Home Buying in Brookvale>Question Details

Sp, Home Buyer in Daly City, CA

Should we buy a house without getting a permit for an extension tha was previously done?

Asked by Sp, Daly City, CA Tue Aug 5, 2008

We're thinking about purchasing a Single Family Home in Fremont that has had an extension done to it without a permit. The extension has been done probably about 20 years ago by someone other than the current owners. We're thinking about getting the permit taken care of but are scared that the city might tell us that the extension needs to come down and be rebuilt. The extension was done to the family room and is probably about 200sqft. Do you think its too risky to purchase the house?

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Bootleg? Right? Anybody. No value on the appraisal and chance the city drives by and condems ...does happen. http://www.borrowerhotline.com Fighting Foreclosures Legally
Web Reference: http://borrowerhotline.com
0 votes Thank Flag Link Tue Aug 5, 2008
Sp, there are two different valuations that come into play when we talk about these situations. The first is the value placed on such a property by current market demand. The other valuation comes from a licensed appraiser. Given the uncertainty of unpermitted work, an appraiser will not be able to place any value on such work. For example, say a Buyer places a $500K offer on a home that has $50K in unpermitted remodeling. In this simple case the appraiser would assign a $450K value, which would require the Buyer to come to the escrow table with an additional $50K as the lender would only provide financing on the appraised value of $450K.

Another issue is that of safety. Do you really know that the work was done properly?

In short, buying a home with unpermitted remodeling is gambling with your financial and personal safety.

Best Regards,

Steven A. Ornellas, GRI, ABR, e-PRO, CMPS, RE Masters, MBA
REALTOR® / Mortgage Banker-Broker / Certified Mortgage Planning Specialist

Steven Anthony Real Estate & Financial Services
Expect Excellence. Get What You Expect.â„¢
Cell: 510.461.6011
http://www.Steven-Anthony.com SteveO@Steven-Anthony.com
0 votes Thank Flag Link Tue Aug 5, 2008
Sp:

VERY risky indeed. Make the purchase contingent upon getting city approval. It will take a while and stretch out the length of the escrow, but will be your only safeguard. If you wish, I can send you a previous article on this subject.

carl@carlmedford.com
Web Reference: http://www.carlmedford.com
0 votes Thank Flag Link Tue Aug 5, 2008
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