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FHA "Ostensible" Functional Obsolesence

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ZZGAMAZZ

Elite Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
Does functional obsolesence exist in regard to a 3 bedroom SFR with garage access via one of the bedrooms--which appears to be atypical for the local market--if 'market reaction' to 2 as well as 3 bedroom units is similar/identical per matched pairs analysis when GLA is controlled?

(Note: "Market reaction" is based upon the only two recent 2-bedroom sales and that's not much of a sample size.)

If one encounters a building feature that ostensibly reflects FO but market reaction indicates otherwise, should the interior walls be included in the sketch?

Based upon the limited info that I'm providing, should an appraiser describe "what ostensibly would be functional obsolesence but that does not exist in terms of market reaction to the feature"...
 
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Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
ZZ,

If you are saying that there is no measurable difference between market reaction (sales price) to two beds versus three beds once one has controlled for GLA (and quality and condition) then I'd say the floor plan is atypical but not functional obsolescence.

Buyers who want a three bedroom house might be put off by it but buyers who want a two bedroom house may love it.

In order to demonstrate this you would need to include both three and two beds in your grid.
 

Jeffery Hall

Junior Member
Joined
Oct 21, 2005
Professional Status
Licensed Appraiser
State
California
What says the Gurus

Does functional obsolesence exist in regard to a

3 bedroom SFR with garage access via one of the bedrooms

--which appears to be atypical for the local market--if 'market reaction' to 2 as well as 3 bedroom units is similar/identical per matched pairs analysis when GLA is controlled?

(Note: "Market reaction" is based upon the only two recent 2-bedroom sales and that's not much of a sample size.)

If one encounters a building feature that ostensibly reflects FO but market reaction indicates otherwise, should the interior walls be included in the sketch?

Based upon the limited info that I'm providing, should an appraiser describe "what ostensibly would be functional obsolesence but that does not exist in terms of market reaction to the feature"...

Sorry to say this, but after consulting with a building oficial friend he states that sleeping rooms must NOT be directly accessable to a garage. (At least here in California.) because of carbon monoxide poison issues. Health and Safety. That means your bedroom is not a bedroom, but some kind of bonus room. Maybe a study, office, den, whatever.

So, the premise of the original post is moot. Go with a two BR report. :flowers:
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
Call the subject a two bedroom but continue to use bot the two and three bedrooms as comps.
 

Metamorphic

Senior Member
Joined
Mar 15, 2008
Professional Status
Certified Residential Appraiser
State
California
Sorry to say this, but after consulting with a building oficial friend he states that sleeping rooms must NOT be directly accessable to a garage. (At least here in California.) because of carbon monoxide poison issues. Health and Safety. That means your bedroom is not a bedroom, but some kind of bonus room. Maybe a study, office, den, whatever.

So, the premise of the original post is moot. Go with a two BR report. :flowers:

That's exactly what I remembered about bedrooms and garages. Thanks for confirming my memory-hunch.
 

ZZGAMAZZ

Elite Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
Well slap my permit-checking booty and call me "having learned something new again today."
 
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