Selling a Home with an Un-Permitted Finished Bonus Room

[twingles]

Personally I would not consider buying a home with any un-permitted finished space, after dealing with this huge headache at my last house. An astute buyer, even if they can get a mortgage, won't want the burden to fall on them.

The other problem is now it's obvious this was a DIY project ... for the most part I'd avoid those like the plague as well.

[Velvet Jones]

Can you appeal the issue to a board? My friend had a similar issue, he appealed and got the changes grandfathered in. As the other poster said, as long as the work was up to code at the time of the permit it might be allowed. I guess it all depends on the state or local laws and how flexible they are.

[oregonwoodsmoke]

Get it taken care of.

Other wise what happens is that when you go to sell, the buyer will demand a big discount because the space isn't legal. Then once you are in escrow, his mortgage company will insist that it be final-ed.

So you will get less money and still pay to fix it.

Get it fixed now and enjoy the upgrade yourself, then don't have to discount the price when you eventually sell.

I'll file an appeal, but if that didn't work, I'd fix it and get the final inspection passed.

[TulipGrl]

Just went through this. The buyer of the house will most likely not be able to get ho insurance or a mortgage if they are aware of the unpermited space. The implicit assumption when listing property is that all room are permitted and inspected. That implies if this room is not, you should disclose it. But ouch, once disclosed your price will either be lower or the buyer will demand a credit and/or that you fix it prior to sale. Many appraisers and most title examiners will find unpermitted space so I'd take care of it now before you list it.