What would be considered health or safety hazards in a gutted bathroom?

[Non Sequitur]

Who said $500 for bath remodel? $500 is to cap off plumbing and reinstall drywall, lock the door and it's now a closet.

That would go over like a lead balloon. But a closet conversion may work, to many unknowns. I'm only working with what the OP posted and the assumption that a bath wasn't originally built as an after thought, that it does have some functional utility that would be missed if it were removed. Either way it's not a call I would make, let the borrower fix it or provide an estimate. I'm not pulling a cost to cure out of my rear and probably wouldn't submit an as-is report.

 

[residentialguy]

That would go over like a lead balloon. But a closet conversion may work, to many unknowns. I'm only working with what the OP posted and the assumption that a bath wasn't originally built as an after thought, that it does have some functional utility that would be missed if it were removed. Either way it's not a call I would make, let the borrower fix it or provide an estimate. I'm not pulling a cost to cure out of my rear and probably wouldn't submit an as-is report.

It's a 3rd bath....

adjust for bath variances.

 

[Non Sequitur]

It's a 3rd bath....

adjust for bath variances.

Which 3rd bath? An extra hall bath or one of those fancy schmancy en suite bathrooms the cool people on TV like to brag about? We don't know, but I wouldn't proceed without an estimate and wouldn't call the property an as-is C1-C4, a gutted bath regardless of the cost to cure isn't normal wear and tear. We live in the UAD world now, we're not in the past where average meant whatever you wanted it to.

 

[residentialguy]

It isn't wear and tear.

 

[Scott Kibler]

While I don't agree with $50 number either (maybe $500), it seems much more reasonable than dinging the whole property to C5/6 and making huge adjustments.

Who says the adjustment has to be huge? This debate is simply how to classify the condition of the property in compliance with UAD standards. Maybe the market reaction for this assumedly C5 property is $500 in comparison with the assumedly C4 comparables. The debate is not a value one, per say, its a reporting one. The value should be the same whether you report it on a 1004 using UAD gobbledeegook or on a general purposes form using commonly understood language and abbreviations.

 

[Non Sequitur]

It isn't wear and tear.

Then it falls outside of the UAD definitions of as-is C3 and C4. Common sense or not, cost to cure or not, Fannie defined the terms and I'm not going to battle a reviewer 2 years down the line if the property falls into foreclosure with the still gutted bathroom. Let the borrower and lender deal with it. And they can, escrow to repair the bath, problem solved without my help.

 

[Buddy5]

C5: The improvements feature obvious deferred maintenance and are in need of SOME significant repairs. SOME building components need repairs, rehabilitation or updating. The functional utility and OVERALL livability is somewhat diminished due to condition, but the dwelling remains usable and functional as a residence.

The improvements feature obvious deferred maintenance and are in need of ONE significant repair. ONE building components need repairs, rehabilitation or updating. The functional utility and OVERALL? livability is somewhat diminished due to condition, but the dwelling remains usable and functional as a residence.

My Caps. I don't see how this house is a C5.

 

[MoJo]

B4-1.2-03: Requirements for Postponed Improvements (04/15/2014)

https://www.fanniemae.com/content/guide/selling/b4/1.2/03.html

When there are incomplete items OR conditions that do affect the safety, soundness, or structural integrity of the property, the property must be appraised subject to completion of the specific alterations or repairs.

 

[residentialguy]

That we know....a bath being renovated does not fall into that scenario.

 

[PhysicalDepreciation]

It's kind of ironic, but my house sounds very similar to this situation. Bought the house 4 years ago and totally gutted and remodeled it.....with the exception of the master bath. It's a total shell. It has been like this for 3 years now. We have 2 other full baths and it simply acts as a closet. I would have a really hard time with my house being classified as C5 just because the master bath is a shell(everything else has been replaced).
PS I don't think I can hold off the wife any longer....after 3 years I'm going to get this completed over the summer