Details. Conventional Purchase
1900 sf ranch, 4 bedroom, 1 bathroom, separate shower(only) in a private room in the laundry, built in the mid 70's, small rural town of less than 5k.
The room is already there and in my eyes, a non contractor, adding the bathroom seems plausible without moving or adding any walls.
The subject was part of a farm that has been sold and newer smaller homes are being built all with 3bed 2 bath.
Most of the sales in the past year in the town have 2 baths. A few 1 1/2 baths and even fewer 1 baths, but I do have a couple from the area and the next town over.
IF it had 2 baths, it would appraiser for more and I have spoken with a builder and have "estimates" on what adding the bathroom would cost. I have been reading through articles, forums, and the appraisal of real estate and I still am not 100% positive on how to proceed.
Cost to cure estimate from builder - 10k to 15k
Added value for 2nd bathroom - 11k
These margins are so small that it could pass from curable to incurable per definitions.
I saw past forum posts speaking on looking at the year built and what was expected then, and yes my 1 bathroom comparables are older but so are some of the 2 bathroom comparables. Is this functional obsolescence, or am I being biased because I would insist on 2 bathrooms?
The way I stand right now. This is curable functional obsolescence, this will be placed in the cost approach, my 1 bathroom comps will most likely be weighted the most, and I will lean toward the lower end of the range of comparables over all.
2 cents and opinions are welcome.
1900 sf ranch, 4 bedroom, 1 bathroom, separate shower(only) in a private room in the laundry, built in the mid 70's, small rural town of less than 5k.
The room is already there and in my eyes, a non contractor, adding the bathroom seems plausible without moving or adding any walls.
The subject was part of a farm that has been sold and newer smaller homes are being built all with 3bed 2 bath.
Most of the sales in the past year in the town have 2 baths. A few 1 1/2 baths and even fewer 1 baths, but I do have a couple from the area and the next town over.
IF it had 2 baths, it would appraiser for more and I have spoken with a builder and have "estimates" on what adding the bathroom would cost. I have been reading through articles, forums, and the appraisal of real estate and I still am not 100% positive on how to proceed.
Cost to cure estimate from builder - 10k to 15k
Added value for 2nd bathroom - 11k
These margins are so small that it could pass from curable to incurable per definitions.
I saw past forum posts speaking on looking at the year built and what was expected then, and yes my 1 bathroom comparables are older but so are some of the 2 bathroom comparables. Is this functional obsolescence, or am I being biased because I would insist on 2 bathrooms?
The way I stand right now. This is curable functional obsolescence, this will be placed in the cost approach, my 1 bathroom comps will most likely be weighted the most, and I will lean toward the lower end of the range of comparables over all.
2 cents and opinions are welcome.
