What counts as a room?

Question

I just received the appraisal report for our refinance. It appraised for 10,000 less than it should have (I had an appraisal 6 mo ago and the mortgage co lost my file). I noticed numerous errors in the report, and I wanted to check on what counts as a room. They have it written that we have 7 rooms. I count 10 if bathrooms are included. Do bathrooms count as a room? what about laundry rooms? We also have an 8x8 soundproof music studio we built in the basement. If the studio is a room we actually have 11 rooms. Also they said our basement is unfinished. Does it need sheetrock to be considered a "finished" basement? When we bought the house a year ago it was listed as a partially finished basement. It has concrete floors, heat, light, and no flooding.

Thanks

Answer 1

The basement must have sheetrock or walls of some sort.

I've seen my share of appraisals in the law firm where I work, and I've not seen bathrooms count as a room -nor have I seen laundry/utility rooms count either, unless they were extraordinarily large. But that may just be a difference in the way appraisers do things, or a difference in the way appraisals are done from state to state. And the studio would just be included as part of the basement here - again, maybe not where you are though.

You could ask a private appraiser in your area how it's usually done there.

Answer 2

Ok.. I will try to answer this the best I can.... Rooms all count... bedrooms, living room, kitchen, dining room, bathrooms....

for it to be considered a bedroom it must have a closet... and yes in order for the basement to count as partially finished it must have sheetrock walls, carpeting, etc.

So you cant count the basement. Although upon selling it you can say it is partially finished... confusing I know. and the extra music room wouldnt count either.

Property values are declining all across the country so that is probably why your value went down. You can contact the past appraisal company for a copy of the file even if the mortgage company doesnt have it... if you paid for it you are entitled to a copy of it. Although they are only valid for 6 months.

At least that is how it goes in michigan... good luck

Answer 3

In order for it to be a legal room on an appraisal, It must meet certain requirements.

All Rooms have to have heat and electricity in addition to permanent walls and a roof. So many screened in porches and solariums and  the like do not count. heated pool rooms with glass walls do count as glass is considered a permanent wall.

If it is a bedroom, it must have a window of a certain size for fire  regulations. If it is a bathroom. It must have a window or an exhaust fan. Additionally, A bedroom must usually be about 8 by 8 but this varies. Under that and it is not a bedroom, but you can call it a den or nursery.

For a finished basement, the walls and floor have to be covered. In addition, it has to have windows of a certain size or a proper ventilation system. It also must have a sump pump.

For rooms that were built after you bought the house, unless you got a permit for it, they do not count. You may be able to get a permit now for previously built rooms, you will have to get a full inspection from a city approved professional and you will have to explain why you did not get one when you built the room. This is up to the planning department though and they dont always approve the permit and you may actually get fined if it not up to code, so you may want to leave it as is.

Bathrooms do not count as rooms at all and to qualify as bathrooms, they have to meet requirements.

As for the drop, many factors can contribute to that. new construction on your street can bring it down, a new large store or highway in the area can bring it down as well. Schools have a big impact, if  a school closes or if its rating went down can bring down your property value to a large degree. A newer development elsewhere in the city can bring it own if the prices are similar to what your valuation was. Most would rather buy new for the same price so it brings it down. A rise in crime rate,traffic.floods,and any other of dozens of factors can bring it down.

That being said, you can ask the evaluator if there is anything you can do easily and cheaply to bring the value up. It can often be as simple as a new coat of paint or refreshing the yard or even decluttering and rearranging furniture can affect the perception of the person doing the valuation. Ask the guy who did the last one, they are usually happy to give advice of that nature and schedule a new valuation when the work is done. you would be amazed at the difference just a little refreshing can do to your valuation.

Good luck