- Joined
- Jan 15, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Texas
OK, FHA gurus. I had a FHA assignment of a 1965 tract home in a small town. It is a 3/2, brick home with hundreds of homes just like it in the area. Everything is fine, newly scraped and painted, no repairs needed, only a termite inspection required, except...... The master bedroom has its own bath. One large closet, across from the closet is a similar size room with a tub and toilet. There should be a exterior vanity running down the wall with a sink in between the closet and bath area, but there is none. There is a blank wall and no evidence of a previous vanity. I have seen this set up 1,000+ times and there is always a vanity and sink. Now, if you want to wash your hands, you must go out the bedroom and down the hall to the other bath.
I figured this is just a functional problem, estimated a cost to cure and adjusted that amount in the market grid as functional utility. The sales price was not a problem. The problem is the underwriter now wants a letter from me stating that the vanity is not there by design. however, when I asked the listing agent, she said the plumbing was there in the walls, it just was not installed. Now, if it was a two year old home, I might believe it was by design. However, a 37 year old home may or may not have originally had the vanity. All the other homes in the area do. I told them I will not give them letter stating it is by design, because I do not know this is true. I also pointed out that I did not require adding the vanity, I functionally depreciated for it. Meanwhile, the whole deal is at a stalemate because the appraiser won't do as he was told. Oh, they bought the home three years ago just this way and nobody said anything then. Wanna bet, the appraiser never mentioned it.
What say ye?
I figured this is just a functional problem, estimated a cost to cure and adjusted that amount in the market grid as functional utility. The sales price was not a problem. The problem is the underwriter now wants a letter from me stating that the vanity is not there by design. however, when I asked the listing agent, she said the plumbing was there in the walls, it just was not installed. Now, if it was a two year old home, I might believe it was by design. However, a 37 year old home may or may not have originally had the vanity. All the other homes in the area do. I told them I will not give them letter stating it is by design, because I do not know this is true. I also pointed out that I did not require adding the vanity, I functionally depreciated for it. Meanwhile, the whole deal is at a stalemate because the appraiser won't do as he was told. Oh, they bought the home three years ago just this way and nobody said anything then. Wanna bet, the appraiser never mentioned it.
What say ye?