Legal Basement in-law in Providence

6 Replies

@Fay Brown

If it is legal and permitted it should already be factored into the tax bill, unless it was just recently completed. Then the taxes will catch up in the next tax year.

@Fay Brown I would imagine it would, yes. As a general rule, if you do work to improve the building it increases the assessed value.

But the amount could be negligible in the end and there could be a delay of a year or more until it affects the assessment/taxes.

For example, if the assessed value increased by $10,000, taking into account the 40% discount on assessed value for owner occupants and applying the tax rate of 24.56, would only result in $147 more tax per year. And I honestly don’t think it would increase by that much.

But why not just ask the Providence tax assessor directly though? You don’t have to give your address if you just call them up to ask a hypothetical question, if that’s your concern.

On the insurance question, I would imagine you would pay a little more since it’s extra living space someone would be occupying (slightly more risk).

However if it really is a family member and not a tenant, then I wouldn’t imagine it would be a lot more.

You can ask your insurance agent this before you buy though, and s/he should be able to give you an estimate of what the whole bill would be.

You definitely want to keep your insurance agent in the loop about your proposed use for the building/space, especially before you buy, so s/he can make sure you have the proper coverage.

@Fay Brown every single time I’ve bought property there’s been some compromise.

It is extremely rare to find exactly what you want in any market, though obviously it’s easier in buyer’s market (ten years ago) then a seller’s market (today).

A good real estate agent should be able to help as far as what are realistic expectations and what are some areas where compromise might be advisable, in order to open up the field of possibilities a bit.

It's definitely true though, that type of financing (or lack thereof, in your friend's case) has no effect on determine what's out there, available in the market for making an offer.

My usual advice here is: Make your own market. Call on “for rent” signs to ask if the owner has thought about selling, do direct mail marketing or cold calling to owners of properties in your desired area that meet your criteria, etc.

Sometimes people even make deals with family members who were about to list a property or were thinking about selling, and are much happier selling to a family member once they knew s/he was looking to buy.