Converting a storage room to a small office. (Sacramento: insurance, assessor)

[49erfan916]

Quick question: If I were to convert my storage room into an office, would I need a permit from the City of Sacramento to do it? I know the room would need alot of work. (Carpet, electricity, telephone jacks, etc...) but I do not want to submit a permit to Sacramento because my value of my home would sky rocket and I already pay high ***** property taxes.

Any feedback would be greatly appreciated.

[Elliott_CA]

Originally Posted by 49erfan916

Quick question: If I were to convert my storage room into an office, would I need a permit from the City of Sacramento to do it?

You'd be foolish not to get a permit especially since electrical is involved. If your new office catches on fire, many homeowner insurance companies will not pay claims on unpermitted work. That would cost you a lot more than what you have to pay in property taxes. Also, if you go to sell your property, unpermitted work can and does cause deals to fall through because many banks won't approve mortgages if the property has unpermitted work. It can be expensive to get a permit and use licensed contractors but in the end it's worth the investment -- and the peace of mind.

[49erfan916]

Originally Posted by Elliott_CA

You'd be foolish not to get a permit especially since electrical is involved. If your new office catches on fire, many homeowner insurance companies will not pay claims on unpermitted work. That would cost you a lot more than what you have to pay in property taxes. Also, if you go to sell your property, unpermitted work can and does cause deals to fall through because many banks won't approve mortgages if the property has unpermitted work. It can be expensive to get a permit and use licensed contractors but in the end it's worth the investment -- and the peace of mind.

Thank you.

[wburg]

Having an electrician install an electrical outlet and a phone line in a spare room won't trigger the reevaluation of your house for tax purposes. And you don't need a permit to install carpet!

The only way your taxes would go up (can't see them "skyrocketing") is if you rezoned your house to commercial and planned on turning it into a full-time/high-traffic commercial office use, but it's a pretty slim chance you would be able to get that rezoning approved in a residential neighborhood anyhow.

[Ruth4Truth]

Originally Posted by wburg

Having an electrician install an electrical outlet and a phone line in a spare room won't trigger the reevaluation of your house for tax purposes. And you don't need a permit to install carpet!

The only way your taxes would go up (can't see them "skyrocketing") is if you rezoned your house to commercial and planned on turning it into a full-time/high-traffic commercial office use, but it's a pretty slim chance you would be able to get that rezoning approved in a residential neighborhood anyhow.

This. OP, your home's value isn't going to skyrocket because of a closet-office. That's ridiculous. Sounds like a good project, though--enjoy!

[49erfan916]

Originally Posted by Ruth4Truth

This. OP, your home's value isn't going to skyrocket because of a closet-office. That's ridiculous. Sounds like a good project, though--enjoy!

Thank you! I have no idea how these things work. But thank you again!

[Elliott_CA]

Originally Posted by wburg

Having an electrician install an electrical outlet and a phone line in a spare room won't trigger the reevaluation of your house for tax purposes.

It's up to the assessor but generally improvements that upgrade a room's intended use is deemed equivalent to new construction and changes the assessed value. Carpeting alone won't trigger it but upgrading a storage room to an office with electrical might.

If the market value of home is $300,000 and the Prop 13 assessed value is $200,000, plus the value of building permit is $10,000, then the home will be reassessed at $210,000. The annual 2% Prop 13 cap does not apply to new construction.