1025 Basement Description

[Muchacho]

Thanks in advance for any comments and insights. I'm curious as to how other appraisers fill out the 1025 form when it comes to the "basement description" line in the sales comp approach.

I have a duplex that is using a partial basement area as part of one of the units. I included all sq ft of the duplex on the GBA line - and then on the basement description line I included the sq ft of the basement - with no adjustments. The UW sees this as counting it double and wants to know why I did that.

I can explain the GBA - but am just wondering if other appraisers include the sq ft in the basement description line or "rented" or what. Thanks!

 

[AlwaysLearning]

Thanks in advance for any comments and insights. I'm curious as to how other appraisers fill out the 1025 form when it comes to the "basement description" line in the sales comp approach.

I have a duplex that is using a partial basement area as part of one of the units. I included all sq ft of the duplex on the GBA line - and then on the basement description line I included the sq ft of the basement - with no adjustments. The UW sees this as counting it double and wants to know why I did that.

I can explain the GBA - but am just wondering if other appraisers include the sq ft in the basement description line or "rented" or what. Thanks!

There should be no problem if you are doing this as the following example
If the area below grade is 1000 sf and consists of
- finished area of 350 sf (and integral with the 1st floor unit)
- unfinished area of 650 sf
then include 350 sf in the total GBA and report the basement as 650 sf (or partial basement)

Certainly you could keep the total above-grade and below-grade areas separately (which does not fit the definition of GBA but Fannie will accept)

I do not believe Fannie really cares how you do it. The only thing you must do is be consistent (describing the subject and comparables)

 

[Terrel L. Shields]

"Gross Building Area" is typically only the footprint of the building...

Segregate your basement out of the GBA

 

[AlwaysLearning]

"Gross Building Area" is typically only the footprint of the building...

Says who?

Segregate your basement out of the GBA

This contradicts the AI definition of Gross Building Area (GBA)

 

[Mike Kennedy]

Gross Building Area
Gross building area:
• is the total finished area including any interior common areas, such as stairways and hallways of the improvements based on exterior measurements.

Part B, Origination Through Closing
Subpart 4, Underwriting Property
Chapter 1, Appraisal Guidelines, Appraisal Report Assessment
July 26, 2011
Printed copies may not be the most current version. For the most current version, go to the online version at
http://www.efanniemae.com/sf/guides/ssg/. 552

• is the most common comparison for two- to four-unit properties.
• must be consistently developed for the subject property and all comparables used in the appraisal.
• must include all finished above-grade and below-grade living areas, counting all interior common areas such as stairways, hallways, storage rooms, etc.
• cannot count exterior common areas such as open stairways.
Fannie Mae will accept the use of other comparisons for two- to four-unit properties (such as the total above-grade and below-grade areas) provided the appraiser:
• explains the reasons he or she did not use a gross building area comparison, and
• clearly describes the comparisons that were made.

 

[AlwaysLearning]

Accepting GSE assignment requires compliance with assignment conditions published. This would include Fannie description of GBA as 1025 is being used (per post #1)

 

[Terrel L. Shields]

I believe most industrials are measured using only the footprint measurement. Gov agencies require the basement multifamily buildings to be added to GBA. The person who is arguing that it is double dipping probably thinks that because of the statement I made. Many commercial buildings are based only on the footprint. BOMA has a standard for office space, multifamily, retail space etc. etc...

Again, segregate the value out for the client...otherwise you have a fight on your hands.

 

[Thomas Fiehler]

GBA is used for single family residences and GLA (which includes finished basements apts) in their total.

 

[AlwaysLearning]

GBA is used for single family residences and GLA (which includes finished basements apts) in their total.

GLA (above grade area only) is the most common comparison for one-unit properties

GBA (includes all finished above-grade and below-grade living areas) is the most common comparison for 2-4unit properties

 

[Webbed Feet]

GBA is used for single family residences and GLA (which includes finished basements apts) in their total.

After reading this I now have to go get more coffee ........