Bath remodel not finished - count as bath?

[residentialguy]

I am doing a refi - (FNMA 1004) and one of the baths is being remodeled. The ceramic tile is being grouted so the sink & toilet can be bolted down.(which are on site) Permits are pulled.

Technically...not a finished bath. However, The finishing is minimal with minimal cost to finish.

What would you do? "As-is" finished or "subject to"...or don't count it at all?

thanks!

 

[William Rightsell]

If the cost to finish is less than $500 or so...and it may very well be...then I would make it "AS IS"....if you feel like the cost to cure may be more than that, I would probably go with "SUBJECT TO"....

Either way, it counts. If you decide NOT to count it, you will be getting a call from the homeowner and/or lender.

On second thought tho...if the toilet and sink are not actually set in place and are not technically "usable", then I'd probably go with "SUBJECT TO"....if it were just the grout and some minor finish items I'd go AS IS, but since the bathroom is not really able to be used in its current state I would make it SUBJECT TO.

Just my .02 cents...

todd

 

[Mr Rex]

#3 is the most potentailly misleading.

 

[residentialguy]

If the cost to finish is less than $500 or so...and it may very well be...then I would make it "AS IS"....if you feel like the cost to cure may be more than that, I would probably go with "SUBJECT TO"....

Either way, it counts. If you decide NOT to count it, you will be getting a call from the homeowner and/or lender.

On second thought tho...if the toilet and sink are not actually set in place and are not technically "usable", then I'd probably go with "SUBJECT TO"....if it were just the grout and some minor finish items I'd go AS IS, but since the bathroom is not really able to be used in its current state I would make it SUBJECT TO.

Just my .02 cents...

todd

Yeah...that's the dilemma. They're right there...tighten a few bolts and screw on the hoses and voilà, it's a legal bath. Kinda silly.

I think I'll probably go with "subject to completion" because this lender will want the final cleared building permit, anyway.

 

[Mike Kennedy]

poster removed.

 

[CANative]

Most people who own homes are capable of doing minor home repairs and maintenance. Often, I use this rationale in deciding how to proceed when there are minor deficiencies or blemishes to the property. If it's something simple that most property owners could do themselves or hire a "handyman" at a small cost then I just report the condition and do not condition the appraisal on repairs.

 

[residentialguy]

No, it's an additional bath remodel. Just need to pull typical building permits with the city for remolding the bath. Maybe a sparky permit, too if they moved the light.

 

[CANative]

Grout the tile, apply a sealant, set a wax ring, bolt the toilet, connect the water to the angle stops. Easy stuff.

 

[Mike Kennedy]

poster removed.

 

[residentialguy]

Grout the tile, apply a sealant, set a wax ring, bolt the toilet, connect the water to the angle stops. Easy stuff.

I agree, but the problem is that whenever this particular lender sees anything new or remolded, they want a cleared permit or me to say that a permit was not necessary. I'm kinda stuck with Subj2 on this one.