No Closet Doors.

[Debra]

Hello!

Well, I did an appraisal on a property and the house is only 8 years old. It's a rural cedar sided home. It was very well built and in good condition. The only thing was that there were no closet doors. Most of the houses in this area have closet doors so...I took off for the missing closet doors on the appraisal report. The client just called and said that the kind of loan that the home owner is getting would not allow any stipulations and would I please take out the comments and the condition adjustment for closet doors. They say that this is a personal preference. What should I do???

 

[Marty Skolnik]

From what you have described, the missing closet doors appear to be an item of functional obsolescence with a cost-to-cure of the amount of buying the doors and installing them. In your professional judgment you have made the observation. This, to me, is no different than you saying that the property has some physical deterioration like peeling paint or worn carpets. You aren't necessarily saying that you are making them put doors on the closets, right? You aren't saying that they have to put doors on their closets, right? There's no building code that requires doors on closests, is there? They can have all the doors off the closets they want. They can take off the front door if they want. They can live with all the windows open and the carpets rolled up and living on plywood underlayment.

But, in your professional appraisal judgment, the lack of closet doors is an item of accrued depreciation (functional obsolescense, curable). The cost-to-cure is the cost of buying doors and installing them. You aren't making them do this -- you have observed that there is a loss-in-value due to this unusual condition. Period.


Marty Skolnik
Baltimore, MD

 

[Walter Kirk]

Let me see if I understand this. Since the lender won't allow any comments on obsolescense the appraiser must ignore it.

It's a shame that the house won't qualify for a loan from this lender but it's not your responsibility. Appraise what you see and move on. If this lender is the only source of mortgage money for these owners then they will have to install closet doors.

By the way, I removed the closet doors in my own bedroom since they got in my way every day. They are stored in the attic and will be replaced if I decide to sell my house!

 

[Dilar]

Closet doors??

You must like to have U/W come down on you.

 

[Farm Gal]

Did you make a STIPULATION, or did you report an observed condition and make market adjustment?

Clarify your report with your cleint! But don't apologize or quail under pressure to remove a condition comment you believe effects marketability.

Marty- I sincerely hope you are tongue in cheek on that comment... REAL appraisers make note of and consider in value any conditions which result in positive or adverse market reaction.

Of course those who don't stay busier than those who refuse to wear blinders <_<

 

[Neil (Texas)]

It may be a personal preference... but around here it is not a market preference.

 

[hal380]

Hello Debra;

I like and respect Lee Ann, and I don't like to disagree with her on many issues, cus she is mostly right. Having said that, I have a difficulty in knowing where to draw the line on minor items.

Minor items = a crack in the corner of a window pane, a tear in a screen, a wear pattern in the kitchen floor, a chip in the Formica counter top, etc etc.

Closet doors? Humm 6 or 7 doors? @ $50 - $60 each for material, maybe $100 each installed by local handyman. What would the market reaction be? "Install the damned closet doors before closing"!!!. As far as a value issue goes, in my market typical values are in the $225,000 area, and $700 is not a real issue. $700 divided by $225,000 = .0031% can we say 3/10's of 1 percent?

I understand that missing closet doors sounds kinda funky, but I feel that many warts are covered by the effective age reported in my reports. I typically report actual age of 55 yrs with effective age of 30 yrs, which represents normal wear and tear and is not adverse to value.

Also consider that your comparables will be, or should be the approximate age of the subject. As such they will have their own issues, maybe not missing closet doors, but some other things that relate to normal wear and tear, or funky tastes like strange wall paper in the living room.

Regards

Hal

 

[Randy Beigh]

would not allow any stipulations

Debra

What does that mean? Did you stipulate that the house had to have closet doors? In other words, did you make the appraisal subject to? Or did you just mention there was no doors? Or did you subtract a figure in the grid for lack of closet doors? Or did you call the house less than average condition?

So many questions, so little time.

I think disclosure of the missing doors is important. I also think I wouldn't have made "much ado about nothing".

 

[DB]

Mr. Hal .... I am sorry ... and I intend no disrepect AT ALL .... but if the counter tops are chipped or there is a crack in the window or the wall or a wear pattern in the floor ... it goes in the report .... I have always figured that my client is paying me to be their eyes and ears in the field and I intend to tell it like it is, even if they don't want to hear it .... my responsibility is to the lender and my own conscience.... not the UW or the MB or the LO .... if they don't like it ... tough .... I calls'em likes I sees'em ...

 

[hal380]

Hi Doug;

No problem here, I guess its a matter of style. I think we both are consciencous and dilligent. I assume we would both come up with very close in value if we were doing the same subject.

Question: Do you mention these items and then indicate a value impact or just note them as part of normal wear and tear with no value attached?

Regards

Hal