My experience: disclose, many buyers have no problem with that( they buy more space after all).
I agree with Solomon Romano, Valley has a lot of houses with DIY or other way added rooms or converted garages.
ooops, i just noticed that u posted it in 2007, so did u sell it ok? Let us know.
Any ideas on marketing for a house in Encino at $2,250,000 with 5,641 square feet permitted and an additional 1000+ unpermitted but disclosed.
Without further info, here is my suggestion: The Seller's should consider permitting the space after the fact. I have seen this done. The people involved had to bring the unpermitted space up to code, but they were eventually issued an occupancy permit for the unpermitted space.
Some mitigating issues: If it was done by a previous owner, sometimes the space can be "grandfathered". Some code officers would be more understanding of a homeowner who just didn't know any better than a builder who just broke the rules. If it is non-conforming, sometimes an appeals board will approve an exception, esp. for senior citizens.
Worth a look.
Re/Max OTB Estates