No Permit Partially Finished Basement Appraisal

[Tim The Enchanter]

In general, don't volunteer info they don't ask for.

 

[Tom D]

i like this thread. who needs the big bad permit inspector, because you seem to be punishing yourself, for not getting permits, better than they could.

 

[tommydearest]

i like this thread. who needs the big bad permit inspector, because you seem to be punishing yourself, for not getting permits, better than they could.

Gonna wind up costing me $10k in interest payments! Lol.

 

[Sadie]

Gonna wind up costing me $10k in interest payments! Lol.

The only problem comes when/if something bad happens in the space and it turns out work was not permitted (will your insurance cover it?) or when the property is sold and listing agent, selling agent or a buyer wants to make sure you got permits. Appraiser is probably not going to check if the work is professional looking. Me, personally, I always check when what I see doesn't match county records.

 

[Mike Kennedy]

Gonna wind up costing me $10k in interest payments! Lol.

Location? ( local municipality / county, town, city, village) ??

State >> https://www.michigan.gov/lara/0,4601,7-154-89334_10575_17394_81069-428633--,00.html

"building code enforcement that may be conducted by either the state, county or local unit of government"

LARA - Building Permit Information - State of Michigan​

www.michigan.gov/lara/0,4601,7-154-89334_10575...
The Michigan Building Code controls all matters concerning the construction, alteration, addition, repair, removal, demolition, use, location, occupancy, and maintenance of all buildings and structures and their service equipment. Presently, provisions for one- and two-family dwellings are included in the Michigan Residential Code.

 

[Michigan CG]

I am in Michigan and we run into finished basements all the time and I am not the permit police unless you convert a garage into living area then I ask the borrower to get me a copy of the building permit; I don't have time for that.

Some areas are more strict than others. Around here we have townships that will find out you built a pole barn and they will just tax it while others will make someone jump through hoops and may require painful requirements. For a basement you should be fine. My basement is finished with no permits and it is the least of my worries.

 

[Tim The Enchanter]

My basement is finished with no permits and it is the least of my worries.

Call the permit police!

 

[tommydearest]

The only problem comes when/if something bad happens in the space and it turns out work was not permitted (will your insurance cover it?) or when the property is sold and listing agent, selling agent or a buyer wants to make sure you got permits. Appraiser is probably not going to check if the work is professional looking. Me, personally, I always check when what I see doesn't match county records.

I looked into the insurance part when I did it. I'm not too worried about that. I also assume that I will have to do something when we decide to sell. That probably won't be for a ways off.

As far as professional looking, I did it pretty much up to code other than the egress window. But, like I said, the outside of a couple of the walls aren't even covered. Not sure how professional looking that is.

This is one reason I thought it might be wise to let them know it was unpermitted. If I admitted it at the beginning, why check?

 

[tommydearest]

others will make someone jump through hoops and may require painful requirements. For a basement you should be fine. My basement is finished with no permits and it is the least of my worries.

That's the part I'm worried about. I wouldn't be as worried had I finished up drywalling the outside of the main room. There are a couple of small rooms that are still just studs.

 

[Russ Kitzberger]

Appraisers are permitted under USPAP to disclose the physical improvements of your property, as in that you have a finished basement.
However, There is nothing stopping them from engaging in a contractual relationship not to disclose that information outside of the project report.
If you can find a lender that will allow you to stipulate that ALL of the appraisers data pertaining to your property is confidential, then you can operate within some degree of understanding that information will not be shared with outside parties.

I don't know if you will find a lender or appraiser to accept the confidentiality terms, but this does occur in consulting and litigation. Some clients don't want their property information shared, working with a specialist appraiser can ensure that happens.