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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Illegal improvements detract from fair market value... Posted by Ward-CA- on March 31, 2004 at 6:45 PM In Reply to: guest home posted by g.castro on March 31, 2004 at 9:33 AM : WArd,a property that I am looking at is valued at 270k, it has a litle guest home in the back, they built it and it has no permits. The problem is that the owner says that the value of the property should be more than just the value of the property, since it has that guest home in the back. I am not sure how to approach this scenario. Should I disregard the guest home from being there when presenting my offer, since it doesn't have any permits? Or how would you approach this? ============= Gonzalo, An illegal, non-permitted improvement to real property detracts from the overall property value rather than adding anything to it. The illegal improvement tends to cast dispersions and doubt on the legality of all other improvements on the property, detracting from its real value. The way most people will look at the situation is they will have to deduct from the normal value of the property the cost of dismantling and removing the non-permitted improvements. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : WArd,a property that I am looking at is valued at 270k, it has a litle guest home in the back, they built it and it has no permits. The problem is that the owner says that the value of the property should be more than just the value of the property, since it has that guest home in the back. I am not sure how to approach this scenario. Should I disregard the guest home from being there when presenting my offer, since it doesn't have any permits? Or how would you approach this? : ============= : Gonzalo, : An illegal, non-permitted improvement to real property detracts from the overall property value rather than adding anything to it. The illegal improvement tends to cast dispersions and doubt on the legality of all other improvements on the property, detracting from its real value. : The way most people will look at the situation is they will have to deduct from the normal value of the property the cost of dismantling and removing the non-permitted improvements. : : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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