Flip This House - The Reality

<p>Most likely, nothing, since they don’t know. However, if some how the city/county found out, they likely want to remove those Additions to the original structure or an extra illegal kitchen. Also, if there is a problem from the new buyer, they can sue you for the unpermitted portion if you have not disclose it upfront. You often see the followings in a real estate sales description:</p>

<p>“Unpermitted in-law suit, sold as is”</p>

<p>artloverplus:</p>

<p>Given that there’s a lien and that you want to sell within 2 weeks, it changes the equation so maybe getting rid of it is the best course. However, what exactly is the lien for and does simply tearing down the cover really eliminate the lien? Won’t you have more hoops to jump through just trying to get the lienholder to do something to get rid of the lien? You probably should focus more on the lien itself than the cover unless you already have that sorted out.</p>

<p>Ggd
I hear you, but i have to take the word from the building department inspector’s word to act upon. The lien was from the building department.</p>

<p>“Most likely, nothing, since they don’t know. However, if some how the city/county
found out, they likely want to remove those Additions to the original structure”</p>

<p>I can’t see a problem until they decide to sell (or are deceased, and we sell). But I can’t imagine how anyone could remove the additions, seeing as it was a one bedroom house that they dug a basement to, expanded on all sides and added two stories. I don’t know, maybe they did get permits, but who knows if permits were even required fifty years ago.</p>

<p>Cities have photos and drawings of the original structure. So they can figure out what was done to it afterwards with or without permit.</p>

<p>I’m an architect, and I deal with illegal additions all the time. Mostly when the owners want to sell and don’t have a C of O. At least around here, step one for new buyers is to go to the building department and assessors office and see what the city thinks you have, if there are extra bathrooms, unrecorded basements etc. they have to be legalized and often brought up to current codes. It’s a big hassle for everyone involved.</p>

<p>Mathmom</p>

<p>The question has been: how does the city know you have an illegal structure?</p>

<p>Generally the city only knows if someone complains, but if they are inspecting a house and see work being done next door without a permit they definitely check it out. In certain neighborhoods where there are a lot of immigrants unfamiliar with our laws who are basically turning their houses into rooming houses, there is a housing inspector who makes the rounds. I get called in for a lot of these too if the owners want to keep at least some of the work they did. Sometimes I can at least give them a legal two family house.</p>

<p>One more thing about an un-permitted larger structure. If and only god forbid, there is a fire and they found the fire was from the illegal structure, the insurance may not cover. Insurance companies do every thing they can to get out of a claim.</p>

<p>Artlover, how is the patio saga going?</p>

<p>The buyer will waive the violation and take the patio cover as is. Problem solved.</p>

<p>Wow, you really dodged the bullet. Hope they realize they have to get rid of that lien before they sell in the future, but I’m sure they realize that.</p>

<p>“Wow, you really dodged the bullet.”</p>

<p>Not yet! Yes, they waived the patio cover thing, it was build ok and looks good anyway. I think it will pass the inspection even a permit is applied.</p>

<p>But now, the buyer has a new idea. Since the house has Gas stations on two sides, now they want to do an environmental study which I object. I think it will fall out of escrow.</p>

<p>Just do I can learn from your difficult situation, why would you object if they pay for the study? Because it will take too long? Or is it because it might come back with something really bad and then you are obligated to disclose in future,?</p>

<p>Meant <em>just so</em></p>

<p>I am a land development specialist broker. I know the process of environmental study well, I am selling the property as a duplex, I am not selling a development project, I am not interested in an all drawn out entitlement process. The extra land came with the deal is just a yard, I do not wish it to be viewed as a lot for development.</p>

<p>Lo and behold, I was told they want $10,000 credit at the COE to compensate environmental study, of that, I flatly refused.</p>

<p>Good morning everyone, I am back from my long vacation. Something you should never do in our business… leave a project hanging while you go off on vacation. I just couldn’t help it. I had hoped to be done with project before I left and just managing the dozens of multiple offers coming in while I was gone (wishful thinking).</p>

<p>The competitive flip project that we were watching on Dale St finally sold on 11/13/2013. It was listed for over 6 weeks before it went into contract. They started at 469,000 with 2.5% buying agent commission. That listing expired after 30 days at $465,000. They brought it out as ‘new listing’ priced at $460,000 but offering 3.5% buying agent commission.</p>

<p>It expired again on 10/1 and then they brought out ‘new listing’ at $450,000 with 3.0% agent commission. It went into escrow and finally closed for final sales price of $445,000.</p>

<p>Even at $445,000 this is good news for my project because we are hoping to sell between $425,000 and $430,000 and we are a much more desireable location.</p>

<p>I will provide a full update on our project later today. We are done with everything except the two difficult issues - front porch and garage.</p>

<p>P.S. I made an offer on this same house but a competitor went way over asking price and purchased it for $342,000 with a commission refund from their buying agent, let’s say $7k. So, they purchased for $335,000. It had the same amount of work required, even had worse foundation issues. I don’t know how much they spent renovating the property, probably a lot less than I did :slight_smile: Remember it had the ugly kitchen (cheap Home Depot Cabinets) and break in the flooring to the kitchen.</p>

<p>So, if they spent only $50k renovating and some carrying costs, I am guessing their total cost is about $395,000. Sale of $445 less commission/sales costs netted them about $420,000 so they made about $25,000 on their project.</p>

<p>How was the trip? Also, good news on them being able to sell in a price range that looks good for you. :)</p>

<p>I also didn’t realize it was possible for listing a house with different offers on commissions for the buyer’s agent. Figured it was some standard amount so you wouldn’t have to worry about your agent filtering properties for you based on their commission.</p>

<p>I won’t be interested at all for a 20K profit on a house that require 50k renovation. The time spend on managing the project is worth lot more.</p>