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3 bedroom home is now a 2 bedroom home.....how big a hit?

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
A new 2 bedroom house is a Unicorn. In my part of the world the difference between a 2 bedroom and a 3 bedroom is significant....verified by the lack of 2 bedroom new construction and in this case a 2 car garage, a 3/4 acre lot, full brick, screen porch etc. I guess the only folks that can address would be brokers/appraisers in my market. If there was a demand, they would be being built....they are not.

Thanks!
This is the first post that shows applicable reasoning to assignment - but how would you make this HC what subject configuration would have been 2 years ago if built as a 2 bedroom? What it be a 2 bedroom with a flex space den with same SF ? You are in essence re inventing what the house "would have been"

Agree most new tract style homes for families rarely built these days as a 2 bedroom but if it were, would it still have appeal simply as a new home with generous sf and a flex room plus the 2 bedrms?.

If the subject was mis represented as a 3 bedroom due to septic tank issues, would not other similar 3 bed homes in the subject newer community have same issue? How have THEIR resales been affected? There should have been some resales by now since 2016 of similar 3 bedroom homes in the subject community, which if what owner says is true, would also have septic tank permit issues. Talk to RE agents who sell in the subject community, they would have insight into this issue, if there is one
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
New 1,750 sf brick house 6/3/2.1, two car garage. Sold for $238,000 Jan 2016. Fast forward.

The septic tank started to leak and the County Health dept. says it only perks for a 2 bedroom home. They (among others) screwed up. A permit was issued back in 2015 for a THREE bedroom house. OK, so now it can only be marketed or sold as a 2 bedroom home.
It is not financially feaseable to do anything to the current system, newer systems etc. Simply not possible.

In the entire county there has not been a single 2 bedroom, single family home built in over 15 years.

How much would the home have been worth if it had been marketed and sold as a 2 bedroom home rather than a 3? The opinion of my peers may be the final answer. Any ideas, formulas etc for this problem?
Its called a builder warranty and how did the county issue a permit fora septic tank two small to handle a 3 bedroom home ? Bathrooms count is where septic issues come up- Anyway owner need to get a good attorney he will win . NOW as far as the appraisal issue-If there are no comps you are just making up a number and cannot support it. Buyer action in some markets need bedrooms for families so you have Functional Obsolescence which is kinda crazy on a almost new home and now how do you extract that ? Talk to very Realtor you know and ask them if they could sell a 2 bedroom. Anyway my brain keeps going back to cost to cure LARGER SEPTIC TANK and How is it possible a newer system cannot be installed a tank for 3 or 4 bedrooms is not that much larger than one for a 2 bedroom ?
 

USPAP Compliant

Thread Starter
Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Its called a builder warranty and how did the county issue a permit fora septic tank two small to handle a 3 bedroom home ? Bathrooms count is where septic issues come up- Anyway owner need to get a good attorney he will win . NOW as far as the appraisal issue-If there are no comps you are just making up a number and cannot support it. Buyer action in some markets need bedrooms for families so you have Functional Obsolescence which is kinda crazy on a almost new home and now how do you extract that ? Talk to very Realtor you know and ask them if they could sell a 2 bedroom. Anyway my brain keeps going back to cost to cure LARGER SEPTIC TANK and How is it possible a newer system cannot be installed a tank for 3 or 4 bedrooms is not that much larger than one for a 2 bedroom ?
The tank size is not it. It is the percolation factor of the site. This has been researched by experts. No option here to cure.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
If this goes to court the builder will show what other 3 bedroom similar size houses in subject community have sold AS RESALES for in the past year or two, and if only the subject has a supposed problem then it what is it-

LOOK AT WHAT OTHER SIMILAR SIZE 3 BEDROOM HOMES IN SUBJECT COMMUNITY ARE LISTED /HAVE SOLD FOR AND DO THEY HAVE THE SAME septic percolation supposed PROBLEM? Talk to listing agent on the homes sold/listed in subject community, if it is a builder fail wouldn't' all similar size 3 bedroom homes have been affected by the septic issue?

