Real Estate -? on home being appraised for more than the value

[Isabelleblue]

What is the name of your state (only U.S. law)? I live in California, and purchased a home in 2004. The MLS listing featured a 1000 sq foot family recreation room, with television, bathroom and living space. The real estate agents used this as a selling point. The owners did not disclose it was not permitted - except to the appraiser. The appraiser did not disclose this to the real estate agents, according to the agents. The appraisor appraised this 1000 sq feet same as the sq footage of the rest of the living space. This recreation room was actually an extension of a garage that they had painted some plywood and divided it between garage and garage, and made has the garage resemble a living family room. In fact it was permitted only as a garage work shop and due to it being seperate from the house - was not legal to occupy as a living space.

My question is, I paid more for the home than it was worth because the appraiser knowing it was not permitted still appraised it at one price for the rec room and a much much lower sq footage price for the garage. The owners who were suposed to leave all the original plans to the house, took them and we finally got the plans 4 months later through an attorney. We did not open them for a year after doing a cosmetic remodel in the recreation room to find out it was never permitted to even live in.

Do I have any recourse it is 5 years later. My real estate agent wanted nothing to do with it, and left me on my own to seek counsel.What is the name of your state (only U.S. law)?

[Ohiogal]

No. You were expected to do due diligence. You had the plans and such and let them sit there unopened .. now it matters? You could have determined all this BEFORE you bought the house. Also have you had the home re-appraised to prove what you are saying -- granted five years later the real estate market has changed substantially and an appraisal today is NOT going to show what a house would have been worth FIVE YEARS ago.

[HomeGuru]

Originally Posted by Isabelleblue

What is the name of your state (only U.S. law)? I live in California, and purchased a home in 2004. The MLS listing featured a 1000 sq foot family recreation room, with television, bathroom and living space. The real estate agents used this as a selling point. The owners did not disclose it was not permitted - except to the appraiser. The appraiser did not disclose this to the real estate agents, according to the agents. The appraisor appraised this 1000 sq feet same as the sq footage of the rest of the living space. This recreation room was actually an extension of a garage that they had painted some plywood and divided it between garage and garage, and made has the garage resemble a living family room. In fact it was permitted only as a garage work shop and due to it being seperate from the house - was not legal to occupy as a living space.

My question is, I paid more for the home than it was worth because the appraiser knowing it was not permitted still appraised it at one price for the rec room and a much much lower sq footage price for the garage. The owners who were suposed to leave all the original plans to the house, took them and we finally got the plans 4 months later through an attorney. We did not open them for a year after doing a cosmetic remodel in the recreation room to find out it was never permitted to even live in.

Do I have any recourse it is 5 years later. My real estate agent wanted nothing to do with it, and left me on my own to seek counsel.What is the name of your state (only U.S. law)?

**A: you may have recourse againts the real estate appraiser. Non-permitted structures should have no value and the fact that there was no permit for the area should have been noted in the appraisal report.