Will un-permitted work affect Appraisal?

1 Reply

Hey BP,

Going to refinance in a couple months and wanted to know if work done with no permit is taken into account on appraisals? As in, HYPOTHETICALLY, an AC system was installed that was no done with permits.  Would the appraisal not take this into account as it is not in the City's property database or would they?

Thanks!

Tim

Originally posted by @Tim Kaminski :

Hey BP,

Going to refinance in a couple months and wanted to know if work done with no permit is taken into account on appraisals? As in, HYPOTHETICALLY, an AC system was installed that was no done with permits.  Would the appraisal not take this into account as it is not in the City's property database or would they?

Thanks!

Tim

 It depends. If you added an unpermitted bedroom, it matters. If you upgraded HVAC probably not as far as appraisals are concerned. 

However for insurance claims, your unpermitted upgraded HVAC might matter if ever there was a fire or if it made the roof leak. It's usually cheap to pay for the permit and have it inspected. A lot cheaper than a claim refusal anyway.