Home Buying in San Francisco>Question Details

cindi247, Home Buyer in San Francisco, CA

I decided to refi my house in SF. But there is an unwarranted unit downstairs, will that be a problem when the appraiser came to inspect the house?

Asked by cindi247, San Francisco, CA Thu Jan 10, 2013

Help the community by answering this question:


An unwarranted unit will not prevent you from getting an appraisal, but it will likely be either not included or included at a much lower price per square foot.

Example: we had some clients who bought a place with a finished basement. The main house was valued at $650ish per square foot, but the basement area was only valued at $125 per square foot.

Keep in mind that refi appraisals are often lower than appraisals for sales. If you are concerned about it have your agent pull some comps for you as it's harder to unring the bell once value is low.

Hope that helps.

Best Regards,

Lance King/Owner-Managing Broker
DRE# 01384425
0 votes Thank Flag Link Thu Jan 10, 2013
The appriaser is not going to report the non-permited improvements to the City if that is what you are worried about.
The added value will not be equal, on a dollars per square foot measure, as the permitted section of the property. It will add some value though just as it did to your purchase price.
In fact the base value of the property doesn't increase when the property is refinanced no matter how much equity has grown.
0 votes Thank Flag Link Thu Jan 10, 2013
Thanks for the answer. Do I need to remove the stove before the appraiser comes? Also can I have someone sleep in the garage temporaily? do I need to remove the beds?
Flag Thu Jan 10, 2013
Jed Lane, Real Estate Pro in San Francisco, CA
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