Functional Obsolescence or Not?

[PropertyEconomics]

I once had a listing wiith such a situation.

Days on Market, became months and then over a year.

Spent most of the time showing discussing what to do about the bathroom situation,

It is a functional obsolescence situation. It sure will not be found in any MLS printout or other agent provided data, but it is there.

You certainly cannot ignore it.

Maybe describe the "cute" half bath under the stairs? No!!

Wayne Tomlinson

I dont see how you can unequivocally say it IS a functional obsolescence without market data to support that conclusion.

 

[JoeB]

I have called it Functional Obsolescence because it is not common and typical.
It can not be ignored . Thank you once again for all your opinions!

 

[incognito]

I see plenty of 1.5 bath homes which market well. I do not believe your question is "is 1.5 bathrooms an example of functional obsolescence"
but is "is, in a 1.5 bathroom house, would the presence of the full bathroom in the bedroom be less functional than the half bathroom being located in the bedroom."

I have seen it both ways, and frankly can see pluses and minuses for both. ASSUMING that 1.5 bathrooms is not the functional issue, I do not believe that where each bath is located is a major issue, in my observation of my market.

 

[Mary Tiernan]

I think that sometimes appraisers have to use their judgement, not just market data. I would definitely interview a couple realtors and get some quotes from them, but comon - this is functional obsolescence and to ignore it is to provide less than adequate analysis.

 

[ZZGAMAZZ]

Please allow me to take this in a slightly different direction and I'll understand if I get blasted for focusing too much on words rather than issues.

A recent thread on the AF addressed the requirement/wisdom/need actually to call a hypothetical condition a "hypothetical condition" with lots of compelling testimony for both sides of the issue.

My question: Is it necessary to describe a functionally inadequate configuration as being a "functional obsolesence," or is it appropriate merely to describe the issue and to provide the interior sketch diagram if the SOW is a FHA deal?

IMO it should be described for what it is but like most common practives in our industry I'm sure there is an alternative view...

 

[Robert E Keller]

PE said it well and to add to PE on the market, that is the only place to arrive at a adjustment for the FO. So once the market tells you there is FO, then and only then you can ask it for a amount to adjust for.

a good source might be the local realtors that have had listing with similar situations, they could give you some insight on additional marketing time and buyers reactions to the FO.

Zookeeper, just watching the bears.

 

[Roger Kinnard]

IMHO, the answer is maybe, maybe even probably.

Most 1 1/2 bath homes in my area have the 1/2 bath in the master and the full bath accessible off the hallway.

Just describing the issue is not the correct answer because you are not taking into consideration market reaction, which would possibly affect market value. You have to determine if there is FO or not and make an adjustment or not.

Ideally, you would find some market data to back up your determination. If there is absolutely none available, then you have to render a considered opinion. Remember, it's your opinion of value that the client has asked for.

Just as a silly example, you may be appraising the only newly built custom home within a 1000 miles that has an outhouse for it's only bathroom, and there are no paired sales to prove that it has FO, doesn't mean that having an outhouse won't affect the value.

Good luck

 

[Richard Carlsen]

1 Bedroom: not functional.
2 or more bedrooms: functional.

2 bedrooms assumes more than one person sleeping over. While the 1/2 bath provide potty services, bathing facilities must be accessed through the private bedroom.

Functional for floor plan.

 

[incognito]

Richard, you forgot to say, "In my market or area of practice". I can name several subdivisions IN MY AREA OF PRACTICE where every home is a 3 bedroom 1.5 bath. Pretty hard to suggest that they all suffer from functional, when they market as successfully, albeit at different price levels, as 3-2's in other neighborhoods...

I grew up in a home in Orlando in the early '60s which was a 3-1, 1100 sq.ft. with a carport. 2 parents, 4 kids and a dog made out well enough. And we were middle class, in a good school district, and my dad was an aeronautical engineer with a very good job, and this was a new, nice house, relatively speaking. No functional in my opinion...

Now I live in 4100 sq. ft., 6 bedrooms and 5 bathrooms, and with 6 of us and what seems like a never ending number of kids flowing through, 5 bathrooms often does not seem to be enough. Functional in my opinion...

It is all relative.

 

[Richard Carlsen]

Richard, you forgot to say, "In my market or area of practice". I can name several subdivisions IN MY AREA OF PRACTICE where every home is a 3 bedroom 1.5 bath. Pretty hard to suggest that they all suffer from functional, when they market as successfully, albeit at different price levels, as 3-2's in other neighborhoods...

The comment was specific to the full bath being accessed through a bedroom. If it is a 1 bedroom house, I don't see that as a problem since there is a half bath for causal use. In a house with 2 or more bedrooms, accessing the full bath through one of the bedrooms is obviously functional. I seriously doubt that housing in Orlando was set up whereby you had to go through a bedroom to get to a full bath. Am I wrong?