Unpermitted Additions

[Randolph Kinney]

Can't really see how the electrical goes to the electrical panel box from the photo. As-is, it may require an inspection to see if it presents a hazard.

 

[EddieB]

Most work appears professional/semi professional but I don't know if they were licensed. Roof lines and connection to main structure is iffy, guttering looks "rigged", electrical is questionable in my opinion. Interior is nice.

I believe some inspections should be called for. Although attached to main dwelling, I am not including in GLA and using a separate line item. Just having difficulty with marketability and value added.

 

[EddieB]

I agree with trying to compare with another enclosed porch type scenario. Maybe I am being biased with the appeal aspect. Thoughts?

 

[Randolph Kinney]

Well, if it presents a health, safety or soundness issue, it won't meet MPR. If there are questions that need to be answered and the only way is from a qualified expert ... call for one.

If you can find sales of similar home with enclosed patios, that is the starting point for value.

You can also do a modified cost approach to see how much it would cost to add a room.

 

[Randolph Kinney]

Maybe I am being biased with the appeal aspect. Thoughts?

Have you interviewed the buyer as to what other homes did they consider, and what aspect did they like most that swayed them to buy this one? Was the enclosed patio a plus, neutral or minus?

Have you interviewed the listing agent to find out how many people were shown the home and why they did not make an offer?

 

[EddieB]

Thanks Randolph. I've contacted the direct lender and informed them of the need to call for inspections. They are conferring and will let me know.

 

[EddieB]

Home was marketed for 37 days. On surface appears addition may have added some value to the buyer. Haven't spoken to either Realtor as of yet. Inspected late yesterday and was caught off guard with the degree and "appeal" of addition.

 

[Mike Kennedy]

Interesting concept............."HABU including Legally Permissible as of the Effective Date of Appraisal" apparently no longer matters in some markets where Building Ordinances or Combo Building/Zoning Ordinances exist.

 

[Randolph Kinney]

Check the selling price of your subject with homes with and without an enclosed patio. If the subject price is closer to homes without enclosed patios, it may be the buyer was enticed by the apparent discount to market price of homes with an enclosed patio.