Illegal Adu's

[Terrel L. Shields]

I do not give credit in my appraisals for illegal unpermitted space period.

Ah yes...the invisible building.

 

[J Grant]

The market decides what to give credit to (or not). If the market returns no value in "illegal" (or non permitted ) additions /buildings so be it, but we can't make a generic blanket policy about value different than market .

Lenders of course can decide not to lend on a property with an illegal or non permitted structure or addition. But that is their call to make. We provide information and a value opinion, it is their decision to approve or deny a property for certain loan programs.

 

[BarrySW1963]

Denis. You rock. That explanation is going in my Big Book of Appraisal Wisdom for future reference.

 

[Tom D]

i think the only time "illegal addition" would be used is when L&I catches you rehabing, or building without permits, and they put a big piece of paper on the windows to cease & desist working on the house under penalty of arrest.
in the old days a quick $20 and the L&I guy would come back after it was done. well, not new construction home or a total rehab. if an addition is built, and no one sees it, is it illegal? all good answers above.