Posted by RRSmith on December 02, 1999 at 08:44:42:
IF you rent the room on a roomate basis the additional income will pay for the improvement in 13 months or less? If so I would have to go for this project, if not I would ask the L/O renter if they would like to kick in for it. If it produces more income it should appras. for more, but then again I could be wrong.
Appraisal Question - Posted by Glenn-PA
Posted by Glenn-PA on December 02, 1999 at 06:48:20:
I recently got a contract on my third completed rehab. I purchased the house for $25k and repaired for $7800 for a total of $32,800 invested. I got a full price offer of $54,900 with me paying closing costs. I stand to make a good profit but I’m concerned about the appraisal. The house was advertised by the realtor as a 3 bedroom however the third bedroom is actually a very large, very nicely finished attic. The attic area has two closets but doesn’t have it’s own seperate heating. Will an appraiser count this very nice room as a bedroom as it was advertised or does it need it’s own heat to be counted as such? I’m trying to figure out if I should send my electrician back in to add baseboard heat prior to the appraisal. Any advice?
Thanks - Glenn-PA
Re: Appraisal Question - Posted by TomC MD
Posted by TomC MD on December 02, 1999 at 09:49:45:
Easy solution. Grab a bedroom set and put it up there before the appraiser arrives! Take it from your house, buy a cheap one at a thift shop, borrow one etc.
Once you have it set up as a bedroom, I bet the appraiser sticks his head in there and says, “Oh, another bedroom.”
Re: Appraisal Question - Posted by Kelly
Posted by Kelly on December 02, 1999 at 08:59:25:
We resently had a house appraised for a refinance with the same situation as yours. It had a nicely finished walk up attic bedroom. There was a heat duct but it worked so poorly the tenant has to run a space heater. Anyway the appraiser did count the room as 3rd bedroom. I would’nt even bring up the heat situation to the appraiser. He might not even catch it. If he does and requires a heat duct then call the heating people. You already have a contract on the house so the buyers must have accepted this condition. (Hopefully you disclosed this on your disclosure statement).
Kelly