I have been in the Manayunk real estate market for more than 15 years and have sold more than 600 homes here. I have never seen or heard of an appraiser take into consideration if the bathroom has a permit or not. The bathroom will be included on the appraisal. I believe that a very large percentage of homeowners who've 'added baths' in Philadelphia over the last 50 years have NOT gotten a permit (although it is the best and safest way to go).
An 'added kitchen' (in basement or 2nd floor) is another story and without a permit for that there most likely WOULD be appraisal issues.
If the Seller won't do it, or, if it doesn't pass the Inspection, then you can walk away.
Put down that this MUST be done within 10 days, and have your other Contingencies set at 20-30 days and notify your Lender; that way you won't have to pay for Appraisal or Inspections before you know the answer.
The Seller may not accept; in which case, you are off-the-hook.
If the Seller accepts, you are off-the-hook too.
If it was a good job, and it meets code, then they may pass it.
Good luck and may God bless
Without permits, the appraiser is not allowed to include the half bath in the appraisal. If you are getting a mortgage it may not appraise out. The homeowners' insurance is only required to pay out on claims on what is permitted. If the half bath has no permit, it probably doesn't have UL inspection. That means if there is a claim, the insurance company will try to claim it is the fault of the work done without permits. How do you know the work was done correctly? per code? I would never buy without all the permits in place.
Contact L and I and ask them what the procedure is. Your Realtor shouldalso be familiar with the process. I am dealing with this situation right for a mortgage client of mine. In this case a violation was issued on the city cert. The inspector came out and requested that some changes be made to the property.
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
NMLS ID 143960
Philip J. Cunningham Sr
V.I.P. Realty Corp
Your liability will be to have a home inspection and to do your own homework. Ask the seller for certifications from plumbers or electricians and a warranty for the home.
I'd love to discuss the situation further. Feel free to contact me @ 215-669-0589 or email me at firstname.lastname@example.org
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