How to handle an unfinished bathroom

[Tim Schneider]

How do you deal with a home that has 2 baths above grade, but one of them is not completed (no shower stall, subfloor only, toilet not set). Lender is requesting an "as-is" value with the intention of the loan going secondary market.

I am trying to decide between a condition adjustment for the estimated costs to finish the bathroom, or looking at it as a 1 bathroom home.

 

[Mr Rex]

I assume you don't have any comps with an unfinished bath?:new_smile-l: If it were me, and the unfinished bath posed no safety or sanitary issues, the electrical boxes and wires are covered, the waste lines are capped so that no dangerous gases can escape etc. I would estimate a cost to cure and mention it, but probably apply a factor of 5X CTC or something similar to account for the market reaction to the unfinished bath. I'm sure the LO/MB will have a hissy fit, but the SCA grid is intended to reflect market participants reactions to condition, not CTC. MHO.

 

[Kevin A. Spellman]

The unfinished bath is the easy answer. The question you may want ask yourself: is the plumbing secured to prevent sewer gases penetrating the living area and are the water lines secured.

Was the bath removed and being renovated or was the bath never completed from new construction? What is the market expectation of your subject? Would the market accept your subject “as is” and then react with a budget to complete the bath?

If the indicator of value has a one bath you may want to review the value of the rough-ins. If there is a second full bath with an indicator of value then it is the cost to finish your subject’s bath. I would place the adjustment in the functional grid for both the cost approach and in the market approach.

 

[stefan olafson]

Whatever you decide, make sure you include a detailed description of the present condition of the bath. Because it's not done maybe you can compare the property to similar homes with only one bath or compare it to both one and two bath homes and find the difference in value without the bath. If it's not complete it really isn't worth more than a large closet in most markets I would think?

 

[Richard Carlsen]

How do you deal with a home that has 2 baths above grade, but one of them is not completed (no shower stall, sub-floor only, toilet not set). Lender is requesting an "as-is" value with the intention of the loan going secondary market.

I am trying to decide between a condition adjustment for the estimated costs to finish the bathroom, or looking at it as a 1 bathroom home.

If you can flush the toilet but the shower stall is not installed, it has a toilet and not a bathing facility and is therefore a 1/2 bath. The missing seat is minuscule in relation to the overall value. $15 will fix that. With the shower stall not installed, the house has to be considered a 1.5 bath house. Make a normal bath adjustment (refer to your "Appraisers Standard Sales Grid Dollar Adjustment List" ). Make an adjustment for the cost to cure for the flooring and unfinished work necessary to complete all trim work, etc. if you must or just consider it in your final reconciliation by lowering your value conclusion.

It is what it is. In an "as is" appraisal; Ya calls it like ya sees it and dat's whats day git.

 

[Tim Schneider]

The whole bath is unfinished - no toilet. I think your logic still applies though.

 

[Walter Kirk]

If the rough plumbing is installed as well as the finished walls, electrical and door, it's cost to cure.