Subject Property Not ANSI Compliant

[Mike Ault]

Had to give you something to criticize

You didn't have to start so early in the day, though. Pace yourself…

 

[The Bob]

I would use the GXX001. The berm home doesn't meet ANSI because All living area is below grade. The OP house doesn't meet ANSI because ALL of the living area is below 7'.

 

[Zer000]

So after reading some of the replies I feel like there I two directions I can go:

1. Use the GXX001 code and proceed with the report and explain the best I can

2. Report the GLA as 0 (The lender does not want me to do this) and then add the 1500+ square feet for the entire house on a separate line and adjust accordingly


I agree that the functionality of the house is affected and should be adjusted for, but I am unsure of how to derive an adjustment while being able to support that adjustment. I went back 3 years for comps and could not find one that definitively has low ceilings.

 

[Mike Ault]

So after reading some of the replies I feel like there I two directions I can go:

1. Use the GXX001 code and proceed with the report and explain the best I can

2. Report the GLA as 0 (The lender does not want me to do this) and then add the 1500+ square feet for the entire house on a separate line and adjust accordingly


I agree that the functionality of the house is affected and should be adjusted for, but I am unsure of how to derive an adjustment while being able to support that adjustment. I went back 3 years for comps and could not find one that definitively has low ceilings.

You can also support an adjustment by "interviewing market participants" and tabulating the results. You can interview three different realtors active in your area and ask them how much of a discount a typical buyer would expect when purchasing that property with its latent defects. Be sure to get their feel for how that discount would vary as the supply of suitable substitutes does as well. Sucky way to do it, but it's better than nothing.

 

[Zoe]

So I am appraising a property for a conventional refi, it is a detached SFR built in the late 1800's in an older borough. The problem is that all the ceilings on both floors are below 7' in height, some are so low on the second floor that the top of my head was touching the ceiling. Now according to ANSI this would technically be a house with 0 GLA, so I am struggling with how to approach this. As of right now after some discussion with others is to use the GXX001 code and proceed like a normal report. Does this seem like an appropriate use of this code? Typically in my area the normal non ANSI compliant areas are 3rd floor attics with sloped ceilings which are usually less than 500 square feet, the subject property is 1500+ square feet. I'm not really sure how else to proceed (the lender has told me to proceed) because the cost to cure would be insane and realtors are terrible in my area in regards to ANSI so finding comps with low ceilings are a guessing game with MLS photos, and trying to extract a market reaction to low ceilings seems impossible. Just wanted to see what you guys think, thanks!

How tall are the ceilings? 5 ft? And you’re 5 ft 1 inch?

Your probably not buying that house.

 

[CGinMN]

So after reading some of the replies I feel like there I two directions I can go:

1. Use the GXX001 code and proceed with the report and explain the best I can

2. Report the GLA as 0 (The lender does not want me to do this) and then add the 1500+ square feet for the entire house on a separate line and adjust accordingly


I agree that the functionality of the house is affected and should be adjusted for, but I am unsure of how to derive an adjustment while being able to support that adjustment. I went back 3 years for comps and could not find one that definitively has low ceilings.

-Has the subject previously sold? If so you can pair the prior sale to see what the market reaction was.
-Is the low ceiling height the result of a "drop" ceiling? If so, what would be the cost to cure?

 

[Zer000]

How tall are the ceilings? 5 ft? And you’re 5 ft 1 inch?

Your probably not buying that house.

Im 6’0” and the first floor had ceilings that were 6’6” and the second floor has ceilings low as 6’2” that my head hits with boots on lol so no I wouldnt buy

 

[Zer000]

-Has the subject previously sold? If so you can pair the prior sale to see what the market reaction was.
-Is the low ceiling height the result of a "drop" ceiling? If so, what would be the cost to cure?

The last sale was 20+ years ago with a listing with little to no information. And no its a normal ceiling with plaster so the cost to cure would be an exorbitant number to raise both levels ceilings

 

[Dublin ohio]

You can also support an adjustment by "interviewing market participants" and tabulating the results. You can interview three different realtors active in your area and ask them how much of a discount a typical buyer would expect when purchasing that property with its latent defects. Be sure to get their feel for how that discount would vary as the supply of suitable substitutes does as well. Sucky way to do it, but it's better than nothing.

I understand your approach. But how would an agent know the "discount" if there haven't been any similar sales in years. As far as a "typical" buyer. Most "typical" buyers wouldn't even consider it. Unless the "typical" buyer in the area is only 5' tall.

 

[CGinMN]

Interesting. If you post the sketch showing the interior layout/walls + some photos you might get some good feedback on how to solve this.