Valuing Funtional Obsolescence

[christo4]

Got a tricky one for me to work through.

Situation:
*Ranch style home
*Basement
*No interior access to basement (only exterior)
*Built more like a duplex (zoning will allow but permits and inspections are as high as $25k depending on the city's findings + getting the property up to code so probably making it incurable).
*No stove or cooking device in the basement
*County considers it a duplex solely based on the word of the owner (no inspection done)
*City considers it a SFR as it has not been inspected to code requirements and proper permits have not been obtained.
*Basement is only 500 sq ft
*Ripping up the flooring to insert a stairwell is probably not possible because the stairwell would be so steep it may not meet code. Not only that, the placement in the main level may cause functional obsolescence as well. The only way I see this happening is a spiral staircase.

The only way I can see appraising this is with functional obsolescence and adjusting based on the cost of a spiral staircase or possibly enclosing the exterior stairwell with exterior walls and an door from the interior.

ANY THOUGHTS GREATLY APPRECIATED!

 

[RSW]

What if a landing was installed half way down the stairs?

 

[BRCJR]

What is the level of finish of the basement? What is the ceiling height?

 

[J Grant]

Got a tricky one for me to work through.

Situation:
*Ranch style home
*Basement
*No interior access to basement (only exterior)
*Built more like a duplex (zoning will allow but permits and inspections are as high as $25k depending on the city's findings + getting the property up to code so probably making it incurable).
*No stove or cooking device in the basement
*County considers it a duplex solely based on the word of the owner (no inspection done)
*City considers it a SFR as it has not been inspected to code requirements and proper permits have not been obtained.
*Basement is only 500 sq ft
*Ripping up the flooring to insert a stairwell is probably not possible because the stairwell would be so steep it may not meet code. Not only that, the placement in the main level may cause functional obsolescence as well. The only way I see this happening is a spiral staircase.

The only way I can see appraising this is with functional obsolescence and adjusting based on the cost of a spiral staircase or possibly enclosing the exterior stairwell with exterior walls and an door from the interior.

ANY THOUGHTS GREATLY APPRECIATED!

Is this an as is appraisal? Is it ordered as a single family, or ordered as a small income property?

It sounds to me from what you posted that it is a single family with a basement with no interior access to basement, must enter basement from exterior. It does not sound like a duplex from what you posted. Sounds like a ranch (or raised ranch)? With a basement with funct obs due to lack of basement access from interior of dwelling.

 

[Howard Klahr]

Built more like a duplex (zoning will allow but permits and inspections are as high as $25k depending on the city's findings + getting the property up to code so probably making it incurable)

$25,000 in cost of permit(s) alone ??? Doesn't sound right

The only way I can see appraising this is with functional obsolescence

Why? Are there not any other homes of similar vintage in the neighborhood that have basements with exterior only access?

 

[Deleted member 130081]

So is the main level not a complete functional home without the basement space? Sounds like you have a house, with a basement, exterior access to the basement with some finish in there. Not saying you are likely to find wonderful comps, but if the main level has everything a person would want, I don't see the obsolescence, just a less-than-perfect basement scenario. If you need the basement space to complete the basic functionality of the home, then you gots issues.

 

[Terrel L. Shields]

The only way I can see appraising this is with functional obsolescence and adjusting based on the cost of a spiral staircase or possibly enclosing the exterior stairwell with exterior walls and an door from the interior.

I am loath to impose building anything. There is no reason to. How finished is it? Clearly SFR w/ subpar access can be extracted, pair similar sales, and a cost to cure used as a proxy for adjustment would be a distant 3rd choice.

 

[reviewbe]

Agree with Terrel and the others. Either you are making this harder than it has to be, or we are all missing the point. I don't understand why you are even talking about a duplex.

 

[glenn walker]

Single family ranch with a UTILITY basement and be done .

 

[christo4]

$25,000 in cost of permit(s) alone ??? Doesn't sound right

$25,000 came from direct conversations with the city of Fort Collins. Not something I would just make up.

Why? Are there not any other homes of similar vintage in the neighborhood that have basements with exterior only access?

No, I could not find similar comps. Most other properties that are similar are permitted as a duplex are up to code and have a cooking device.