Property Q&A in Chicago>Question Details

 Tupper, Real Estate Pro in Chicago, IL

Do real estate appraisers in Chicago tend to research permits for buildings that were remodeled?

Asked by Tupper, Chicago, IL Tue May 15, 2012

I rehabbed a 2 flat with cash, most of the work required no permits, but some did. I got permits for some of the work that required permits, but not all of it. I'm trying to refinance it, and am curious how much appraisers look into permit issues.

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As a Broker and a Certified Residential Appraiser, I can tell you that researching permits or determining whether the work or property is in compliance with local housing codes is NOT part of a typical appraisal assignment; just the condition & improvements of the property. An appraiser will, however, research the municipal zoning and whether the subject property's present use is in compliance with the permitted use according to the zoning. Eg: if you rehabbed a 2flat with a garden unit that is zoned RS-3 in chicago or a Single Family zoned RS-2 with a kitchen in the basement, that could cause an issue. And since you're just doing a refi, you won't have any buyers asking to see permits so if you did quality work and the city is not asking to inspect it, you are good.
0 votes Thank Flag Link Tue May 15, 2012
Usually not - this is not in the scope of their work
0 votes Thank Flag Link Tue May 15, 2012
They typically do not. However, you should be careful of doing this in the future.
0 votes Thank Flag Link Tue May 15, 2012
Not the appraiser but I've seen some inspectors do this as part of their service.
Web Reference: http://LucidRealty.com
0 votes Thank Flag Link Tue May 15, 2012
No, they do not. It is normally outside of scope of their assignment(s).
0 votes Thank Flag Link Tue May 15, 2012
Very rarely, it is beyond the scope of work. The bank may require them though as part of the underwriting of the file.
0 votes Thank Flag Link Tue May 15, 2012
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