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Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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It should not be advertised as 3 bedrooms if the basement is not up to local code, and the listing real estate company can get into trouble for that. If you are going to stay in it a while, offer what it's worth to you, rather than worry about how it's priced as a 3/2 or 2/2/basement. As long as you put enough down that the loan is under appraisal the lender should be OK either way. Resale is not a big concern if you pay less for it in the first place. It's just going to eliminate potential buyers with a kid, that need 3 bedrooms on one level.
What you might do is check your county assessor website, most are available online. It will show what the county considers it to have in the way of bedrooms/baths, and any permits taken out on it. A structural engineer will not inspect the wiring, roof, plumbing or mechanical systems. A really good inspector will recommend additional inspections such as the structural engineer if they see any red flags.
If you are getting a loan, it will be appraised for what it legally is. If it is not a bedroom, but looks like a bed room, expect it to still not appraise for the value of a bedroom. Since you have concern about resale value, you should consider it not a bedroom.
Someone living there for a while, might consider using it as a bedroom and will pay for it as such, they may have to come in with extra money, more than if it was permitted as a 3 bedroom.
You might end up paying for an appraisal,inspection, engineer, and then might not be able to finance it under your terms. What does your lender say about not doing a home inspection.
We haven't got that far yet. I was window shopping, so to speak, and came across this house. I'm certain any lender would require an inspection, at a minimum, but for our own peace of mind, we are going to hire an engineer should decide to go forward on it.
FTR, I have no reason to believe that we would not qualify for mortgage on this house.
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Originally Posted by Hemlock140
It should not be advertised as 3 bedrooms if the basement is not up to local code, and the listing real estate company can get into trouble for that. If you are going to stay in it a while, offer what it's worth to you, rather than worry about how it's priced as a 3/2 or 2/2/basement. As long as you put enough down that the loan is under appraisal the lender should be OK either way. Resale is not a big concern if you pay less for it in the first place. It's just going to eliminate potential buyers with a kid, that need 3 bedrooms on one level.
For me, it's not worth paying more than what we could sell it for. I really like the home; its size, style, and location are almost perfect, but I could walk away from it.
Quote:
What you might do is check your county assessor website, most are available online. It will show what the county considers it to have in the way of bedrooms/baths, and any permits taken out on it. A structural engineer will not inspect the wiring, roof, plumbing or mechanical systems. A really good inspector will recommend additional inspections such as the structural engineer if they see any red flags.
Nobody want to sleep in a basement. It's a 2 bedroom. But if you like it, that is all that matters. Of course Keep in mind if you go to resell, it's a 2 bedroom not 3 bedroom.
I am not sure why you wouldn't do an inspection anyway? Are you giving up an inspection clause?
In my area, basements are common and finished basements are common too. additionally a lot don't have COs.
Even if you have a CO in place and egress, basements are valued or considered the same as normal square footage. I generally wouldn't consider a basement bedroom to be in the bedroom count. Its a basement. But we don't have walk out basements.
IMHO you have a 2/2 not a 3/2 and should be priced as one of those, which is actually a pretty decent sized hit to marketability. I sold a 2/1 that was my first house and it was a bear to sell, even though it was quite large for a 2/1
Absolutely get an inspection done. The guy I had locally KNEW what to look for and I learned a ton from his report-for example the plugins in the garage are inverted-not a big deal....except when it suddenly is. The flash that diverts water from the roof is missing, etc etc etc.
And yeah this sounds like a way to get a appraiser who doesn't see the inside to give a artificially high valuation on the property. So having a appraisal done might be wise too.
Lets be honest-you're spending a ton of money, these people can save you far more then they cost you.
Nobody want to sleep in a basement. It's a 2 bedroom. But if you like it, that is all that matters. Of course Keep in mind if you go to resell, it's a 2 bedroom not 3 bedroom.
I am not sure why you wouldn't do an inspection anyway? Are you giving up an inspection clause?
In this state, home inspectors are not licensed. And we would absolutely have it inspected, but by a structural engineer.
All this is mute, though. We went and looked at it and it's a no-go. The basement area was only about 6 feet high and there was no way I would have anyone sleep down there. Nor would I use it as an office; it was just too claustrophobic.
The owner did do some work to it, but it would have needed so much more work. I could see us easily having to put a minimum of $40,000 into it and still wouldn't be worth the asking price. Neighborhood looked really dicey too.
To be fair, the listing did say, "Basement bedroom does not meet egress." When I spoke the realtor, she elaborated that it was because of the the egress window. It was a bit misleading, but technically, she did meet the minimum requirements for the listing.
In order to be considered a bedroom, it also needs to have a closet. Otherwise, it's just an office space. It sounds like this is NOT a 3-br. house, but a 2-br. with a (partially) finished basement. What's the rest of the basement like?
I bought one of those craftsman's houses, and didn't need a structural engineer. It was in great shape. I think you only need an engineer's inspection if there's reason to think there's been some settling on the property that might have caused some damage to the foundation. The regular inspector would be able to alert you to any red flags that might require a structural engineer's inspection.
It sounds like the seller is trying to pass this off as a 3-br. unjustifiably, to maximize his return. At least you know what he paid for the property. You can make your offer accordingly.
There was a closet and the bedroom would have been fine...for an elf. The ceilings were very low in the rest of the basement as well. As I said, it was claustrophobic. So bad that I would have had to move the laundry room. I don't even think the stairs leading to the basement laundry were wide enough for a washer and dryer.
It was so creepy, I had to get out of there.
I've been researching homes in the area and the house was way over priced even if it was in great shape.
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