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  1. #1
    Join Date
    Jan 2019
    Posts
    2

    Default Can an Owner Change the Property Assessment Mid-Negotiation

    My question involves real estate located in the State of: California

    Hi. I'm renting a property that I'm currently in mid-negotiation to purchase from the owner. I've had about 6 inspections from various professionals done; the only one I'm waiting on still is the Independent Appraiser's report, but he's indicated to me that not only is the property a 2 BR, 1 BA, but also that he's planning on reducing the square footage GLA of the house by 30% due to non-permitted addition in back. The Owner doesn't know this yet. In addition, I've confirmed with my Contractor, Home Inspector, Foundation / Pest, Sewer Lateral and Plumbing professionals (with estimates) that there are a great number of repairs necessary to transform this 100-year old building into a permitted and habitable one. Meanwhile, the Owner's been driving hard to have this property assessed as a 4 BR home in contradiction to every online assessment available. He's done this all mid-negotiation, without an agent. Do I have any recourse to this bait and switch?

  2. #2
    Join Date
    Jan 2006
    Posts
    38,347

    Default Re: Can an Owner Change the Property Assessment Mid-Negotiation

    I don’t see any bait and switch here. You appear to be moving through the sale with due diligence in mind. Hopefully you have proper contingencies within the contract that will allow you to escape the contract should there be issues such as you are describing that can’t be resolved.

  3. #3
    Join Date
    Oct 2006
    Posts
    15,187

    Default Re: Can an Owner Change the Property Assessment Mid-Negotiation

    You are seriously playing hardball with the guy and he is doing the same. That is normal negotiations. Just remember that you both have the right to walk away from the deal if you are still in negotiation.

  4. #4
    Join Date
    Dec 2018
    Posts
    168

    Default Re: Can an Owner Change the Property Assessment Mid-Negotiation

    If they are not permitted bedrooms through the City, then the bank will not see it as a 4 bdrm and not loan for a 4 bdrm either.

    I am currently doing a $150K remodel on a newly purchased home. The homebuyer did not do a thorough inspection pre-purchase and was only expecting it to be about $75K. Don't end up like him.

  5. #5
    Join Date
    Mar 2013
    Posts
    16,751

    Default Re: Can an Owner Change the Property Assessment Mid-Negotiation

    Quote Quoting tomb83
    View Post
    Do I have any recourse to this bait and switch?
    Do you have a signed contract?

    If not, there is no bait and switch. He can do whatever he wants to make the deal to his advantage until you have a signed contract saying what you are buying and for how much.

  6. #6
    Join Date
    Jan 2006
    Posts
    38,347

    Default Re: Can an Owner Change the Property Assessment Mid-Negotiation

    Quote Quoting Chuck77
    View Post
    If they are not permitted bedrooms through the City, then the bank will not see it as a 4 bdrm and not loan for a 4 bdrm either.

    I am currently doing a $150K remodel on a newly purchased home. The homebuyer did not do a thorough inspection pre-purchase and was only expecting it to be about $75K. Don't end up like him.
    A bank lends on value. While having 4 bedrooms can affect the value if you compare it to a relatively identical construct with fewer bedrooms, it is only a part of establishing value. I can show you a million dollar 2 bedroom house and a $20,000 4 bedroom house. The bank doesn’t care how many bedrooms there are. It wants to be assured they are lending less than the house’s established value. Op appears to be pretty savvy regarding the issue.

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