Unpermitted Detached Carport

[daniel32]

FHA - The home has a detached unpermitted carport. The question is... is it safe to assume that the appraised value will be the value of the home without the value of the unpermitted carport?

 

[TerryRohrer]

It is never safe to assume in this business. However, if you would not attribute any value to the carport if it were permitted (based on analysis of market data), then it would be reasonable to conclude that the value with the carport is similar to that without the carport (differing by a likely minimal cost to remove the carport). And in some jurisdictions, there is no impact on value whether or not an improvement is permitted.

 

[sputnam]

Your job is market value. What is the market reaction to the feature? We aren't the permit police. If the improvement is there then you include it... unless your Client has instructed you to omit any unpermitted improvements.

 

[Terrel L. Shields]

FHA - The home has a detached unpermitted carport. The question is... is it safe to assume that the appraised value will be the value of the home without the value of the unpermitted carport?

No. It is not invisible. Ask the client if they want to include it or not. If not, then the appraisal is a partial interest. FHA nor FNMA would accept that. So the right answer is above. You have to determine the market reaction. And that means finding sales with unpermitted garages...a real challenge.

 

[Mike Ault]

Judging by his signature, I'm pretty sure that he "is" the client…

 

[Tom D]

something unpermitted doesn't mean not usable. if license & inspections hasn't said anything about it by now, it will probable stand there forever. if it has been there a while, it will probable be there a longer while. big city with lots of non permitted work done. and we are going back a 100 years.