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We have been going to open houses for the last one month or so. We saw a couple of houses which had more bathrooms and bedrooms than advertised or with garage converted to something else. Needless to say, they were done without permits. (Nassau County land records show differently). And they have been on the market for a while. I guess everyone is staying away from those. We would stay away from those but we like the house with 1/4 of the garage space converted to an office.
If we are to submit an offer to the house, we would have the seller to get it up to code (whether getting rid of the office or getting it legalized.) Or would it be easier to buy low (hopefully) and fix it ourselves? From what I read in other threads, it seems like a lot of work (and money). Or can we keep hiding it? I have no idea what “getting up to code” involves. The house is located in an incorporated village.
It all depends on the lender you're using. If you're paying cash then it makes no difference "code" wise.
Some mortgage lenders are worse than others. I just bought a house with a completely finished basement with a kitchen and bathroom that had no permits, and my lender didn't care one bit.
My old house that I bought had the garage converted to a gym, and that lender didn't care either. I turned it back to a garage and no one needed to be alerted.
Hard to say it is really a crap shoot. Some lenders care, others don't. Also sometimes (read not always) villages can be worse than the towns when it comes to stuff like this. If you can get the homeowner to legalize or return to original form that would be the best solution of all.
My house is being listed t minus 3.5 weeks. We have a full basement bath. We are being upfront we are not legalizing it. It will be take it as is if the lender has a issue we will remove it. House is being priced w/o the extra bathroom. I purchased it like this 3 years ago my lender didn't care.
We have been going to open houses for the last one month or so. We saw a couple of houses which had more bathrooms and bedrooms than advertised or with garage converted to something else. Needless to say, they were done without permits. (Nassau County land records show differently). And they have been on the market for a while. I guess everyone is staying away from those. We would stay away from those but we like the house with 1/4 of the garage space converted to an office.
If we are to submit an offer to the house, we would have the seller to get it up to code (whether getting rid of the office or getting it legalized.) Or would it be easier to buy low (hopefully) and fix it ourselves? From what I read in other threads, it seems like a lot of work (and money). Or can we keep hiding it? I have no idea what “getting up to code” involves. The house is located in an incorporated village.
Thanks.
Speak to your attorney. The advice you will get here varies widely on the topic. The truth of the matter is that each situation varies greatly depending on town, bank, type of modification, purchase type/down payment, appraisal, seller, and a bunch of other crap. Your attorney should give you the best advice on a case by case / situation by situation basis.
A contractor recommended that I legally finish a basement because it adds value to the house when it comes time to sell. I'm. It sure I'm sold on that theory, while it may add some value (I've heard that a finished basement adds only about $10,000 of value) the permit fees and years of higher taxes mean you pay more in the long run than the extra $10k you'll get when you sell. Furthermore, some people may prefer buying a house with a finished basement that doesn't have a CO because they know that it keeps their taxes down, and they may feel that they are getting a deal since it theoretically isn't factored into the asking price.
I could be completely wrong, but there are a ton of opinions out there on the subject, and this is just mine.
Your contractor wants you to do it because he needs the money.
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