If subject is the one and only house in the community affected, then why?.
 

Tom D

Senior Member
Gold Supporting Member
Joined
May 22, 2015
Professional Status
Certified Residential Appraiser
State
Pennsylvania
i'm with glenn & grant, how did the buyer get a completion from the county for 3 bedrooms. bet you the appraiser didn't know this either. would be nice to see that appraisal. if the county gave them a go move in u&o then how do you sue the builder, or 1st appraiser. my feeling is you will be the next appraiser they sue if they don't like your value. the state probable won't like your work file, and how you proved it. asking questions here is good of you, but having to ask on a case like this. well, i wouldn't do it.
 

USPAP Compliant

Thread Starter
Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
This is the first post that shows applicable reasoning to assignment - but how would you make this HC what subject configuration would have been 2 years ago if built as a 2 bedroom? What it be a 2 bedroom with a flex space den with same SF ? You are in essence re inventing what the house "would have been"

Agree most new tract style homes for families rarely built these days as a 2 bedroom but if it were, would it still have appeal simply as a new home with generous sf and a flex room plus the 2 bedrms?.

If the subject was mis represented as a 3 bedroom due to septic tank issues, would not other similar 3 bed homes in the subject newer community have same issue? How have THEIR resales been affected? There should have been some resales by now since 2016 of similar 3 bedroom homes in the subject community, which if what owner says is true, would also have septic tank permit issues. Talk to RE agents who sell in the subject community, they would have insight into this issue, if there is one
You always want to change the question or add to it. The house is not in a large sub-division. It is on a single street, out in the county, all custom built for owner homes, only 6 on the street...none sold. The SUBJECT lot has the problem not the entire street.
 

Mark K

Senior Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
Bathrooms count is where septic issues come up-.

Anyway my brain keeps going back to cost to cure LARGER SEPTIC TANK and How is it possible a newer system cannot be installed a tank for 3 or 4 bedrooms is not that much larger than one for a 2 bedroom ?
In this state, the septic size is determined by # of bedrooms; don't know about others.

Also, due to the slow-perking clay soils in this area, the septic finger systems are big. 4 BR septic systems are mostly 'dosing' systems that require two tanks and a pump system...expensive.

When I lived in Michigan (big sand bar) the septic system for my 3 BR house was the size of a 2 car garage. In this state, most finger systems/fields are about 5-6,000 sq.ft. Minimum lot size for house w/septic is 1.5 acres.
 

USPAP Compliant

Thread Starter
Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
i'm with glenn & grant, how did the buyer get a completion from the county for 3 bedrooms. bet you the appraiser didn't know this either. would be nice to see that appraisal. if the county gave them a go move in u&o then how do you sue the builder, or 1st appraiser. my feeling is you will be the next appraiser they sue if they don't like your value. the state probable won't like your work file, and how you proved it. asking questions here is good of you, but having to ask on a case like this. well, i wouldn't do it.


A 3 bedroom permit was issued, there was no problem until the people moved in. The county then re-issued the permit. It is over and done now., the septic tank folks are not at fault.

The question remains as to how to demonstrate the loss of value to the property. Thanks everyone, but all these what if's do not go the issue of how to calculate value.
 

USPAP Compliant

Thread Starter
Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
In this state, the septic size is determined by # of bedrooms; don't know about others.

Also, due to the slow-perking clay soils in this area, the septic finger systems are big. 4 BR septic systems are mostly 'dosing' systems that require two tanks and a pump system...expensive.

When I lived in Michigan (big sand bar) the septic system for my 3 BR house was the size of a 2 car garage. In this state, most finger systems/fields are about 5-6,000 sq.ft. Minimum lot size for house w/septic is 1.5 acres.
Here it is the bedroom count which is an indicator of how many people might be using the bathrooms.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Bathrooms count is where septic issues come up
In my state, it is bedrooms that count. You can have 13 bathrooms and still have a septic system that is based upon the number of bedrooms. It is stupid but it is the way both AR and OK size septic systems.
 
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