Unpermitted Work Affecting Home Appraisal

posted 6 months ago in Finances
Post # 2
Member
1066 posts
Bumble bee
  • Wedding: August 2019

I wouldn’t panic. For one, the appraiser should consider why the house was sold for so low and either factor that in or not use it as a comp. And if not, you can point this out to the bank try to get a new appraisal.

And, if you are truly stuck with an appraisal that is less than your contract price, it isn’t the end of the world. You can go back to the sellers and ask to adjust the contract price to the apparaisal price. Most likely they’ll agree, they’ll want to close the deal, and besides, even if they get another buyer with a higher offer, that buyer will run into the same issue with the appraisal.

Post # 3
Member
7921 posts
Bumble Beekeeper

kristin36890 :  if you’re in a market where things are selling under asking price then I think you’ll be fine if you have to go back to the sellers due to a low appraisal. The only times I’ve known of it being an issue are in bidding war situations. When we refinanced our house a few years ago my real estate agent sent me some comps she had recently sold and she did have one couple that needed to come up with the extra cash because the appraisal was low and there were 10 other buys in line behind her willing to do it instead. 

eta: did you check the building jacket for your property to make sure all the work was permitted? Most real estate agents and inspectors won’t check that for you unless you’ve specifically talked to them about it. It’s usually a quick trip to the local building department. 

Post # 4
Member
95 posts
Worker bee
  • Wedding: June 2018

 I agree with sarusarunna :  The appraiser should be aware of this and will take it into consideration when finding comps. I wouldn’t panic either.

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