Yet another appraisal issue

[Pam Pitts]

Just finishing a reno on a 2300 sf 4/2 in a historic/run down neighborhood. Meaning.. some homes have been restored to original luster ($350k), others are caving in ($14k).. then there is my house-- renovated (not restored) so should hit somewhere in the $150k-$170k range... so comps were tough with wide swings in pricing. 

I paid for the advice of an appraiser to guide my listing price. Heard something I have never heard before:

2 bedrooms downs stairs. Added a full bath off the master, and the other full bath is at the end a hallway. I created 2 additional bedrooms upstairs that was just open storage (I added framing, ductwork, electrical, closet, window) but no bath upstairs. 

Today I was told that for appraisal purposes the bedrooms upstairs won't "count" toward the value since there is no bathroom. They will obviously count as overall living space but not the same value as 2 bedrooms. Essentially, unless I add a bathroom(according to this appraiser), the money I invested in adding the bedrooms .. well it was wasted. I will get the appraisal back this week and will have to decide what to do if its super low.

Anyone ever heard of this? 

[Wayne Brooks]

It would be a 4 bedroom, but a great example of "functional obsolescence".