12/04/2023
I get asked all the time whether or not the lack of permits impact the value of a home. Here's what one of our local expert appraisers, Lundquist says:
"No permits? People ask me how appraisers will respond to a lack of permits, but there isn’t a one size fits all answer. The truth is, when an addition or something big is not permitted, it infuses uncertainty into a transaction. We never know how an appraiser, lender, or even buyers are going to respond to a lack of permits. Moreover, sometimes no permits can be a huge deal for certain locations. In the City of Davis, for instance, there is a program where code enforcement makes sure everything is permitted before an escrow can close. That doesn’t happen anywhere else in the Sacramento region, but it goes to show that location is also a factor. In short, there is no black-and-white answer here."
Any thoughts?