Unpermitted enclosed garage question

[Alan A.]

Hello BP,

Thank you all in advance for taking the time to respond to my question.

I have a SFR under contract now (financing) and we are just about to go through bank appraisal. It is advertised as a 4/2.5, but the 4th bedroom was an enclosed garage, and the floors have not been raised. I've contacted the listing agent and requested them to change the MLS info to a 3/2.5 before the appraiser comes in.

Apparently permits have not been pulled for the conversion, but 80% of homes in the area have the same thing (built 1960). My goal is to not have the sale fail to close because of the 4th bedroom. Calling it an "enclosed garage" would technically allow us to get away with the floor not being raised, and other violations that might come up if we were to claim it as a proper bedroom.

I understand that we might also be in a position to negotiate a lower price because a 3 bedroom will obviously appraise for less than a 4.

Any advice from people who have gone through a similar situation would be greatly appreciated!