Garage converted room in Broward County (Miramar: for sale, insurance, mortgage)

[gator1343]

I am selling my house in Miramar, Florida and I kind of converted the garage to an extra room. We kept the garage door and a little storage area...added a drywall, and a closet. No outlets have been created..the floor and the walls painted but no modification on the floor besides that. I have put my house for sale and I am starting to get really worried about the inspection time. No permits have been pulled and the work was done by a friend. Any insights on what my best course of actions before inspection time are greatly appreciated

[BNBR]

Originally Posted by gator1343

I am selling my house in Miramar, Florida and I kind of converted the garage to an extra room. We kept the garage door and a little storage area...added a drywall, and a closet. No outlets have been created..the floor and the walls painted but no modification on the floor besides that. I have put my house for sale and I am starting to get really worried about the inspection time. No permits have been pulled and the work was done by a friend. Any insights on what my best course of actions before inspection time are greatly appreciated

Don't worry about it. Tons and tons of houses have non-permitted conversions. It's up to the new owners if they want to accept the work like that or not, but they "know" and it's simply not going to be an issue.

[independent man]

Originally Posted by gator1343

I am selling my house in Miramar, Florida and I kind of converted the garage to an extra room. We kept the garage door and a little storage area...added a drywall, and a closet. No outlets have been created..the floor and the walls painted but no modification on the floor besides that. I have put my house for sale and I am starting to get really worried about the inspection time. No permits have been pulled and the work was done by a friend. Any insights on what my best course of actions before inspection time are greatly appreciated

If the buyer's paying cash, no problem. It's up to the buyer to accept or not any substantial work done without a permit. If a mortgage lender is involved requiring an appraisal, it may be another matter. Appraisers ask for permits on substantial additions or renovations they may be asked to credit. If a bedroom or other substantial renovation isn't permitted, it may not be counted as part of the house's appraised value for the lender.

[gator1343]

Thank you...that agrees with my research so far...if a lender gets involved it can get complicated..even if the city allows for conversions..they still want to see everything is done up to building codes ...the house was just put for sale and my first prospect is a cash buyer possibly..so that would be nice..if that does not work I will probably have the wall removed..another issue the property is tenant occupied and they are using that bedroom...omg...

[thebigW]

The entire South Florida area is filled with garage conversions, many unpermitted. They are sold regularly with mortgages.

Appraisers see these frequently and know how to value them for the lender. You can always tell the appraiser that if it will be a problem, they can make it "Subject to" and you will remove the wall. It may or may not be necessary. It depends on the lender, appraiser, and your neighborhood.

The most likely scenario is that it will be considered a garage, with a nominal "cost to cure" to remove the drywall. I wouldn't worry too much. Wait until you know what, if anything, you will need to do. The garage conversion may be the reason someone wants it.

[BNBR]

Originally Posted by thebigW

The entire South Florida area is filled with garage conversions, many unpermitted. They are sold regularly with mortgages.

Appraisers see these frequently and know how to value them for the lender. You can always tell the appraiser that if it will be a problem, they can make it "Subject to" and you will remove the wall. It may or may not be necessary. It depends on the lender, appraiser, and your neighborhood.

The most likely scenario is that it will be considered a garage, with a nominal "cost to cure" to remove the drywall. I wouldn't worry too much. Wait until you know what, if anything, you will need to do. The garage conversion may be the reason someone wants it.

This is 100% the correct answer. You can't look at houses in South Florida and not come across tons of garage conversions. It's crazy common.

[ruski]

Originally Posted by BNBR

This is 100% the correct answer. You can't look at houses in South Florida and not come across tons of garage conversions. It's crazy common.

Just like people not using turn signals.

[BNBR]

Originally Posted by ruski

Just like people not using turn signals.

Don't get me started....

[blueherons]

It must be permitted or it will not pass inspection and will not be able to be insured and will not qualify for a mortgage.

No homebuyer will buy it as is with it being an unpermitted addition.

No insurance company will insure it.

Either pull the permits now and pay to have it brought up to code, or convert it back.

FWIW, I ALWAYS include on my sales that the seller is responsible for making whole any upgrades that are not permitted on the seller's dime.

I do this for the above.

If the city finds out, they will fine you $100 per day until it is reverted back or brought up to code.

Contrary to the above, there are no longer a lot of unpermitted add ons all over the city.

FWIW, your insurance can refuse to pay a claim with your unpermitted addition.

[BNBR]

Houses sell with unpermitted modifications every day, all the time. Heck, my own home had an unpermitted room built in the garage, AC and all. It never even came up in the inspection or closing. No issue with insurance, either. I wouldn't even concern myself with it unless it actually becomes an issue. At which point, it's a very simple removal of a wall - a few hundred bucks.