Dallas-Fort Worth Real Estate Investor Club

Selling a house when Garage Conversion may not be included in SF...

  • 24 May 2021 2:14 AM
    Message # 10543294
    Cindy Carriger (Administrator)

    Looking at a house to rehab then sell retail.

    This house has a decent gar. conversion used as interior space for a DEN. 
    Since there is a DETACHED 3 CAR GAR. at the rear of the property (with a driveway up to it), I don't feel compelled to change back to a garage (albeit it would be attached).

    Will I be able to INCLUDE the 500 or so sf. in my ARV, thus my final sales price?  

    There is an APPRAISAL done in Feb for the seller that does include the space for the garage. 

    Here's my question:

    In order to 'count' that gar. convers. space, will I be required  (by a future appraiser or any 'entity'), to get the conversion added to the SF on the TAD by finding out if it was or wasnt permited?   ...and if area was not permitted, then i can do what is needed to do to get it permited, at which time, the SF can then be 'officially' added to the SF of the house and reflected in the sales price.

    My thoughts on this...

    I am of the opinion, if I rely on the Appraiser's SF evaluation when I go to list it (note, i did not hire this appraiser, the Seller did), then, I can list it for the sf "by appraiser"  therefore enabling my ARV or Market Value listing to include that SF (which is  'in question') to achieve a greater market value. 
    Then, if a seller doesn't want to rely on that information, at that point, I can just let them walk away, then find a buyer who is not concerned about the SF inconsistency, right?

    Thanks for any insight you may have and share!

  • 25 May 2021 1:43 PM
    Reply # 10552303 on 10543294

    Since you have a written appraisal with that sqft included, I would feel comfortable listing it with the sqft included and say the source for that is appraiser.  You are not lying or misleading in any way.  You are stating the source.

      Neil Aggarwal
      Property Financing, LLC

    Last modified: 25 May 2021 1:44 PM | Neil Aggarwal
  • 07 Jun 2021 7:53 PM
    Reply # 10602887 on 10543294

    I know I'm late with this response but I've sold several with really good garage conversions. If there is a detached garage on the property you should get full value for the conversion as long as it was completed properly. If you have no garage on the property at all (due to the conversion) then I've had appraisers alot 50% of the original house sq/ft value to the conversion because of the loss of the garage. As you know, all appraisers assess things differently so its always subjective. 

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