Cost to cure adjustment or subject to?

[togatour]

Every assignment is different, and a client can decide to make the subject or make it as is.

Not my point. Only letting the OP know that if it is done as-is, and has a functional obsolescence problem with the floor plan ( can only access a full bath by entering the primary bedroom) that obsolescence has to be noted, and adjusted for in the Sales and Cost Approaches. And that the client does not decide

 

[Surf Cat]

Reasonable estimate to complete the job is 10k.

Dang that's low..... I wouldn't be doing my own bathroom if that was a full gut cost here....

 

[J Grant]

Not my point. Only letting the OP know that if it is done as-is, and has a functional obsolescence problem with the floor plan ( can only access a full bath by entering the primary bedroom) that obsolescence has to be noted, and adjusted for in the Sales and Cost Approaches. And that the client does not decide

Ok, I understand

I personally do not adjust for functional obs when it is "as is" and a bath is being remodeled or stripped down. The assumption is at some point, the bath will be finished, and any funct obs is temporary and baked into the adjustment for the bath stripped down. I don't; double adjust -

 

[togatour]

Ok, I understand

I personally do not adjust for functional obs when it is "as is" and a bath is being remodeled or stripped down. The assumption is at some point, the bath will be finished, and any funct obs is temporary and baked into the adjustment for the bath stripped down. I don't; double adjust -

Agree

 

[sputnam]

Agree. Ask your Client. If you decide to go as is... and they want as complete... you are just going to end up doing it over and vice versa.

 

[Tom D]

1.5 baths with a storage area, as is. They probable need the refi to finish the bath. How many baths do we really need in life. But, FHA does have a big stick to beat you with, ask lender.

 

[Vermonter]

I personally do not adjust for functional obs when it is "as is" and a bath is being remodeled or stripped down. The assumption is at some point, the bath will be finished, and any funct obs is temporary and baked into the adjustment for the bath stripped down.

Is it Zoe o'clock in FL? As-is means no bathroom as of the effective date. What happens in the future is irrelevant.
It's either as-is with FO (if applicable) or it's subject to completion without FO.

To the OP- A repair that requires a $10k cost to cure sounds more like an MPR and should be reported subject to repair. A cosmetic repair can be completed as-is. It's your client and your market so difficult for us to say.

Another option would be remove it from GLA and call it unfinished space.

 

[J Grant]

Is it Zoe o'clock in FL? As-is means no bathroom as of the effective date. What happens in the future is irrelevant.
It's either as-is with FO (if applicable) or it's subject to completion without FO.

To the OP- A repair that requires a $10k cost to cure sounds more like an MPR and should be reported subject to repair. A cosmetic repair can be completed as-is. It's your client and your market so difficult for us to say.

Another option would be remove it from GLA and call it unfinished space.

There are two bathrooms per the OP, and one of them is being remodeled, which leaves one functional bathroom as of the eff date.

Yes, as is, the unfinished bathroom is not functional as of the eff date.. I only pointed out that one assumes it will be made functional in the future, therefore no funct obs adjsutmed is needed. I mean we are supposed to have common sense and explain things. As in, most well-informed buyers purchasing a house with a stripped down second bath understand the plumbing still exists and that they will likely plan on restoring it to functional use.

Imo it is not an MPR; it is not broken and needs repair. It has been stripped out to be remodeled.
Removing it from GLA makes no sense - the GLA is still there. Call it one bathroom if you like since it is only since the house has one functional bath as of eff date; adjust and explain wrt it was a second bathroom and still has the plumbing in the walls .

 

[Vermonter]

only pointed out that one assumes it will be made functional in the future, therefore no funct obs adjsutmed is needed.

Why would you assume anything beyond the effective date?

Imo it is not an MPR; it is not broken and needs repair. It has been stripped out to be remodeled.
Removing it from GLA makes no sense - the GLA is still there.

It's been stripped to the studs per the original post. That does not qualify as GLA.

 

[Tom D]

Don't ask for repairs, let the underwriter do it. With a photo they surely will have an opinion. Around here most homes only have 1 bath, this house now has 1.1 baths which is more than sufficient for any emergency visit, if full bath is in use. The bathroom is actually totally gone. If you don't want another bathroom then it's just cosmetic stuff. But either way, better to get the exact answer from the lender to avoid the stip to add it, or don't add it. I would have asked the owners if they had the money to finish it, which might determine my approach.

Contractors are the worst owners, i have seen them take months to finish stuff in their own homes.

GLA, not GLA, more ansi nonsense. Call it a rustic closet.