In order to protect the people living in them, communities have certain requirements for their buildings, whether they are business or residential. For instance, most basements are not considered fit for a bedroom unless there is a window big enough to crawl out of (to escape from a fire). These building codes can make the
home-selling process a little more complicated; if it has been awhile since your house was built, it may not be up to code.
What's the big deal?
In some communities, you cannot sell your house unless certain things are up to code. What exactly is required to achieve this differs from community to community (e.g., in California, you must strap down your water heater to protect it against earthquakes). Some states don't require houses to be inspected at all during the purchasing process, satisfied that they were up to code when they were built. So, most houses that were built a while ago can be grandfathered into more recent zoning codes. However, some things are non-negotiable; installing a smoke detector on every floor is an example of a near-universal requirement. You will need to find out the specific regulations in your area before you'll know if your house is up to code or not.
You might also have buyers that are not going to purchase a property that isn't up to code. Whether or not it's worth it to bring one's house completely within regulations will be different for every seller.
Minor repairs may be worth the money you'll get in sale price; on the other hand, installing a new roof is probably not going to translate into a good deal on your end.
How do I know where I stand?
If you are
working with a real estate agent, he or she will no doubt have extensive expertise on this subject. What is or is not up to code, what can be negotiated, and maybe even some insider's tips on repairs would be available to you through your agent.
If you are not going through a broker, you might have to find out what is required of you through your city or town hall. However, hiring a home inspector is probably the best route. The buyer will do this as well before he or she closes on the property, but it's worth it to stay ahead of the curve; if something is found wrong with the house too late in the game, it could hold up the process for a while or, at worst, lose you the sale. If you arrange your own inspection, be sure you are familiar with your state's disclosure laws. If there is a problem that you are aware of, you may be legally bound to tell any prospective buyers about it.
Did You Know?
You can knowingly sell your home even if it is not up to code, as long as you advertise it that way. Check out our guide Selling "As Is" for more information.
Long story short, what you will or will not have to do concerning your home being up to code is going to depend on a lot of different factors. Make sure you get the experts to help you out on this one!