – Replacement of an existing window unit w/an existing dedicated electrical outlet.
• AC / Heating – Repair of existing system and/or replacement of any part that does not alter the system listing or make it unsafe.
• Ceiling Fan – Replacement of existing fan using existing fan box and wiring.
• Ceramic Tile – Remove and replace (Not installed on Fire Rated assemblies).
• Dishwasher – exact replacement; same wattage.
• Door – Replacement of any exterior door (excluding overhead doors) within the existing jam once in a 12-month period. (1 & 2 Family Dwellings only)
• Door – Remove and replace any interior residential door within the individual unit in the same location.
• Driveway – Sealcoat asphalt (1 & 2 Family Dwellings only)
• Drywall – Minor repairs if value of work is under $1,000 (1&2 Family Dwellings, Not involving Fire-Rated
  Assemblies)
• Faucet – Replace existing (not involving removal of drywall)
• Fence – Minor repair or exact replacement of a existing permitted fence up to $1000.00 fair market value,
  excluding pool barriers.
• Gutters and Leaders on 1 & 2 Family Dwellings.
• Kitchen cabinet – Exact replacement only with no change in configuration of electrical or plumbing (1&2
  Family Dwellings).
• Light Fixtures – Replace “like for like” in existing lighting outlet 1&2 Family Dwellings Only)
• Outlet or switch – Replace existing outlet or switch with appropriate type within existing junction box.
• Painting
• Pavers, sand set that are not a pool/spa deck or within five feet of a pool, (1 & 2 Family Dwellings Only) excluding
  driveways or turnouts.
• Playground equipment, Manufactured – Site-built play enclosures less than 6′ X 6′ X 6′ (1&2 Family Dwellings Only) (Uses must still meet accessory setback requirements)
• Portable / Manufactured Pool or Spa – Less than 24 inches deep
• Roof – Minor repair of existing roof covering less than $1000.00 fair market value
• Satellite Dish Antennas – Residential 1 meter or less in diameter. Commercial 2 meters or less in diameter.
• Screen room –Rescreening to $1000.00 value
• Siding – Minor repair to existing under $1000.00 value
• Sink – Exact replacement in same location only
• Soffit or Fascia – Minor repair or replacement up to $1000.00 in value, which does not involve structural members
• Stucco – Minor repair of existing stucco finish if value of work is under $1000.00
• Water Closet – Replacement in same location
• Water Heater – Repair or replace heating elements.
• Window – Repair within existing frame if value of work is under $1000.00
• Wood Deck –Minor replacement of existing decking under $1000.00 (1 & 2 Family Dwelling Only

Read more:

http://www.pbcgov.com/uldc/Article10.htm

PBC Building Department Brochure:Owner/Builder requirements in Palm Beach County

PBC Building Department Brochure: Items Not Requiring A Permit

PBC Building Department: Items Not Requiring A Permit – 2 sided paper

The following charts and reports can give an idea of the health of the single family home market in Jupiter.

For Sale vs. Sold vs. Pended in Jupiter

• The For Sale vs. Sold Report helps determine the trend of market supply and demand,
  and whether the current market is a seller or buyer market. It helps determine the minimum length of the listing period.
• Used with the Average Price Per Square Foot Report and can help set competitive list price.
• A download trend of listing inventory and an upward trend of the number of properties sold indicates the seller is in a better negotiating position.
• An upward trend of listing inventory and a downward trend of the number of properties sold indicates the buyer is in a better negotiating position.

The properties sold figures are derived from recorded transactions.
Current monthly sold figures might be adjusted upward on the next month’s report. This is to account for any closed transactions that are reported late.

Average Price per Square Foot in the town of Jupiter

• Average Price per Square Foot is the average of sold price divided by square footage the of sold listed home. Only the under air space is included in the average
• Average Price per Square Foot can help determine if there is any change in property value for a specific area in a specific price range.
• Refer to For Sale vs. Sold Report for the number of properties sold per month. If there are less than five properties sold per month for a specific price range, the average price per square foot might be skewed and is not as useful. In this case, an average of the fifteen month’s or more figures should be used in setting the price.

The garage area is not included in the square footage price calculation.
Individual listings in the MLS system without square foot information are excluded in the average square foot price calculation.

Jupiter – Days on Market

• Generally the number of Days on Market  refers to the total number of days the home is listed as “active” in the Multiple Listing Service (MLS).
• Sold/List Diff. % represents the percentage difference between sold price and list price of sold properties.
• Sold/List Diff. % represents the percentage difference between sold price and original list of sold properties.
• This chart shows the percentage of sold price / list price at which an equal number of properties are sold above, equal or below the list price.
• It indicates how long it has taken to sell those properties.
• Percentage of sold price / list price helps identify where the market activity is the strongest.
• Days on market figure helps establish the minimum listing period.
• If the percentage of sold price / list price is closer to 100 then there are more potential buyers available for the property.
• If a property’s listing period is less than the average days on the market, the listing will have a greater chance of expiring before it is sold.

