No Central HVAC - Fannie Mae Policy

[Mark K]

I mean - I think that's how we calculate functional, right? Potato/potato. I just know that - in Texas - there's a SIGNIFICANT premium for HVAC over window units (around $10k for the ~ $250k price point in my market). I suspect it's about the same in Arkansas as well - gets pretty toasty in the summer there too...

The market effect in IN is the cost to cure, the cost to install central air, about $5-$7,000 in the average house that has an existing forced air heat.

 

[J Grant]

If I, as a typical borrower, were looking at two identical houses, one with working installed AC and one without, at similar prices, I would buy the one with working AC.

If the house with no AC were 5- 7k cheaper, I would choose the other house, because it is still a cash outlay and a PITA to install. That is why marketability can be impacted and not just price enters into it - depending on the market, of course, but a home without AC might take twice as long to sell, or have to offer a concession, etc.

 

[Terrel L. Shields]

it's about the same in Arkansas as well - gets pretty toasty in the summer there too...

It's the humidity not the heat at least that's what we try to delude ourselves with...But nothing like N. Louisiana in 100 degree weather. You shut off the car and go into a store and come out start the car and the windows fog... Or, I worked in College Station once where in September it was the high 90s until about 4 pm when it started raining. It was hot and muggy all night. Fungi grew in your beard. I got such a sinus infection my adenoids swelled and caused me to start gagging. I went to the ER in College Station, and of all things, I got a Maggie nurse that kept telling me dirty Lone Ranger jokes while I am trying to die. Finally got a shot to reduce swelling and a bottle of pills - sent me on my way.

 

[Terrel L. Shields]

f the house with no AC were 5- 7k cheaper, I would choose the other house, because it is still a cash outlay and a PITA to install.

Well, yes but with mini-splits you can cut that expense. The question is which is it? The functional obsolescence or the difference in cost?

 

[J Grant]

Well, yes but with mini-splits you can cut that expense. The question is which is it? The functional obsolescence or the difference in cost?

How can you appraise for all these years and not determine it, realize it is a combination of factors and the final test is, did it impact price?

It is the same fundamental wither AC/ a pole barn, a pool, extra 5 acres, etc.

 

[J Grant]

I tried to edit the above post and the site would not let me.

 

[Mark K]

If the house with no AC were 5- 7k cheaper, I would choose the other house, because it is still a cash outlay and a PITA to install.

Are you doing the install? One phone call and you have a brand new AC unit.

 

[sputnam]

I believe that the HVAC requirements vary with location. Some places where people live don't need AC and many dwellings don't have it. Some places where people live don't need central heating. For the places where people live that some HVAC is needed, I don't think there is any requirement about the type of HVAC... only that it's adequate to maintain livability year round.

 

[alebrewer]

I believe that the HVAC requirements vary with location. Some places where people live don't need AC and many dwellings don't have it. Some places where people live don't need central heating. For the places where people live that some HVAC is needed, I don't think there is any requirement about the type of HVAC... only that it's adequate to maintain livability year round.

Citation, please?

 

[Tumbuktu]

I talked to the lender about it. They told me to comment on the 'Marketability of the Heat Source' in the appraisal