Subject Property Not ANSI Compliant

[Mike Ault]

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.

That's a good point. Forget typical. I would think that it would appeal to certain racial demographics more than others, and I would try and interview realtors familiar with their particular home purchasing priorities when trying to gather support for that adjustment.

 

[Overimprovement]

I have found the best comps for houses like that are immediately surrounding it (not sure what goes into a builder's mind). Even if you have to go back 15 years, you can still try to match a sale from that time period. Of course use percentage difference, not absolute dollar difference.

You can sometimes look at exterior pics to--usually on houses like this the side windows seem really close to the roof--well, because they are. Also look for kitchen cabinet difference between top and bottom, and see how close the tops are to the ceiling.

At 6'6", any doorway header would be below 6'...

I think ANSI considerations are the least of your concerns.

 

[Zoe]

Yeah, your target market shrinks big time with 6 ft 2 inch ceilings. You have way fewer buyers or renters that will even consider it.

You said it brushed your hair. Think about it. You said no way I would buy it.

 

[Zoe]

I would dig older sales and real estate agents to see if they know of anything similar and what they think the impact on value is. You could always go with a percentage adjustment based on cost alone.

Most all 2 x 4's or 2 x 6's which are wall studs are 8 foot tall at minimum.

It is almost definitely incurable obsolescence. I say that. If it is sitting on a beach with incredible view. It could be curable.

If you are doing this for a lender. Call them in the morning.

 

[BRCJR]

Go to other markets that may have some transfers of similarly impacted properties.

Compare to more typical property transfers, in that market, and glean a ratio to use as a multiplier for the valuation.

 

[Zoe]

I would feel claustrophobic. I don't like tight places.

 

[Tom D]

i would use the exemption. the issue is when anything out of the norm occurs with your appraisal. doesn't make any difference what it is. the problem is when you don't describe it. so, you describe the situation as best you can, explain what you did & why you did it. this goes for any non typical situation. you just have to put more effort into your explanation. that is all you can do. then it is up to the underwriter/lender to accept those conditions, or pass on the loan. typically, it's easier if your comps have the same dysfunctionality. it's when the comps don't have that functional issue that underwriter's butts tighten up.

 

[Zoe]

You know it will likely have a negative impact on marketability because the number of potential buyers just decreased dramatically.

 

[Zoe]

That makes me think they had to buy 6 foot long wall studs to build some of that property. Strange. Very strange. I don't even think code enforcement would approve that in many areas.

I am thinking is it possibly finished attic?

The below 7ft on 1st floor don't make sense to me. Did they cut a foot off of a 8ft 2x4 or 2x6?

That don't make sense because what would you do with that foot of 2 x 4 or 2 x 6 ?

 

[Zer000]

I have found the best comps for houses like that are immediately surrounding it (not sure what goes into a builder's mind). Even if you have to go back 15 years, you can still try to match a sale from that time period. Of course use percentage difference, not absolute dollar difference.

You can sometimes look at exterior pics to--usually on houses like this the side windows seem really close to the roof--well, because they are. Also look for kitchen cabinet difference between top and bottom, and see how close the tops are to the ceiling.

At 6'6", any doorway header would be below 6'...

I think ANSI considerations are the least of your concerns.

The gag is my office is doing several appraisals all for the same owner and they own the two houses next door to mine and they have normal ceilings lol. The doors on the second floor are basically ceiling level so I have been trying to find comps with shorts doors and windows to no avail. But for what the builders had in mind, who knows lol....1800s house with how man renovations between then and now.