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Gba For Multi Families

Discussion in 'General Appraisal Discussion' started by Delta85, Oct 30, 2009.

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  1. Delta85

    Delta85 Elite Member

    6
    Sep 22, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Connecticut
    According to Fannie Mae guidelines finished basement area should be included in the GBA on multi family reports. On the sales comparison grid there is a line for GBA as well as a line for Basements and finished areas of the basement. Do you adjust for one and not the other? I've always adjusted for basement area seperately and not as part of the GBA. How do you guys do it?
     
  2. Elliott

    Elliott Elite Member

    88
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oregon
    R.W. Emerson said, A foolish consistency is the hobgoblin of little minds, adored by little statesmen and philosophers and divines.

    Fannie Mae wasn't around at the turn of the 20th century or I'm sure Emerson would have
    included it next to divines. Be consistent, logical, explain and you should be fine.
     
  3. Mike Kennedy

    Mike Kennedy Elite Member

    250
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Fannie 2009 Selling Guide Pg .473
    Gross Building Area​
    Gross building area:
    • is the total finished area including any interior common areas, such as stairways and hallways of the improvements based on exterior measurements.
    • is the most common comparison for two- to four-unit properties.
    • must be consistently developed for the subject property and all comparables used in the appraisal.
    • must include all finished above-grade and below-grade living areas, counting all interior common areas such as stairways, hallways, storage rooms, etc.
    • cannot count exterior common areas such as open stairways.
    Fannie Mae will accept the use of other comparisons for two- to four-unit properties (such as the total above-grade and below-grade areas) provided the appraiser:
    • explains the reasons he or she did not use a gross building area comparison, and
    • clearly describes the comparisons that were made.

    * let the Market guide you
     
  4. LI-Appr

    LI-Appr Senior Member

    0
    Nov 15, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Above Grade. Fannie can take a leap. Explain Explain, Explain. Sketch the basement separately. That even Frick and Frack can understand. Just be consistent in your report. Guidelines are not steadfast rules.
     
  5. Delta85

    Delta85 Elite Member

    6
    Sep 22, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Connecticut
    I agree. I normally only include above grade finished areas in the GBA of the grid and then adjust seperately for finished basement areas. I was having a bit of a go around with an AMC clerk who did not understand why I did not want to include a finished basement in the GBA and then have to address the differences between finished and unfinished basements as well. I had lengthy commentary throughout the report indicating what I was doing.
     
  6. Mike Boyd

    Mike Boyd Elite Member

    0
    Jan 18, 2002
    Professional Status:
    Retired Appraiser
    State:
    California
    I also agree. It's hard enough to get the gLa for the comps. Basement space is seldom reported. In my area, a baasement is a basement is a basement whether it is a 10 x 10 space with a dirt floor or a 20 x 40 space with a concrete floor. A finished basement is altogether different and would be handled probably as gla.
     
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