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Closets In Units

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Tom4value

Senior Member
Joined
Dec 4, 2016
Professional Status
Certified Residential Appraiser
State
Massachusetts
I have this friend ( I know it sounds like a psychology story but true) who is a loan officer and the FHA appraiser said the two family has units with no closets in the bedrooms. He conditioned for closets being installed in all units. This is a 100 year old dwelling where closets were never built in. I.e.., it is typical of the market.
As an FHA. Approved appraiser, I know of no stipulation in the handbook where it states that the bedrooms need closets, only that they are market accepted. Can someone either prove me wrong or prove me right?
 

GA Benny

Junior Member
Joined
Oct 19, 2007
Professional Status
Certified Residential Appraiser
State
Georgia
Closets are not required by FHA, but may impact value and marketability. Bedrooms without closets are functionally obsolete but easily curable by building some closets. The costs are fairly minimal, probably around $500-1000 each but depending on the market may impact the value several thousands.
 
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Deleted member 128537

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That's a tough one. I don't see it as an FHA requirement. It is a marketability issue due to functional obsolescence. I actually did an appraisal on a newly built home and not one of the bedrooms had a closet. My market is mostly recreational properties so many bedrooms don't have closets in them. It's just not a big deal. I would say the appraiser would have to find similar comparables or make a functional obsolescence adjustment, but I don't see how making it "subject to" is the correct approach. After all the house has been lived in longer than the appraiser has probably been alive!
 

Amy Perkins

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Joined
Jul 20, 2003
Professional Status
Certified Residential Appraiser
State
Tennessee
I have this friend ( I know it sounds like a psychology story but true) who is a loan officer and the FHA appraiser said the two family has units with no closets in the bedrooms. He conditioned for closets being installed in all units. This is a 100 year old dwelling where closets were never built in. I.e.., it is typical of the market.
As an FHA. Approved appraiser, I know of no stipulation in the handbook where it states that the bedrooms need closets, only that they are market accepted. Can someone either prove me wrong or prove me right?

A hundred years ago people had wardrobes or armories, not closets. These are grandfathered bedrooms, who needs ugly closets anyway! Maybe I want to move my wardrobe to the other side of the room. Closet appraisers, give me a break! The closet thing is old school. Besides many rooms have closets, it does not mean they are all bedrooms. For land that has septic systems, bedrooms are an issue. Say you have a two bedroom perc, you have a library, sitting room, recreation room... yet they all have closets. A house on septic that has beds in the rooms are bedrooms, even if they don't have closets. If zoning allows for a three bedroom perc and there are no closets in the bedrooms; there are still three bedrooms.
 

Amy Perkins

Senior Member
Joined
Jul 20, 2003
Professional Status
Certified Residential Appraiser
State
Tennessee
Vacant and it would default to the number of rooms able to be permitted, per environmental health. A closet does not make a bedroom for a 100 year old home.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
Closets are not required by FHA -Fannie-Mae-Nobody it's an old wives tall that has been propagated for at least the 30 years I have been around BUT after WW-2 when tract homes were being built closets became the standard. Prior to that people used armoires which is a piece of furniture designed to hang your clothes in.The County of Los Angeles has thousands of older homes without closets. When I started back in early eighties FHA appraisers told us that the home had to have built in closets and many are still pushing the issue except there is and never has been any directive from HUD on this.

I was doing a review last year on a 2 bedroom-800.00 Sq.Ft. Bungalow built in 1915. The appraiser was sending the Underwriter and me insane because she insisted the house had no bedrooms ** What are those two rooms in your photos with beds and dressers in them ? Response ** rooms but not bedrooms and people today can't live without bedrooms and that's the way my mentor trained me *** GEEZ- I think that was my first heart attack.
 

Tom4value

Senior Member
Joined
Dec 4, 2016
Professional Status
Certified Residential Appraiser
State
Massachusetts
That's a tough one. I don't see it as an FHA requirement. It is a marketability issue due to functional obsolescence. I actually did an appraisal on a newly built home and not one of the bedrooms had a closet. My market is mostly recreational properties so many bedrooms don't have closets in them. It's just not a big deal. I would say the appraiser would have to find similar comparables or make a functional obsolescence adjustment, but I don't see how making it "subject to" is the correct approach. After all the house has been lived in longer than the appraiser has probably been alive!
My point exactly!
If the appraiser did his homework, he would find that it is not a functional obsolescence issue because this situation is common in older dwellings. Also, all the units are occupied so at least six sets of tenants have no issue with the lack of a closet!
 

Evincere

Elite Member
Joined
Dec 30, 2002
Professional Status
Certified Residential Appraiser
State
Florida
A hundred years ago people had wardrobes or armories, not closets. These are grandfathered bedrooms, who needs ugly closets anyway! Maybe I want to move my wardrobe to the other side of the room. Closet appraisers, give me a break! The closet thing is old school. .

I agree. And one would also have to consider how many times that 100 yr old house has been sold since being built. Did not having closets affect marketability (previous sales history of subject and TRUE comparables due to functional obsolescence) especially if the market is comprised of vintage homes?
 
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