1 Story or 2?

[Terrel L. Shields]

One story log w walkout finished basement? two story log? Would you appraise it as one-story or two-story?

 

[Thomas Fiehler]

One story with basement. (Was this a trick question?)

 

[Vermonter]

One story with basement. (Was this a trick question?)

Ditto.

Don't think basements are common in AR.

 

[Terrel L. Shields]

It's Oklahoma. Basements are pretty common in Lake country but this one is actually in a very rural area miles from the lakes. The listing has a sketch from a couple of OK appraisers who called it "two story" and the GLA was 3,400 SF.... The assessor calls it "1 story" but shows 2,960 SF ? It clearly looks like it is a full basement under a one story log home with an attached garage that isn't over any basement level. The dimensions are calculating to 1700± from Google Earth... All the bedrooms are upper level. The fin basement has a utility, bath, rec room and storage rooms.
The Realtor remarked that "It looks one story from the road."

I would call it 1 story log (after all there is no log siding on the lower level) with finished basement. Apparently the appraisers didn't break out the two levels although that's not a biggie except I wonder where they got comps with basements outside of going "to the lakes" and in doing so they will probably incorporate a "lake effect" value to the GLA.

The way it sold however, makes the place seem "cheap". It has 51 acres and a 1200 SF insulated shop building and the home is 7 years old. SP is $246,000 and on the market for nearly 1 year. Also, perhaps an effect of having a spanking new poultry farm across the road...6 houses 55' x 600' long.

I would love to see the rest of the appraisal and see what MV they concluded. I am trying to find out if the sellers were under pressure to get rid of it.

 

[Mike Kennedy]

1 Story GLA, full basement/ finished - segregated. IF the market pays the same price for each level, so be it, that does not magically make a 1,000sf GLA, 1 story home a 2 story dwelling with 2,000sf GLA.

That is THE #1 contributory factor in the intentionally fraudulent 2003-2008 "Bubble" - in this state. It was also done on 2 story Colonials and Contemporary style homes with finished basements as well.

Researching a luxury market for several litigation cases right now. The "Wizzes" waved their magic wands and suddenly 4,000sf homes became 6,000sf homes at the same price s/f. The majority of buyers came from NYC, Long Island, CT, and NJ - the majority of the appraisers used came from outside the local market, were handed "comparables" and did their Pavlovian tricks.

Aftermath - True 4,000sf - 6,,000sf+ above GLA homes have held most of their MV with minor decreases in value attributed to the Wall Street fandango. a significant multitude of Resale Expired Listings, Withdrawn listings, a handful of sales based on the actual Above Grade GLA on homes sold in the 900-2mill range - experiencing repetitive downward adjustments with some selling in the low 700k range with revised listings currently reporting the proper above grade GLA and finished basements separately at 40-50% of their original sale prices. A rash of foreclosures by original buyers unable to refinance, a slew of forensic review appraisals indicated they bought "fat pigs in a poke" on assurances by Listing and Selling Agents. The calls from my Bankruptcy and Divorce Attorney-clients began last year - dual assignments Retro Review and Current MV appraisals.

The weeping and gnashing of teeth in Ree-lator & Duhpraiser world can be heard from miles away. The Attorneys are "chomping at the bit" ........

 

[Terrel L. Shields]

It has been my experience that a lake side home built such as this will have little discount to the lower level...particularly as a vacation or summer home. But for almost everywhere else in our region and this example in particular, where it is miles from the lake, you clearly can (and thus imho should) segregate the two areas and they clearly contribute separate values.

You would think there isn't going to be much difference, but generally it is a significant % change in SF adjustments between lower basement finished and upper level GLA.

 

[Donna Quixote]

One story with walk-out basement. Around here, what is finished and exposed in a walk-out is included in above ground living space. Only the part that is fully exposed counts as GLA

 

[Rlong]

It's hard to buy the "local convention" calling it a "two story log" or that the lower level is of similar value when I'm looking at a conrete wall wih no windows.

1 story lincoln logs, with walkout basement. Although it does not matter as long as you treat all the properties in the report the same. (And since it don't mattter why not report it conventionally as FNMA prefers.

Bob in CO (with many of these)

 

[sputnam]

Definitely basement.

 

[Mike Garrett RAA]

1 story (rancher) with walkout basement level. IN MY MARKET the lower level would not be considered in the GLA but it would, most likely, be adjusted at the same rate as the GLA. I would try to find other log homes so that I wouldn't need to adjust for a quality rating. Have found, in my market, a walkout on the lower level is worth as much as $15,000 but more typically $8,000 to $10,000. When added to the basement and basement finish it comes very close to the same value as the above grade. Cost is another matter but since I don't do cost approaches...who cares?