Quad Level - Whats in GLA?

[ctapraser]

Thanks guys. I have a network of appraisers they count it as GLA like I would as this is how the market treats a Quad Level.

I will. I found this too:

Fannie Mae XI 405.05

The appraiser may deviate from this approach if the style of the subject property or any of the comparables does not lend itself to such comparisons. However, in such instances, he or she must explain the reason for the deviation and clearly describe the comparisons that were made So as long as the appraiser can define consistent comparables with below grade and above grade areas, and they give reasonable cause, below grade areas can be included.

I think I'm going to throw this back at them.

Are any of your comps similar, part of lower level considered in GLA, and support your OMV? If so just point out what comps are similar. If not it could be an issue as abbove clearly states "so long as the appraiser can define consistent comparables with below grade and above areas". While you can deviate fron the GUIDELINE you need to go back in time/distance as far a needed to show "market acceptance" with similar comps.

Good luck!!!

 

[Terrel L. Shields]

I am loath to treat basement - no matter the finish - the same as upper units.

The walls of most basements are concrete. The walls of upper levels are generally not. The walls of most basements are either not visible or have no siding. The lower level is usually a poured concrete floor. The upper level usually a wood subfloor....

So it is "different" and I can generally extract that difference from the market. The exception are walkout basements on lake shore lines...these tend to sell higher. I really don't know why.

 

[PropertyEconomics]

I am loath to treat basement - no matter the finish - the same as upper units.

The walls of most basements are concrete. The walls of upper levels are generally not. The walls of most basements are either not visible or have no siding. The lower level is usually a poured concrete floor. The upper level usually a wood subfloor....

So it is "different" and I can generally extract that difference from the market. The exception are walkout basements on lake shore lines...these tend to sell higher. I really don't know why.

Terrel ... my biggest issue has been with tri level homes ... a small portion on the entry level, bedrooms up and down on the upper and lower levels. The lower level is only about 50% below grade, and in our market, the entire area is considered heated living area by purchasers.
Not many true basements in New Mexico, a few, but not many.

 

[ZZGAMAZZ]

Even if you don't consider it as GLA, per se, the below grade area can be added as a line item in the SCA grid with an identical or similar sqft adjustment factor. It shouldn't be that difficult to identify the potential comparable properties with similar improvements that can be confirmed by realtor interviews...satisfying the client, arriving at a proximate value, without sacrificing credibility or integrity.

 

[PropertyEconomics]

Even if you don't consider it as GLA, per se, the below grade area can be added as a line item in the SCA grid with an identical or similar sqft adjustment factor. It shouldn't be that difficult to identify the potential comparable properties with similar improvements that can be confirmed by realtor interviews...satisfying the client, arriving at a proximate value, without sacrificing credibility or integrity.

The value may be credible doing it as you suggest .. the question comes in as to whether it is misleading to split the living area based on above or below grade purely because it is a "form" requirement? I can certainly see an argument that it is misleading IF the market considers the space all living area.

 

[ZZGAMAZZ]

Yes, I agree, although the "market" so to speak probably would be defined by MLS marketing comments, because neither the jurisdictional authority nor the assessor typically would address the distinction in a uniform manner--and the Forum including you on occasion frown upon appraisal judgment based on realtors' perceptions. In that scenario the decision could be based one one's "peers," but I never did figure out how to determine that sort of consensus in my area.

 

[VolcanoLvr]

Homes built on a site that slopes in 2 directions can be difficult....and tricky....and not easy! (Should I add any other descriptions?)

The basement is just that. The other levels can be considered above grade, but you should describe your methodology and why you did what you did.

Since you have a network of appraiser buddies in your area, and they tend to report as you indicated (and as I suggested) then you should be fine. EXPLAIN!

 

[JTip]

Instead of worrying about GLA, just compare apples to apples.

In one county the assessor includes the basement on bi-level/split level homes. So instead of 1,200 s.f., the tax card shows 2,400 s.f. which the agent discloses as ABOVE grade living area on the listing. Am I going to compare a split with a two story contemporary just because the GLA lines up? Heck no.

If the underwriter wants it all called basement, so what. Is that going to change your comparable selection and/or the final opinion of value? So all of your sales are 3,000 s.f. multi-levels with no basement/slab? Now they are all 1,500 s.f. with partial finished basements....

 

[Thomas Fiehler]

In our state it would be treated as basement. Two levels above grade and two levels below grade.

 

[Sandra Subotich]

Great input. In Michigan a Quad level has a small basement area that is typically the same as the entry level. Walking down 5 steps you will be in a 50% below grade area that is not considered a basement but living area added into GLA. Now a Tri Level has no basement we consider it to be on a slab foundation. Luckily I have 1 sale and 1 listing that are the same style and I used 2 ranch sales with an adjustment for style as quad level homes are considered an inferior style and a ranch is a superior style substitute in the market.

Its interesting how each state perceives difference styles. Our local assessors tax the lower level as GLA and treat it as living space and the market and local realtors also treat it like living space (realtors also treat finished basements as GLA - go figure).