Basement vs built in garage/basement

[Mack McClain]

No, Im not confusing anything. I'm trying to explain the difference in cost, which is used in the cost approach and the difference in market value, which is used in the sales approach.

In my market area, a two car attached garage does not have the same value as a two car built-in garage. You have to walk up stairs to get to the main living area of the house from a garage built-in basement. The market does not see this as equal in utility to a garage you walk through a door to get to the main living area of the house.

My question was...whats cost per sq ft difference do you come up with when using M&S, between an unfinished basement and a garage built-in the basement?

Having a garage in the basement does not make the basement smaller. Its the same size. For example, what if the you have a 1000 sq ft of unfinished basement with no interior walls and a garage door...what do you call that?

 

[christopher uphold]

Ok, the sales comparison grid is a whole different issue. 1000 sf house, 1000 sf basement that has a partitioned wall and garage door. In the foundation section on improvements do you choose full basement for foundation? Lender wants partial basement and then in car section built in garage. My thoughts are the foundation is what home is built on, be it slab, crawl space, basement or combination of those. In this instance, full basement and in car section built in garage. Now, is there a market value difference for a home with built in garage vs home without built in garage in basement? Market analysis will show that and be addressed on sales comparison grid. My discussion is purely foundation related. If you mark partial basement and that is it in foundation section, seems misleading unless you explain further that there is a built in garage as partial foundation also. I just find it odd that if that were how Fannie Mae wanrpted it, they would have had that option in foundation section?

 

[Mack McClain]

Im with you, CU. Basement foundation, built in garage in the basement area. Explain what you are doing, whichever way you do it.

To me a partial basement foundation means theres part of the home over a basement and part of the home is over a crawl space, slab, piers, etc....for example, a split level home. Builtin Garage is not an option for foundation.

 

[sputnam]

It's a full basement. Part of it is being used as a garage. Part of it is being used in other ways. The only tricky part about it...and it's not that tricky....is make sure you don't double-dip on adjustments. A similar comp with basement but no garage gets a 0 adjustment...or some appraisers adjust a little to compensate for the overhead doors, etc. A similar comp with or without basement but with a separate garage will get a - adjustment for garage....since the subject's garage is accounted for in the basement part of the grid.

 

[christopher uphold]

well put sputnam! That's how I look at it also

 

[residentialguy]

Partial basement and built in garage. How does the space function? Partial basement and built in garage. I feel I'm repeating myself...:new_smile-l:

Worth repeating. Partial basement and built in garage.. You can't have both full basement and tuck garage...unless the garage is next to the full basement (meaning the basement is the same size as the main level foundation.

If part of that full basement is being used for something else, then it is no longer a full basement...it's part basement. You can't double dip.

 

[residentialguy]

well put sputnam! That's how I look at it also

Then you're both wrong. So using that same flawed logic of yours, a finished attached garage with a bonus room over it should be considered GLA. Or if you have a detached garage that is partially below grade, you would have a detached basement. :new_multi:

 

[Mike Kennedy]

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.

Can you please post a sample SCA grid in support of your "full basement plus a built in garage" method? Assuming, per OP the garage is segregated from the bsmt. by a firewall btw. the basement and the garage.

e.g. Ranch

First Fl. GLA 1000sf
Basement "Full"/1000sf
1C Gar.Bsmt __________

 

[Mack McClain]

It's a full basement. Part of it is being used as a garage. Part of it is being used in other ways. The only tricky part about it...and it's not that tricky....is make sure you don't double-dip on adjustments. A similar comp with basement but no garage gets a 0 adjustment...or some appraisers adjust a little to compensate for the overhead doors, etc. A similar comp with or without basement but with a separate garage will get a - adjustment for garage....since the subject's garage is accounted for in the basement part of the grid.

 

[Mike Kennedy]

the subject's garage is accounted for on the Garage/Parking line of the grid - not the Basement Line.