How do I explain this

[Michigan CG]

I'd love to know that market because I bet not only does the market see that area as living space, but it probably pays more than $1,000 for a two car garage or $1,000 for central air, or $500 for the half bath.

To me he looks like 1. a number hitter; and 2. like he is trying to hide the fact that his house suffers from a possible functional inadequacy because it has only one bath while the rest have 1.5 baths.

I don't know the market...obviously just shooting off the cuff.

<partially redacted, Rex proved me to be an idiot>

To the original poster, I would include that area in basement per ANSI standards. I don't really care what other appraisers are doing, I report according to a nationally accepted standard and according to ANSI it is below grade and therefore basement.

 

[Mr Rex]

Tim, where do you get $1 psf for the lower level? The FP adjustment is suspect, but the top of the grid and that comps sales price (as well as others with FPs) might reveal otherwise. Depending on the utility of the lower level, the 1/2 bath might be the same. Giving him the benefit of the doubt, it seems he is serving 2 masters, correctly reporting the above grade area, and reporting the lower level separately but not as below grade due to market perception. It seems he almost has almost model matches except the 1/2 baths and 1 with a FP. How hard could it be and how much fluffing could he do? Since the OPs concern centered on the reporting of GLA, I'm just saying

 

[Michigan CG]

OOOPS....my bad Rex....I read too fast. Thanks for pointing that out. I am proven wrong again....(you aren't the first).

 

[Craig Farr]

If the appraisal handles the subject and comps CONSISTENTLY then it don't matter whether ANSI or ANAL or ANIMAL has different guidelines. It's a good appraisal!

 

[Peacemaker]

If the appraisal handles the subject and comps CONSISTENTLY then it don't matter whether ANSI or ANAL or ANIMAL has different guidelines. It's a good appraisal!

ANSI is one thing, but Fannie is very clear that below grade areas go on the basement line (if you are working with one of their forms). Nothing says you can't adjust (or not) at the same rate as above grade areas if that's what the market data indicates. But how hard is it, to break this out? Sorry but I don't think that just getting the value "right" makes it a good appraisal.

 

[Laughing Heir]

While it may not be technically correct, it does not appear that he is trying to mislead the reader of the report. I'll qualify that with it would not be misleading if all of those comps are also split/tri-levels.

There's a lot of bi-level style homes in my region that are built on a slab; four-foot knee wall of block and the rest of the lower level is wood framed. Technically the lower level is the basement, but, it's above grade. It would be acceptable, IMO, to use all similar type dwellings in the sales comp approach and treat the lower level either way; it would be extremely misleading to use a center hall colonial and treat the first level as the lower level of a bi-level.

Apples to Apples was pounded into my brain from my first day.

 

[Mztk1]

Whether or not it is counted as living area depends a lot on that first level. Most Tri-split level houses have that first level above grade with the main level raised half a story from there and the third level above that. There is usually a crawl space or a basement under the first level. We know in the subject there is a crawl space. Crawl spaces are typically built to about 18" or more above grade. Therefore, it seems unlikely that the first, or ground level, isn't living area. Without seeing a picture, none of us can really know what we have.

 

[Lost Cause]

I was so confused by the various responses I had to go back and re-read the original question.

Joker is not asking that this space be necessarily included as GLA. I read it that he stated that this "lower level" should reported as either GLA or basement space, but not as some kind of separate amenity (such as done in the example - the way an auxiliary building or some other unusual amenity might be included in a grid analysis). I agree - it's either GLA or basement. Joker, at the very least, someone should tell this appraiser to very specifically define what he/she means by "lower level" in his report.

 

[Lee Lansford]

I was so confused by the various responses I had to go back and re-read the original question.

... I read it that he stated that this "lower level" should reported as either GLA or basement space, but not as some kind of separate amentity (such as done in the example - the way an auxiliary building or some other unusual amenity might be included in a grid analysis)...

Me, too.

If "it" is one or the other, then report it for what it is. Doing otherwise just adds confusion.

 

[Carnivore]

I've been reviewing some appraisals lately and one appraiser keeps doing this:

The subject property is a tri-level, basic tri-level (lower level, main level, and an upper level). They are reporting the GLA as the main and upper level only. They are only placing the lower level sq ft on the sales comparison grid like you would a pool or other amenity and making an adjustment there.

As I understand it the appraiser is supposed to report the subject property as the market recognizes it. Every other tri-level by all the other appraisers in the area includes the lower level in the GLA or as basement sq ft.
I've tried to explain this to them before, but that are not getting the idea. Help please

View attachment 16495

To the original poster, I would include that area in basement per ANSI standards. I don't really care what other appraisers are doing, I report according to a nationally accepted standard and according to ANSI it is below grade and therefore basement.

I was so confused by the various responses I had to go back and re-read the original question.

Joker is not asking that this space be necessarily included as GLA. I read it that he stated that this "lower level" should reported as either GLA or basement space, but not as some kind of separate amentity (such as done in the example - the way an auxiliary building or some other unusual amenity might be included in a grid analysis). I agree - it's either GLA or basement. Joker, at the very least, someone should tell this appraiser to very specifically define what he/she means by "lower level" in his report.

Joker,

I liked both of the above responses and agree. So I would like to add something to the discussion that your brought up in your OP.

Clearly this one appraiser does not seem to be following any published standards. He also is not operating similar to his peers(per you). Thats a tough one because who really knows what there peers are doing.

"COMPETENCY RULE
; or alternatively, must:...





...Comment: Competency applies to factors such as, but not limited to, an appraiser’s familiarity with a specific type of property, a market, a geographic area, or an analytical method. If such a factor is necessary for an appraiser to develop credible assignment results, the appraiser is responsible for having the competency to address that factor or for following the steps outlined above to satisfy this COMPETENCY RULE


Just my thoughts.