No heat on 2nd floor/conventional loan

[nb23yrs]

Hello-
This is northern Ohio. Working conventional loan appraisal of an old 2 story dwelling with 3 bedrooms on 2nd floor. Dwelling was constructed in 1900 and has new roof, siding, windows, bath, etc. But darned cold upstairs. Only heat source is an old centrally located floor furnace (tenant stated "gas company told them not to use it since it's too close to the wall") and a vented wall furnace on the first floor. No heat in the bathroom or the second floor bedrooms. This is a conventional purchase: do I make it subject to installation of heat source on the second floor and bath? Apply functional obsolescence? Call my client?

 

[CANative]

Call the client and see if they want you to condition the appraisal on installation of permanent heating system.

I don't think the GSEs have the same hard stop on this that FHA has.

If they don't give you guidance make the appraisal "as is" but describe and explain. And yes, I would make an adjustment to comparables that don't have adequate heating.

Functional obsolesence is for the cost approach.

 

[Mr Rex]

Call the client and see if they want you to condition the appraisal on installation of permanent heating system.

I don't think the GSEs have the same hard stop on this that FHA has.

If they don't give you guidance make the appraisal "as is" but describe and explain. And yes, I would make an adjustment to comparables that don't have adequate heating.

Functional obsolesence is for the cost approach.

Think so? Does it make you wonder what that line in the sales grid for functional utility is for?

 

[Terrel L. Shields]

...what Rex said...

 

[Michigan CG]

...what Rex said...

Yup,

0123456789

 

[CANative]

Make a condition adjustment in the grid. It's where it would be expected. If you want, make it in the functional utility section. If that makes you happier.

 

[Mike Kennedy]

Hello-
This is northern Ohio. Working conventional loan appraisal of an old 2 story dwelling with 3 bedrooms on 2nd floor. Dwelling was constructed in 1900 and has new roof, siding, windows, bath, etc. But darned cold upstairs. Only heat source is an old centrally located floor furnace (tenant stated "gas company told them not to use it since it's too close to the wall") and a vented wall furnace on the first floor. No heat in the bathroom or the second floor bedrooms. This is a conventional purchase: do I make it subject to installation of heat source on the second floor and bath? Apply functional obsolescence? Call my client?

A. what do other similar vintage homes exhibit?
B. what does the governing municipality require for year round occupancy of the second floor? was the original heating system "grandfathered"?

c. suggest reading through these comments from owners of similar aged homes:

http://ths.gardenweb.com/forums/load/oldhouse/msg0602123611877.html