Jupiter – Average Price For Sale & Sold Report

• Average Price For Sale is the average of list price of the properties for sale in a particular month.
• Average Price Sold is the average of sold price of the properties sold in a particular month. Displaying both
• Average Price For Sale and Average Price Sold line charts in a graph portrays the relationship between on and off market pricing.
• It helps determine whether the market is a buyer or seller market. If the average listing price and average sold price are the closest, the area has the healthiest market.
• If the average sold price is below the average listing price, and falling, the market is moving toward a buyers’ market. If the average sold price trend is up or above the average listing price, the market is moving toward a sellers’ market.

Jupiter – Months of Inventory Report

There are 2 kinds of Months of Inventory as follows:

• MOI based on Closed Sales = the number of properties for sale divided by the number of properties sold.
• MOI based on Pended Sales = the number of properties for sale divided by the number of properties pended.

As a rule of thumb, an inventory level of less than three months indicates a strong seller market while an inventory level greater than six months indicates a buyer’s market.

… it needs a new roof? … or the kitchen needs updating? … or it won’t pass inspection?

In Jupiter, there are a lot of beautiful desirable neighborhoods with older homes that are sorely in need of updating.  If you have found a home the right neighborhood for you and your family but it needs to be renovated, there is no reason to shy away from it. If you cannot come up with the cash for needed renovations in addition to a down payment, closing costs, and moving expenses there are a couple of loan options that will help you get the home you want in the area you desire and turn it into your dream home.

Federal Housing Administration’s 203k Rehabilitation Mortgage Insurance Program

With this the FHA 203k program you can combine purchasing and renovation expenses to extend your payments for the renovation over the life of the loan rather than paying a lump sum.

Unlike standard mortgage loans, this loan – officially known as the Federal Housing Administration’s 203k Rehabilitation Mortgage Insurance Program – wraps renovation and purchase or renovation and refinancing costs into one mortgage.

Borrowers with lower FICO scores and higher debt-to-income ratios can qualify for a 203k loan.  However because of the greater risk, FHA comes with an upfront fee of 1.75 percent of the loan amount, wrapped into the total mortgage. That’s $1,750 for every $100,000 borrowed. These loans are more lenient than conventional loans when it comes to qualifying income ad credit scores but the property must be a primary residence, and luxury improvements such as pools cannot be financed.

See more about 203k loans here

Another option is the Fannie Mae Homestyle^® Renovation Mortgage

For borrowers with higher credit scores there is a less costly program called the Fannie Mae Homestyle Renovation Mortgage. It too allows you to wrap the cost of renovation into the loan used to purchase a home. One of the main cost savings is the upfront mortgage insurance premium. The HomeStyle Renovation Mortgage does not require one.

You can put as little as five percent down with this loan. However, any downpayment below 20 percent will require private mortgage insurance (PMI) which may be less than the FHA mortgage insurance premium (MIP). PMI varies based on downpayment and credit score. FHA MIP though, does not get cheaper with higher credit scores and must be paid for the duration of the loan whereas HomeStyle PMI is dropped once you’ve reached 22 percent equity.

Another advantage of a HomeStyle Mortgage over the FHA 203k is there are no restrictions on property occupancy status. You can finance a primary residence, rental property, or vacation home.

See more about the Homestyle Renovation Mortgage.

Advantages of these programs

• BUY a home that doesn’t meet the health and safety standards for an FHA loan for example: needs a new roof or updated electric to meet code.
• REHAB a property and bring it up to current Florida building code such as new impact windows
• REFINANCE an existing loan and rehabilitate a property
• UPDATE a home for putting on the market

What if you are the seller?

If you are an owner of a home that isn’t selling because it needs updating one of these programs can also help. Many buyers are looking for move-in-ready homes and will pay a premium for one. Before you charge ahead and start renovating see this article for the updates that will get you the best return on investment.

Which option is best for your needs?

Your lender can help you choose which program will best suit your needs.

FHA 203k vs Fannie Mae Homestyle

Check out Lending Tree’s Complete Guide

See what Capital Partners offers home buyers and owner.

Are they worth the cost?

• Florida’s stronger building codes may seem costly at first but in the long run, they save money according to this study
• Structures built to the newer stronger codes suffer 64 percent less hurricane damage
• Because stronger impact codes add costs to new construction, communities that want to protect affordability sometimes push back  on implementing the new codes
• Statewide benefit-to-cost ratio of $6 in reduced damage for every $1 in increased cost

Read more

See the report

Check out how a home built to the stronger building code faired during Hurricane Michael