Thank you @Scott Ryne it's amazing that you explaining what I want say in a lot better way. the projects it might be small or big and either he is under paid or over paid very true. in addition that it's my benefit to reduce cost and the bigger the project the better his fees, I feel it's not fair.

I am new to REI and want to get into wholesaling initially to build some additional investing capital.

The addition income without addition expenses adds value to the property. 

The agent was worried that it might raise a flag with the assessor with maybe an un-permitted addition or something.

Foreclosure would most likely lead to additional profits, not losses for investors.

@Rita Koroll,As for HOAs, you need to consider them as an additional operating expense just like property tax.

I second all of the advice from the other posts. in addition to all of that, I would say connect with me and add me to your buyers list! 

Such cases lead to great discounts and "buying right".  

Additionally, if the deal falls through am I to be left with the legal fees?

This addition is designed as a completely separate unit however it can easily flow into the existing house, creating a 3/2 with minimal work if needed.