2 part question - unpermitted structure VA and agency status

2 Replies

Hi all,

This is a 2-part question.

I was speaking with the seller’s agent and I told him that I don’t have a real estate agent. He said that he could represent me. I told him that I didn’t want representation from anyone and that I would represent myself. I told him that I think if I don’t have any representation, the owner shouldn’t pay as much in commission and could potentially lower the price.

The other question is that there is an non-permitted structure in the back. It's a 2/1. What are the permitting costs in los angeles? Could I lower the purchase price because it's not permitted? Here's the issue. I want to purchase using a VA Home Loan. Will the VA appraiser ignore the un-structured building? Will the VA says that I have to pay close to the appraisal amount? Thanks.

@Dan Bee  I can't answer number two, but in regards to your first question - the seller and listing agent have already agreed on the total commission the seller will be paying. The listing agent is likely under no obligation to reduce his commission just because you are unrepresented.  Often, they just get both sides of the commission if there is no buyer's agent.

@Dan Bee  

I am told that the potential problem with unpermitted structures like the one you're talking about is that they tap into the existing sewer system as opposed to having an expanded sewer system to accommodate the extra high use (so to speak).

If you're flying solo you're going to NEED to do research or you will be doing yourself a disservice. Any unpermitted structure will almost always not be factored into the appraisal. 


I strongly suggest visiting the building and safety office on Figueroa and ask some hard questions. It will give you peace of mind in the end unless you're a dare devil and want to take on this unpermitted structure and the potential income it could bring until….

201 North Figueroa Street
Los Angeles, CA
(213) 473-3231 This office is generally less crowded if you can make it to the west side:

1828 Sawtelle Boulevard
Los Angeles, CA
(213) 473-3231

Good luck!

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here