In Los Angeles more than 20% of the homes for sale have zoning violations or square footage added without a permit. These violations can lead to serious issues for both buyers and lenders, when they try to determine the value of a home for conventional loans. Unlike most banks and lenders who outsource their appraisals to appraisal management companies, we utilize our own hand selected panel of appraisers who on average have more than 20 + years of experience doing appraisals in Los Angeles. More importantly, our panel and underwriting team is up to date on recent changes to all investor guidelines including Fannie Mae; such as the ability to give value to an unpermitted area that are part of the main living area and are completed in workman like manner. This depth of understanding may be the difference in obtaining a sound appraisal that will allow your loan to be approved quickly so you can get to your closing. Timely delays caused by appraisal issues are the most common reasons buyers miss out on opportunities to buy their dream home or investment.
We recently financed a property in Highland Park where 35% of the living space was unpermitted. At a purchase price of $975,000, this could have had a detrimental impact on our client's home purchase, and required them to increase their down payment or cancel the purchase altogether. Fortunately, our experienced appraisal team was able to locate three similar properties and were able to peg the appraised value at an acceptable $975,000.
Do not risk your home purchase or refinance. Stay in control with our trusted and experienced appraisal team.