How to show addition

Question

I'm working a rehab & sell on a smaller house that was originally a little over 1400 square feet.  It has an addition on it that is about 250sq ft.  Tax records still show the 1400 square feet size.

When I go to sell it, how should I show the size?   I have seen MLS showing on some houses where it is listed as 1400/tax, or 1650/owner, or 1650/appraiser (assuming you got the square footage from an appraisal).

Any suggestions on how to proceed?

Account Closed · Answer

First I would want to verify that appropriate permits and inspections were done.  I have seen way to many cases where problems came up because unpermitted work.

Buyers may have trouble before or after a purchase.  Appraisers may lower the Market Value because of the unpermitted work or not remedies that must be done to have a certain value.  The county may also make issue of the unpermitted work.

All in all.  I would want to make sure the proper permits and inspections are recorded.  It is quite possible though that the online records are not up-to-date.  Researching the records at the county office may give you the information without unnecessarily informing the county at this time possible unpermitted work was done.

Jon Holdman · Answer

It cost me about $15,000 to learn this is absolutely not true. If you're the seller, you're responsible.

Account Closed · Answer

jon's absolutely right..every time i've bought a house with a strange addition, it's been gutted so we can show the inspector that we've redone it the right away..as far as the measurements, just take a buddy with you and measure the house...in my area, you'er allowed a 10% variance, so i feel comfortable that i can hit within 10% of the true square footage :)

Shane Woods · Answer

Awesome @steve thanks!

Steve Babiak · Answer

I'm not @Jon Holdman, but this is the thread, I believe:
http://www.biggerpockets.com/forums/67/topics/52780-don-t-mess-with-building-inspectors

Shane Woods · Answer

Hey @jon, please eleborate on this experience, or direct us to the thread where you already have.  This is really important stuff for us newbies to keep fresh on the brain to make sure we figure costs & purchase decisions properly.

Thanks!

Grant P. · Answer

Pay to have the property measured and use that info.

Tax records are often outdated, and we do this all the time when listing a property for sale.  If you did not do the unpermitted work, and have been transparent with your disclosure, then you will be fine.

How to show addition

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