Risk of unpermitted addition

[Ying Tang]

Looking for some input from investors who’ve dealt with this before.

I'm reviewing a property where the MLS/floorplan square footage and layout don't match the county assessor records, and parts of the home appear to be labeled as additions. The total area is off by about 150 sqft. It doesn't look like a garage conversion, but the SFH is currently having two kitchens, which is a good indication of some work done in the past.
I also reached out to the listing agent for clarification but haven’t received a response.

For those with experience:

- Do you generally assume unpermitted work when the sqft and shape don’t line up?  
- How do lenders and appraisers usually treat these discrepancies in your market?  
- Have you seen this impact insurance coverage, resale, or liability down the road?  
- When underwriting, do you base value on assessor living area only or total usable space?

Appreciate any real-world insights on how you evaluate and price this kind of risk.