Dubious bathroom situation

[PropertyEconomics]

How do the property records describe the subject?

Property records are not public information in New Mexico, we are a nondisclosure state as to sales prices and records held by the county with respect to property particulars.

 

[Webbed Feet]

I would appraise “As Is” with curable functional adjustments, cost to finish the bathroom and the cost to remove the trailer and close the doorway opening. Does the current condition of the home create market resistance? Would a typical buyer finish the bathroom and remove the trailer?

Mr. Spellman,

You're asking those kind of questions and using the word "curable" in the same post? Somehow I don't think you are sticking with the definitions of curable and incurable as they apply to depreciation within appraisal theory.

Webbed.

 

[Webbed Feet]

<.....snip......>
I have prepared the report subject to a functioning bathroom. I can hardly wait for the whiny LO call when this one hits the system.

Lobo,

I would not have done that. I am with K.D. on this one and partially P.E. This clearly called for renegociation of a corrected SOW. I would have started with a phone call to the client strongly recommending I send them an "Inspection Findings" letter with all fifty-seven of my subject photos attached, and let them know my fee for services so far with the expectation they are going to cancel the assignment.

What is going to happen is the borrower doesn't have the money to finish the work, a "Subject To" report requires the work finished before anyone can give them money for the loan type applied for. It will turn out your client has no other loan product for this situation for them. The house is not marketable with no bathroom, the mobile home is not lendable. Nor is the two of them being attached like that lendable as it probably disqualifies the fire insurance on the house. Did you check how the electricity is being routed through the two? Small stuff, like the stick built structure is not attached to a septic system? ... Silly me, I bet this goes way beyond physically adding a toilet.

Webbed.

 

[Kevin A. Spellman]

The term curable in the appraisal world adds value. Curable is not just limited to the theory of depreciation for the valuation industry. A toilet will add value to this situation and it is a curable functional inadequacy.

 

[Queen City Gurl]

If the trailer is pre 1976, is it a single wide? That would be personal property in many states.

I agree, just because they pulled a trailer up close to use the bathroom, does not make it part of the subject. Your subject does not have a bathroom ! I think most lenders would appreciate your letting them know, and they decide what product they may have for the borrower, and determine from there whether they would need subject to or as is.

Not having a bathroom is no small glitch, if you want to keep your client, call them !