I have a house Im potentially appraising (havent started yet, dont even have an order.. but I've been getting questions about it). The house is 2 stories, newer construction, however the 2nd bath located upstairs is not sheetrocked, the fixtures are in, its insulted where it needs to be, plumbing and electrical are all done, just no 'finish' work. My first reaction is that it must be finished. I beleive thats a fannie mae requirement, all above grade square footage besides attic area must be complete. When questioned about this, that was my response, and they are questioning what my conditions will be for the report. I beleive it is my responsibility to absolutely disclose everything I'm aware of, and its even a requirement that I take photos of every bath anyway, but the realtor wants to know if I would be requiring this to be finished for the appraisal or not. I've heard several schools of though on this, the one that makes the most sense to me (please correct me if I'm wrong), is that it's not necessarily the appraisers job to require corrections of this nature, and I don't beleive this to be an adverse 'safety soundness or security' item. However it IS my job to disclose everything about the situation, and let the underwriter decide how they would like the situation handled. I will have to address the effects of marketability for only having 1 functional bath and make adjustments, or maybe Ill do a cost to cure for the finish work. By the way, the house is vacant, it's a short sale, currently held by the bank that supposedly is getting the purchase transaction though, so its suppose to be in-house 'so I was told'. Am I on the right track with this?