Improve salability of home riddled with permit issues

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Q: I'm having trouble selling my place because I added a second kitchen in what was the garage without permits. My bad, but I will have to take it out to get conventional lending. It's a two-story house with one bedroom (with a walk-in closet), a living room and kitchen in the upstairs unit. The downstairs has a kitchen and dining area in the converted garage space, another room that can be used as a bedroom with closet space under the stairwell, and a three-quarter bath. This is on one acre of horse property on a dirt road with a section of state land across the street. It was listed last summer and had four offers within a month, but because I didn't have the permits for the second kitchen no lender will finance the place. Here's my question: Should I spend the money to install a real closet in the downstairs bedroom, or just leave it as it is? --Jan A: It sounds like the big selling point of your place is its fundamentals, the land, the horse zoning and the location ne...