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All Forum Posts by: Timothy G Dunson

Timothy G Dunson has started 14 posts and replied 61 times.

Post: Need help with what to do with my expensive but poor HVAC install

Timothy G DunsonPosted
  • Real Estate Agent
  • San Antonio, TX
  • Posts 64
  • Votes 12

Good morning all,

I recently bought and renovated a house. With that renovation came a new air conditioner and insulation in the attic to help ensure the AC would work properly. In all I spent 11k on it 7 for the insulation and 4 for the new AC unit.

Since then I've had numerous problems with the unit not working well or at all. I've had it serviced for a frozen coil twice, the overflow has turned it off multiple times and in general will not keep the house below 78° during the day. I feel like I paid enough money for it to work flawlessly year around but has been nothing but problems which is really inconvenient because I run the unit as an Airbnb. Also installed a Google nest so the client's can't turn the air too low.

My question is what can I do with the contractor that installed the unit? At this point I either want a new unit or someone else to do another install because the this one is not doing the job I expected when I paid $11000+.

Thanks for the input as always BP!

-Graham

Post: Unpermitted bedroom addition

Timothy G DunsonPosted
  • Real Estate Agent
  • San Antonio, TX
  • Posts 64
  • Votes 12
Originally posted by @Bruce Woodruff:

How much area are we talking? A typical room is 12 x 12, so less than 150 SF...? It may not be worth getting involved with, particularly if you really want the house....

And did they replace the dining room? IF you decide to go down that road, you could say - "Hey, we really like to entertain, and the lack of a dining room is a big deal for us, it's going to cost $5000 to put it back to the way it was and we'd like a credit for that"

Or would you rather have the extra bedroom...?

Too many variables here.....you gotta make the call. What does your Realtor say?

 If I assume 144 sqft at $165 a sqft that's about 24k. So half would be 12k. I'm going to ask for 12k price reduction, or 12k credit or them to get the room permitted by the city. Do you think that's reasonable? Worst they can say is no right? Realtor wasn't much help he said at first "they wouldn't need to get a permit for that". And "it shouldn't affect the appraisal". I said "if you don't think it'll affect the appraisal then I won't worry about it". Then he back tracked a little and  said "I don't know if that will affect the appraisal" and "all the comps will probably be for 2/2 per side". 

Post: Unpermitted bedroom addition

Timothy G DunsonPosted
  • Real Estate Agent
  • San Antonio, TX
  • Posts 64
  • Votes 12
Originally posted by @Bruce Woodruff:
Originally posted by @Jonathan Greene:

I don't what differential in permitting everyone is talking about...... so maybe I am confused as to what is happening here.

Yes.....I came across this a lot when I did Home Inspections for a while. When I would discover (or suspect)  that some part of the house was non-permitted during my inspection, I was usually asked to sit in (and give advice) on the conversation with Realtor and Buyer. There was always the concept that they were not going to pay living space prices for non living space. Or bedroom prices for a dining room. Similar in a way to the rule that a bedroom must have a closet. It makes sense if you think about it. At least to me.

 My bad Bruce. You already answered that.

Post: Unpermitted bedroom addition

Timothy G DunsonPosted
  • Real Estate Agent
  • San Antonio, TX
  • Posts 64
  • Votes 12
Originally posted by @Bruce Woodruff:
Originally posted by @Jonathan Greene:

I don't what differential in permitting everyone is talking about...... so maybe I am confused as to what is happening here.

Yes.....I came across this a lot when I did Home Inspections for a while. When I would discover (or suspect)  that some part of the house was non-permitted during my inspection, I was usually asked to sit in (and give advice) on the conversation with Realtor and Buyer. There was always the concept that they were not going to pay living space prices for non living space. Or bedroom prices for a dining room. Similar in a way to the rule that a bedroom must have a closet. It makes sense if you think about it. At least to me.

