Pros and Cons of Unpermitted Square Footage When it Comes to Property Taxes

[Melissa A.]

My understanding on this is that if you build it unpermitted, the benefit at that time is that your property value likely won't increase because the square footage is not assessed to increase the value of your home and therefore the property taxes. However, when you sell it, will the assessor consider the additional square footage in the assessed value or only use the permitted square footage? 

[Chris Seveney]

Quote from @Melissa A.:

My understanding on this is that if you build it unpermitted, the benefit at that time is that your property value likely won't increase because the square footage is not assessed to increase the value of your home and therefore the property taxes. However, when you sell it, will the assessor consider the additional square footage in the assessed value or only use the permitted square footage? 

 If you build it unpermitted and you go to sell it you will need to disclose that to the buyer which could impact their financing and your price. Also if there was an accident or fire your insurance company would not cover unpermitted work. To get work inspected and permitted is typically not super expensive so just do it the right way.