how do you guys handle these?

i just did an interior interior inspection...and they illegaly added on 2 bedrooms to the house...

i have no clue wether im suppose desregard the addon,...estimate how much it would to put it back to normal, etc???

Based upon my experience as a mortgage broker and as a "general rule", a lender lends, 95% of the time, based upon what is stated in the County records and what is permitted.

Thus, if County records say a SFR consist of 3beds/2baths and 1500 rsf; but the SFR actually has 4bed/3baths, and this additional spaces makes the SFR am estimated 1800 rsf, the lender wants to value the SFR based upon 3bed/2bath and 1500 rsf - that which is stated in the County records.

Thus, I would value a SFR using comps based upon what is in the County records and in the notes/comments section of the BPO state what the actual bed/bath count is, along with the estimated rsf.

In our neck of the woods, county records are often wrong. They may have the incorrect number of rooms or square footage. Sometimes they dont' mention either.

You can use MLS records for the subject (particularly from before the "mods" were done) or you can also use properties that appear to be the same model in the subdivision (assuming it's a subdivision).

The basic premise is if it isn't legal, it doesn't exist. Is that correct?

papa lou is correct, however, county records are not always correct thus I always mention the situation in the comments. Ie; 3/2 1500 sf home with what appears to be an extra bedroom added without permit (did not show in county records), this report is based only on the 1500 sf that is verified.

If there is a post report discrepancy you have covered yourself

You might be able to get a contractor who knows the code well, bring it up to code then get an after-permit.
You shouldn't use unpermitted space on any report,IMO. I had a listing that showed a much lager sq.ft. than when measured, but on the certificate of occupancy, it said "basement not to be used as living space", but the basement was obviously included in the stated sq.ftg.

County or [in Illinois] township assessors are notoriously sporadic in documenting additions. Some will get out of the car and physically measure the exterior walls, some will eyeball it, some will trespass, some will doorknock and ask for entrance to inspect. Varies by assessor to assessor and sometimes weather conditions. So if a township is completely reassessed every 5 years, a residence can be wrong in SF or BR or baths, or even exterior additions or structures, for 4years of that 5, at least. Does that make the 4th bedroom illegal? Who knows...it may be just under-assessed.

it's really a judgement call. but, you have to know what you're looking at. If you're not qualified to make the determination, you shouldn't do it.

I'll bet the homeowners in that county have to check their records to make sure the assessor doesn't sneak and extra 500 or 5000 sq.ft. onto their tax bill.

I go with the county records. In the court of law take it up with the County.

I will notate in a BPO that improvements have been done. Could reflect a decrease on DOM for the improvements.

So how is it that you know it is an illegal addition. If it is above grade, heated and finished it is living area--regadless what the tax records say. Here in NJ our tax records are awful. Some towns include basement area, some have no sq footage and others show no room counts or year built. My house was just re-assessed for the first time in over 15 years. It went from 76,000 to 231,000 and they never even came inside. Then you have all the realtors that include basements on the mls sq. footage. If the mls lists the room sizes you can usually come pretty close by adding them all up and multiplying by 35% depending on style. Many ranches with walk up attics that have been finished are also not reported on tax records. At least in my area.

I tend to use the tax records. This is a BPO not an appraisal.

If there is MLS data and I am convinced it is accurate (some MLS data is terribly inflated by the agent to push a sale) I will go with the MLS data.

They may kick it back to you if they have an appraisal on file showing the extra rooms, but at least you can justify your figures.

you can't change or disregard what's currently there. you have to be honest with your reporting of the facts. whether or how much value you give to the additions is a matter of professional judgement.

Here is my newbie gem lesson for today. Read grasshoppers ....

This is a common situation in Southern California where so many don't speak english ..........

You will get an order for an exterior BPO and you go pull the MLS & tax data info for the subject. THe MLS says that the subject is a 5/3, 2000 sf home with a non-permitted garage conversion. The tax records show that the subject is a 3/2, 1550 sf. So which one is correct? The following is how I address this in the comment area of the BPO report.

Subject according to tax records is a 3/2 1550 sf, 2 car garage home. A non-permitted garage conversion added 2/1. This report is based on tax data only and disregards non-permitted conversion, however, conversion may be a determent in the re-sale process as most buyers are typically searching for a 3/2 with a 2 car garage. I would suggest that the non-permitted conversion be eliminated prior to re-sale.

The truth is many times non-permitted 'additions' are not only worth nothing but actually deter from the value.

OK newbie's, turn toward California and bow, thank you : )

I got one of these just yesterday. The county records showed something like 2 bed 1 bath, 1100 sf. Then someone from the BPO company sends me an email & all the body of the email says is "Rooms: 0; Bath Rooms: 2; Half Bath: 0; Bed Rooms: 3; Interior SQ FT: 1434" Sorry buddy, I am going on what the county records state since the addition was obviously done after the fact without permits & I have no idea who the guy was from the BPO company to let me know what the property intailed. It was just strange.