 What advice do you have for me? Since you've delt with this extensively

Post: Unpermitted bedroom addition

Timothy G DunsonPosted
  • Real Estate Agent
  • San Antonio, TX
  • Posts 64
  • Votes 12
Originally posted by @Jonathan Greene:

I don't what differential in permitting everyone is talking about. You can use a room however you like and you don't need a permit to sleep in your living room if you want to. What are the permitting aspects that you are talking about? Are you saying it's listed as a 5 BR, but really is a functional 4 BR? That's just how it's listed and does not have anything to do with permitting, at least not in my state. If it was an unpermitted bathroom where plumbing and electric were added without permits, this makes sense, but turning a dining room into a bedroom can mean just moving a bed in so maybe I am confused as to what is happening here.

 At some point the dining room was walled off and turned into a bedroom. Wouldn't you have to get a permit for that? I don't know how anything works. I just assumed you did for tax purposes.y inspection hasn't come back yet so I don't know if it's up to code or not but it has a closet and window.

Post: Unpermitted extra bedroom

Timothy G DunsonPosted
  • Real Estate Agent
  • San Antonio, TX
  • Posts 64
  • Votes 12
Originally posted by @Corby Goade:

What does your realtor say? Depending on how your offer is written, you may not have to worry about coming out of pocket based on the appraisal, hopefully your contract protects you from that possibility. 

Permitting issues vary wildly depending on how aggressive your municipality is about enforcement. My city isn't aggressive at all, so I need to look at it more from a liability standpoint- is the structure safe?

The simple answer to your question is you can ask for whatever credits or concessions you want (assuming your offer provides you that opportunity). The worst thing that can happen is the seller says no. 

Good luck!

 My realtor said 2 things. 1 he doesn't believe it will affect the appraisal. 2 they may not have needed to pull a permit to do it. I don't know if I believe either of those things though. My worry is it appraises low and I have to cover the difference because there is no appraisal contingency. Or lose my earnest money. I'd like to negotiate during the inspection period because I do have a inspection contingency

Post: Unpermitted extra bedroom

Timothy G DunsonPosted
  • Real Estate Agent
  • San Antonio, TX
  • Posts 64
  • Votes 12

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!

Post: Unpermitted bedroom addition

Timothy G DunsonPosted
  • Real Estate Agent
  • San Antonio, TX
  • Posts 64
  • Votes 12
Originally posted by @Bruce Woodruff:

Getting old work permitted is really difficult - ask me how I know. Here is what I've seen a lot of people do: if it is non - permitted LIVING SPACE then it is not worth the same $ per SF. 

So for the unpermitted area, pay them 50% of the rate that the rest of the house is valued at. If the house is at $300 SF, then offer them only $150 SF for the area in question.

If you want the house that is....

 So it's not exactly an addition. They took the dining room in one of the units and turned it into a third bedroom. Are you saying still apply that rule of thumb?

Post: Unpermitted bedroom addition

Timothy G DunsonPosted
  • Real Estate Agent
  • San Antonio, TX
  • Posts 64
  • Votes 12
Originally posted by @Dustin Allen:

@Timothy G Dunson

Start with asking if they even knew it was unpermitted in the first place. Chances are good they bought it like that and had no idea. If they didn’t know, now you have a negotiation point. Figure out what it will cost to get it permitted or to convert it back and factor that into your negotiations.

 That would be put into seller disclosures right? And they didn't have any. So that would answer that question right?

Thanks for the advice! Definitely doing exactly that. 

Post: Unpermitted bedroom addition

Timothy G DunsonPosted
  • Real Estate Agent
  • San Antonio, TX
  • Posts 64
  • Votes 12

Hey everyone,

im under contract on a 5/4 duplex. I just found out that they turned the dinning room into a 5th bedroom in one of the units. The house is for sale as is. It seems to be priced as a 5/4 and not a 4/4. The seller didn't mention an unpermitted bedroom in the seller's disclosures. 

My question is. What should I do? Ask them to get it permitted? Ask for a credit? Ask them to change it back to a 4/4? Ask for a price reduction? Or just pull out of the deal?