We're looking at this home we really love, but we found out that part of the garage has been converted into a living room without any permits. The original garage door is still intact, but the interior is now drywalled and insulated. The seller is asking us to waive the inspection, which makes us think the unpermitted work might lead to issues. Here are my main questions:
1. We really appreciate the extra living space, but losing the garage is a drawback. What do you think the costs would be to revert it back to a garage that meets code? (Like removing the drywall, fixing electrical issues, ensuring the garage door works, etc.)
2. Is it wise to leave the conversion as is for now, or should we address it before finalizing the purchase?
3. We've heard that getting retroactive permits can be tough, especially if the work wasn't up to code. If the city finds out, what kind of liabilities might we face as the new homeowners—fines, mandatory removal, restrictions on future permits? Thanks so much for any advice you can give us!
3 Answers
Honestly, the requirements for it to still be considered a garage are loose—it just needs to fit a car. But since it’s drywalled and has insulation, I would check if that affects how it's classified in your area. As for an inspection, absolutely don’t skip it!
Good point! Just make sure to clarify what your local regulations say about converted spaces like that.
I’d say never waive an inspection, especially with something unpermitted involved. You’d want to know about anything else the seller might have done that could be an issue down the line.
Exactly! If they’re open about one unpermitted area, what else is lurking underneath the surface?
Exactly! I’d definitely want that inspection done to catch any hidden surprises.
Unpermitted work is pretty common, and usually, it’s not a huge issue. The real warning sign for me is them asking you to waive the inspection. Home inspections are just visual checks; generally, the issues that come up are easy to fix. You definitely want to know what you're getting into before making a purchase, right?
Totally agree! An inspection isn't about getting them in trouble; it's just a way to ensure you're making a smart decision. Waiving it feels super odd to me—it’s standard procedure to have one.
Yeah, I’ve seen people waive inspections, especially in hot markets. It’s risky though! I’ve heard a lot of stories where buyers regretted doing that.

It’s true that many garages have drywall and electrical work done while still functioning as garages. If things are legit, you can always remove the wall stuff later.