Basement vs built in garage/basement

[Mr Rex]

It doesn't matter what you call it, as long as you aren't counting the square footage twice in your market grid. It is either garage area, OR it is full unfinished basement. You can't have it both ways at the same time.

Unless your market area recognizes a value difference from basement vs garage of course.

 

[Mack McClain]

Unless your market area recognizes a value difference from basement vs garage of course.

You still give the built-in garage credit in the sale grid. You list the house has a built-in garage and give whatever the market says its worth.

 

[Mountain Man]

You still give the built-in garage credit in the sale grid. You list the house has a built-in garage and give whatever the market says its worth.

So you are calling it a full basement AND a 2 car garage built in?
If so, you are wrong... doing it wrong. You do not double count areas. That's like counting the area over the vaulted ceiling in the second story GLA.

 

[Mr Rex]

You still give the built-in garage credit in the sale grid. You list the house has a built-in garage and give whatever the market says its worth.

Of course, but the premise that the built in garage and basement are the same value wise is market specific, and I'd dare bet with better research would show a definitive difference. YMMV. Dig it? I'm still digging.woohoo

 

[Mack McClain]

So you are calling it a full basement AND a 2 car garage built in?
If so, you are wrong... doing it wrong. You do not double count areas. That's like counting the area over the vaulted ceiling in the second story GLA.

Its not wrong. Its not double counting any area. You measure the basement. Its a full basement...say 1000 sq ft. That is what is calculated in the cost approach and sales grid.

There is no additional sq ft added to the appraisal for some of that area being used as a built-in garage. You have a 1000 sq ft basement You do need to give the subject credit for the added utility of being able to park the car in that area compared to a house that has open parking or no parking. So, an adjustment is warranted in the sales grid.

This is nothing like a vaulted ceiling.

 

[Mountain Man]

Its not wrong. Its not double counting any area. You measure the basement. Its a full basement...say 1000 sq ft. That is what is calculated in the cost approach and sales grid.

There is no additional sq ft added to the appraisal for some of that area being used as a built-in garage. You have a 1000 sq ft basement You do need to give the subject credit for the added utility of being able to park the car in that area compared to a house that has open parking or no parking. So, an adjustment is warranted in the sales grid.

This is nothing like a vaulted ceiling.

I disagree, but I certainly will call on you for appraisals when I need an appraiser to find extra square footage!

 

[Mack McClain]

I disagree, but I certainly will call on you for appraisals when I need an appraiser to find extra square footage!

Please, show me how there is extra square footage...I can't wait to hear this.

 

[TJSum]

Its not wrong. Its not double counting any area. You measure the basement. Its a full basement...say 1000 sq ft. That is what is calculated in the cost approach and sales grid.

There is no additional sq ft added to the appraisal for some of that area being used as a built-in garage. You have a 1000 sq ft basement You do need to give the subject credit for the added utility of being able to park the car in that area compared to a house that has open parking or no parking. So, an adjustment is warranted in the sales grid.

This is nothing like a vaulted ceiling.

But you do not have a 1000 sf basement, you have a 600 sf basement with a 400 sf built-in garage (or whatever). When you use Marshall and Swift on the Cost Approach, they separate these two areas as they should.

Why would you make the adjustment at the garage line for the difference between built-in or attached, as the parking amenity is identical. The difference appears in the basement utility and this is where the adjustment should show.

 

[Mack McClain]

But you do not have a 1000 sf basement, you have a 600 sf basement with a 400 sf built-in garage (or whatever). When you use Marshall and Swift on the Cost Approach, they separate these two areas as they should.

Why would you make the adjustment at the garage line for the difference between built-in or attached, as the parking amenity is identical. The difference appears in the basement utility and this is where the adjustment should show.

So, you build a house with a 1000 sq. ft. basement. Two years later, you cut a hole in the wall and put in a garage door. Now, you don't have a 1000 sq ft basement? I guarantee you a potential buyer still sees the 1000 sq ft basement.

A 2 Car attached garage is not identical to a 2 Car garage built-in.

A two car garage has its own roof, walls and floor (on a one level home). A built-in two car garage's walls, roof and floor are already there...all you add is the door. Its under the roof line of the main level, its walls and floor are already part of the basement. The utility is also very different. A two car garage built-in the basement is inferior, due to having to walk up stairs to get to the main level of the home.

There's little costs difference between building a 1000 sq ft basement vs building a 1000 sq ft basement and putting a garage door in. Theres a big cost difference between building a 1000 sq ft basement and then adding an attached garage to the house.

In the cost approach are you giving the built in garage more $ per sq ft than the basement?

 

[TJSum]

In the cost approach are you giving the built in garage more $ per sq ft than the basement?

Not really "giving" it anything. I just follow the Marshall and Swift protocol which treats basements and built-in garages differently.

You are confusing the cost of construction with the market value of a one or two car garage. The garage value is the same whether it is built-in or attached, the adjustable difference comes within the basement utility of having a larger/smaller basement.