Literally!
While it is not uncommon to find a furnace in a closet of a room being used as a bedroom, when they are “directly” in the room, as part of the furniture in the room, it seems to somehow be a more obvious problem than if it was hidden in a closet–whether properly installed in the closet or not.
This “bedroom” had no secondary escape and rescue window–for escape or fresh air. With the door closed, there would likely be insufficient combustion/dilution air for proper operation of the furnace–or the humans in the room. This condition would increase the likelihood that combustion by-products would enter the room.
Open flame combustion appliances should never be located in sleeping areas (even though there are some that are “allowed”–contrary to good judgement).
As an inspector, I would not call this room a bedroom even if the property was listed that way–and even if it had a nice bed to watch the warm glow of furnace from–or to sleep forever in.
By Charles Buell, Real Estate Inspections in Seattle
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I had an inspection where the “4th” bedroom was not a legal bedroom and the buyer was going to demand a reduction in sales price.
Yes, this is always a consideration. I have houses where there were several rooms that I could in good conscience not call a “bedroom” or “sleeping area.” Sometimes you just have to let the chips fall where they fall and then watch the parties arm wrestle. Typically I don’t think their are ill-intentions—they just aren’t aware of the requirements sometimes. Add to that that appraisers get it wrong too.