Standardized Property Measuring Guidelines

[RCA]

In your example, I would disagree with you. You can't take a 1400 sf ranch with a fantastic full finished walkout basement... same quality as the GLA, and call it GLA, then proceed to compare it to 2800 sf homes. It's not a 2 story. It's a 1400 sf ranch with a finished basement that you would compare with other 1400 sf GLA foundations. Calling it GLA doesn't mean it has more value. Below Grade can have the same $/sf as GLA. But you have to compare apples to apples in design/function

If I run MARS regression on a neighborhood and it says there is no difference. There is no difference. PERIOD. I may make a separation if GSE or other guidelines require it, but that is just a formality.

 

[residentialguy]

If I run MARS regression on a neighborhood and it says there is no difference. There is no difference. PERIOD. I may make a separation if GSE or other guidelines require it, but that is just a formality.

It's wrong. Yes the sf adjustment may be the same but there is no comparison. Completely different buyers. A gas station may sell for the same $/sf as a similar sized ranch, but you don't use it as a comp. Comp means that it is similar... it's similarly comparable to the subject, attracting the same buyers.

 

[KenAZ]

It's wrong. Yes the sf adjustment may be the same but there is no comparison. Completely different buyers. A gas station may sell for the same $/sf as a similar sized ranch, but you don't use it as a comp. Comp means that it is similar... it's similarly comparable to the subject, attracting the same buyers.

In the SW USA, basements are rare, but when a home has a finished basement, they sell like hotcakes. Much different than snowy areas, where most of the basements are unfinished and used mostly for the furnace. basement homes typically sell for more than a two story home of the same size.

I went to a convention where the chief appraisers from VA, FHA and FNMA did a panel discussion. I tried to tell them about how the basement regulations do not fit in the SW. They should be counted as livable. Of cpourse they disageed, because they do not understand anything that is different than the NW USA.

I also asked them what to do when the MLS and Tax records include the basement in the GLA, and it is impossible to determine the basement size on comps. All three of them said "Guess"

Does ANSI allow us to guess the basement size, or maybe even the GLA?

 

[residentialguy]

In the SW USA, basements are rare, but when a home has a finished basement, they sell like hotcakes. Much different than snowy areas, where most of the basements are unfinished and used mostly for the furnace. basement homes typically sell for more than a two story home of the same size.

I went to a convention where the chief appraisers from VA, FHA and FNMA did a panel discussion. I tried to tell them about how the basement regulations do not fit in the SW. They should be counted as livable. Of cpourse they disageed, because they do not understand anything that is different than the NW USA.

I also asked them what to do when the MLS and Tax records include the basement in the GLA, and it is impossible to determine the basement size on comps. All three of them said "Guess"

Does ANSI allow us to guess the basement size, or maybe even the GLA?

Hey Ken
Ltns.
I hate the term GLA. You can live in any basement that is finished. It's just meant to show the function of the design for comparability. Below grade is just an extra area below the main living level that can be finished. I've done $10M homes with incredible 14' lower level rooms that were similar to the house above. But you don't call it GLA. It's still functions as an basement, as elaborate as it may be. You can give it any $/sf value you want. Calling it a basement doesn't affect value. But it keeps you comparing oranges to oranges. It's a 3000 GLA ranch with a 3000 sf finished basement that you compare to other 3000 sf GLA ranches. It's not a 6000sf 2 story. 2 story homes are completely different type of homes. You can deviate from ansi...It may be a walk up ranch completely on grade or it may be built into a mountain with no GLA, per ansi... that's where you deviate from ansi. It's a ranch with a finished basement, regardless of where the dirt level hits it.

 

[Mejappz]

All three of them said "Guess"

And there you have it.; the people running this industry to the ground.

 

[djd09]

i like rounding. it is part of the definition of appraisal.

what is that exception code?

 

[andrew81]

Hey Ken
Ltns.
I hate the term GLA. You can live in any basement that is finished. It's just meant to show the function of the design for comparability. Below grade is just an extra area below the main living level that can be finished. I've done $10M homes with incredible 14' lower level rooms that were similar to the house above. But you don't call it GLA. It's still functions as an basement, as elaborate as it may be. You can give it any $/sf value you want. Calling it a basement doesn't affect value. But it keeps you comparing oranges to oranges. It's a 3000 GLA ranch with a 3000 sf finished basement that you compare to other 3000 sf GLA ranches. It's not a 6000sf 2 story. 2 story homes are completely different type of homes. You can deviate from ansi...It may be a walk up ranch completely on grade or it may be built into a mountain with no GLA, per ansi... that's where you deviate from ansi. It's a ranch with a finished basement, regardless of where the dirt level hits it.

There are Tri-level homes in my market that have 2 levels below grade fully finished and used as livable space. The most unique one I did was built into a hillside with 1 level above grade looking from the front this looks like a common house, but from the rear of the home was open 3 levels and the basement has a full sized half court gymnasium.
https://appraisersforum.com/forums/...ve-seen-while-appraising.223269/#post-2913646

 

[residentialguy]

There are Tri-level homes in my market that have 2 levels below grade fully finished and used as livable space. The most unique one I did was built into a hillside with 1 level above grade looking from the front this looks like a common house, but from the rear of the home was open 3 levels and the basement has a full sized half court gymnasium.
https://appraisersforum.com/forums/...ve-seen-while-appraising.223269/#post-2913646

I've done so many splits.. 4 levels, 3 levels, split foyers... they are similar to a ranch (or rambler). GLA will typically be the foundation size, which consists of the kitchen level and anything above it. All the areas below the kitchen are basement, which could be finished.

 

[andrew81]

I've done so many splits.. 4 levels, 3 levels, split foyers... they are similar to a ranch (or rambler). GLA will typically be the foundation size, which consists of the kitchen level and anything above it. All the areas below the kitchen are basement, which could be finished.

They are everywhere around here and most homeowners don't understand that the levels are below-grade, but can be valued similar to the above-grade. They just hear basement and think bad appraiser.

 

[residentialguy]

They are everywhere around here and most homeowners don't understand that the levels are below-grade, but can be valued similar to the above-grade. They just hear basement and think bad appraiser.

I know. It's especially irritating when a real estate agents say that kind of crap.