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bathroom on outside not finished

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philip

Thread Starter
Sophomore Member
Joined
Jan 29, 2002
Professional Status
Certified General Appraiser
State
California
owner is adding a bathroom I went to city to verify and it is permitted. The bathroom is in th backyard attached to the rear stucco of the home. It is not accessed thru the home. Im not giving credit in GLA. The work is not complete and needs stucco and all fixture hook ups. Rough plumbing is done as is rough electrical. I Have read HUD guidelines and am not sure. My question is.. Should I make "as is" and deduct for cost to finish and condition a reinspection when complete. Or any suggestions the best way to do it.
THanks
 
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Judy Whitehead (Florida)

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Hmmmmm - hopefully they have one inside! I think I would treat this similar to the way I treat extra baths in the garage or something - not connected to the L.A., but given minimal value only if it is a complete bath (i.e. pool bath, garage bath, etc.) But in this case, since it cannot be used for anything I would simply state what you have stated in this post and give it no value. Obviously it is not usable as a bathroom or anything else.

Put on your Mr. Buyer's cap - would you pay more for this house because that is attached to the outside? Actually as it stands right now it could even be a detriment to the subject.
 

philip

Thread Starter
Sophomore Member
Joined
Jan 29, 2002
Professional Status
Certified General Appraiser
State
California
Thanks but again my question

Thanks not worried about value as im not giving it value. My question was
Should I make "as is" and deduct for cost to finish and condition a reinspection when complete. Or subject to completion. Dont want it kicked back by HUD. Or any suggestions the best way to do it.
 

Judy Whitehead (Florida)

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Florida
When I attended a HUD seminar, I was told that the primary concern is health and safety and of course marketability. If the house functions as a residence should, if someone's health and safety are not an issue, then I would simply describe it and let the underwriter determine if they want it finished or closed up, taken off, etc.

The following is from the new appendix of 4150.2:
The appraiser is to note those repairs necessary to make the property
comply with FHA's Minimum Property Requirements (MPR) or Minimum
Property Standards (MPS) together with the estimated cost to cure. The
lender will determine which repairs for existing properties must be made for
the property to be eligible for FHA-insured financing.

Cosmetic repairs are not required; however, they are to be considered in the
overall condition rating and valuation of the property. Examples of cosmetic
repairs would include surface treatments, beautification or adornment not
required for the preservation of the property. For example, generally, worn
floor finishes or carpeting, holes in window screens, or a small crack in a
windowpane are examples of deferred maintenance that do not rise to the
level of a required repair but must be reported by the appraiser.

The physical condition of existing building improvements is examined at the
time of the appraisal to determine whether repairs, alterations or inspections
are necessary - essential to eliminate conditions threatening the continued
physical security of the property.

Required repairs will be limited to necessary requirements to:
* protect the health and safety of the occupants (Safety)
* protect the security of the property (Security)
* correct physical deficiencies or conditions affecting structural integrity
(Soundness)

A property with defective conditions is unacceptable until the defects or
conditions have been remedied and the probability of further damage
eliminated. Defective conditions include:
* defective construction
* other readily observable conditions that impair the safety, sanitation or
structural soundness of the dwelling

Typical conditions that would require further inspection or testing by qualified
individuals or entities:
* infestation - evidence of termites
* inoperative or inadequate plumbing, heating or electrical systems
* structural failure in framing members
* leaking or worn-out roofs
* cracked masonry or foundation damage
* drainage problems

Appraisers are reminded not to recommend inspections only as a means of
limiting liability. The reason or indication of a particular problem must be
given when requiring an inspection of any mechanical system, structural
system, etc.


I downloaded the appendix from HUD and keep it on my desktop as an icon so that I can refer to it. You can find it on the HUD website under Appendix D.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
If it needs stucco it is "Subject to". If the plumbing rough ins are capped so as not to pose a sanitary problem, probably OK. How is the rough electrical handled so that it is not a potential safety hazard?
 

philip

Thread Starter
Sophomore Member
Joined
Jan 29, 2002
Professional Status
Certified General Appraiser
State
California
thanks

Thanks to all for the help. I also have the HUD info downloaded. Sometimes its always best to ask. Thanks Mr Rex. The rough ins are capped.
 
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