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Finished Basement as GLA or not?

Discussion in 'Newbies/Appraiser WannaBe' started by GaryDodd, Mar 17, 2003.

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  1. GaryDodd

    GaryDodd New Member

    0
    Oct 24, 2002
    I'm getting different stories on whether I can count below grade finished area as living space. I have done many appraisals with finished basements and have not counted the living space as GLA per ANSI std (04/08/1996). However, I will be doing an appraisal later today on a subject where the children's bedrooms are ACTUALLY in the finished basement. I asked what the upstairs bedrooms are being used for, and they said exercise room and tanning room. SO, since they are actually living in the below grade finished area, can I count this as GLA???? Also, its not a customary practice for this to occur in this area. THANKS!
     
  2. Mountain Man

    Mountain Man Elite Member

    30
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Georgia
    That's the key to your answer. Call it what it is, not how THEY are using it.
    In my area, due to the mountains, we have many "one bedroom" homes. The real estate people list them as 3 or 4 bedrooms, but they are not. The finished basement is almost always of a lesser quality finish compared to upstairs.
     
  3. Dave Smith

    Dave Smith Senior Member

    0
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Wisconsin
    Gary:

    This is straight from the Fannie Mae guidelines. Read it closely and you will have the answer to your questions.
     
  4. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    Just one more little add on:

    It really doesn't matter what the current occupants are using each room for. You have bedrooms upstairs, if this house was vacant - you wouldn't even question this issue. They have bedrooms upstairs and finished rooms in the basement. Not even a functional problem.

    I just hate it when I start over-analyzing when I don't have to.... and tend to do that toooo often. Vacant houses are easier.
    :roll:
    Now, just give yourself the old palm to the forehead "Duh" and finish the report.
     
  5. Jo Ann Meyer Stratton

    Jo Ann Meyer Stratton Elite Member

    41
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    Fannie Mae's sentence toward the end of that section about consistency is the key. If you can find all comparables with similar below grade levels and know what the square footage of each level is, then above grade on one line, below grade on another line. If you can not find out how much square footage is on each level from anybody, and you can not go measure each comparable and tromp through the interior of those homes, you might have to report all areas on one line so that you will be consistent. And then you provide lots and lots of explanations and then some more explanations. But the two important things are to be consistent and explan.
     
  6. Tim Hicks (Texas)

    Tim Hicks (Texas) Elite Member
    Gold Supporting Member

    62
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas
    What's a basement? Just kidding. The answer is "not above grade living area". Hopefully there are like/ind properties in the neighborhood and you can find other homes with basements to compare it to. No matter how well finished, you should count it as "below grade". Here in TX, there are few basement homes, but we are required to provide similar style homes with similar finished basements when we do appraise one. Luckily, where there is one, there are usually others. Not too many, but at least one.
     
  7. Mike Garrett RAA

    Mike Garrett RAA Elite Member

    25
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    Finally an easy question......"NO!!!!!".
     
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