GLA or still just a garage?

[Mike Ault]

Ten posts and nobody has mentioned "permits" yet. That must be some kind of record on here.

 

[Terrel L. Shields]

It has a 2nd kitchen, half bath, heat and a/c (ducts, not mini-split), insulated but still has the garage door and floors are epoxy. What kind of adjustments would you make?

Non-GLA. Treat and value separately. We have a number of these in the market so segregating the area and valuing it separately is possible and the best way to set a value for the addition. Value seems to be dependent upon whether there is or is not a new garage added after the conversion.

 

[Terrel L. Shields]

That must be some kind of record on here.

For one, I work in an area where permits are either a given or not applicable.

 

[Surf Cat]

It's a Man Cave and definitely has value! When the husband can get away from the wife where there's a fridge full of beer and he can stay warm....that's at least $25k

 

[Tom4value]

Definitely not a slop sink. There is a sink, stove and refrigerator along with counters and cabinets. It definitely appears more like living space than a garage.

Ok.
So now check to see if they have the proper permits. Plumbing and gas/electric (cooking) permits are serious business that you can't ignore. If everything is legal, then yes, include in GLA and room count.

 

[Terrel L. Shields]

Plumbing and gas/electric (cooking) permits are serious business

Again, depends upon being in Boston MA or Boston, KY

 

[Tom4value]

Again, depends upon being in Boston MA or Boston, KY

Correct me if I am wrong but a death due to a fire does not care about state lines? Correct me if I am wrong but insurance companies don’t check which state the property is in before they determine that they will not pay a claim due to lack of permits?

Our job is to provide an opinion of market value. Yes, I get it. But what I learned on day one of appraising is marketability factors into market value. Lack of permits affects market value; maybe not as much in Boston, KY but definitely in Boston, MA…..and still in Boston, KY!

Also, we are expected to be the “eyes and ears” for our client, who depends on us for their decision to use the subject property as collateral. If a catastrophe happens and the insurance company doesn’t pay and the owner walks away from a burned out house, the client is coming after people. Guess who is on that list?

 

[Terrel L. Shields]

before they determine that they will not pay a claim due to lack of permits?

Permits are NOT REQUIRED IN MANY RURAL AREAS. PERIOD. THE INSURANCE DON'T KNOW NOR CARE. Did they check for permits when my barn blew in a wall last week? Nope.

 

[Mike Ault]

You need to keep in mind that a substantial portion of the population lives in unincorporated areas of the country where there is no entity to issue permits. They are a non-issue, because they don't exist. I can do anything I want to my home, no permit required.

 

[Tom4value]

Permits are NOT REQUIRED IN MANY RURAL AREAS. PERIOD. THE INSURANCE DON'T KNOW NOR CARE. Did they check for permits when my barn blew in a wall last week? Nope.
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Well, know your market.