Unpermitted extra bedroom

[Timothy G Dunson]

Hey bp,

I made an offer on a 5/4 duplex. 3/2 in one unit and 2/2 in the other. 2270 sqft. I got my offer accepted for 375000 but the seller wanted not appraisal contingency. 

i just found out that the 3rd bedroom on the 3/2 side is actually the dining room converted to a bedroom with no permit. The tax records still say it's 4/4 house. My worry is that it's not going to appraise because I believe it's priced as a 5/4 and the appraiser is going to appraise it at a 4/4 and I'm going to have to come out of pocket to make up the difference. Do you guys think it will appraise the same?

If not I was thinking about asking for one of the 4:

25k discount 375k- 350k

10k credit

Get the bedroom permitted

Add the appraisal contingency back

Are these reasonable? Am I overreacting? Is there anything else I could do? Gimme your thoughts!