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Two Story, no bedroom on 1st level

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Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
I'm curious how everyone is handling 2 story dwellings with no bedroom on the 1st level. With the graying of America IMO this will only continue to grow as an issue. Ask any "good" realtor and they'll agree that lack of a bedroom on the 1st level creates market resistance. New construction is also reflecting this. It seems there were a lot of 2 stories built 8-10 years ago that are the old salt box construction with the FR, DR, LR, 1/2 bath & kitchen down and all the BRs and full baths upstairs. With that said, I just got a call from an underwriter questioning why I made an adjustment on a comparable because it didn't have a bedroom on the 1st level. I replied because the subject and the other comparables did and the adjustment was supported. Case closed...or is it?
 

Ted Martin

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Kansas
How do you find out what the floor plan is? I think you are probably right that there is some market resistance. Saying that it is more of a gut feeling for me than anything I've been able to quantify yet. I've been thinking of doing a little regression work to see if my gut matchs the market. Mostly I've not observed it to be much of a problem when selecting comps because the older two stories all have the bedrooms on the upper level and only the newer floor plans have a main level bedroom. I can avoid the adjustment bullet by using apples and apples rather than apples and oranges.
 

liznindy

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Indiana
I will have to admit I am included in the "graying of America" bunch as I am just slightly over the hill......However, we must not forget the market of younger families, which in my area, seem to prefer all of the bedrooms together on the second level (want to be near the kids :!: , what are they thinking :?: )

So, to make an adjustment, I would think one must have supporting documentation that the market as a whole (not just a limited market) see the lack of a bedroom on the main level as a drawback.

In our market, ranches of similar size typically command higher prices which may be attributed to the lack of stairs or the added cost to construct (larger footprint, higher cost).

Of course, if possible, I try to compare two-storys with similar bedroom locations as the subject (in our MLS, the Realtors list the floor location of the bedrooms, M=Main floor, U=upper).
 
B

Bemis Pownall

Guest
How about a 2 story with kitchen upstairs???
We had a builder many years ago build a few in a value neighborhood. Think he went belly up. Back in 60's-70's.

Bilevel(split foyer) with kitchen in basement.? When its a walkout its kinda cool. We have a neighborhood with a bunch, think it was a builder option in the 70's.

:icecream:
 

Judy Whitehead (Florida)

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Florida
We have a builder who is building a 4BR 2.5 BA two story with 2 car garage and sells them for $110-$120K. All of the bedrooms are upstairs and the young families are snapping them up like hot cakes. There is a wide enough market of younger people who apparently really like them. This particular builder also sells very inexpensive ranches, as well, so the price is not the attraction, as far as I can tell. Even though in our county we are slightly over 50% retirees, there is still (apparently) a brisk market for them.

I had several of them years ago when my kids were young - learned to hate them. I did lose 20 pounds in 2 months after my second daughter was born, however, trooping up and down those stairs to her bedroom. My own built-in stairmaster!
 

Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
I might add that I only make this type of adjustment when my data is VERY good. ie: I know the listing agent to be competent and trustworthy AND the MLS sheet states where those bedrooms are.....if there is any doubt, no adjustment. It's funny, I find myself occasionally not using a good comparable because from past experience the listing agent has been highly suspect or unreliable.....example.....when they tell you their REO listing with 4 abandoned cars in the yard that sold in 2 days was a "dollhouse"......ever thought just maybe they're not very proficeint with the measuring tape as well? :)
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I had an owner tell me he paid $25,000 more for his two story because it had the master suite on the main level. I can't prove any major difference in value between his property and comparables with all bedrooms on the upper level.
 

BR549

Sophomore Member
Joined
Aug 6, 2002
Professional Status
Licensed Appraiser
State
Texas
My input is..... Well I feel for you, the new thing here is Georgia, is 500k homes with ONE bedroom above grade. approx 2300 sqft over daylight basements with all the other bedrooms!! YIKES THey are planning for the future when the kids leave and come back, and they just do not want the room.... But try to justify those $$ to underwriters.... But anyway, my thoughts are, just make DARN sure you are ready to back it up with data.
Stacy
 
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