Another basement question and a missed bathroom on appraisal

[Paul Isolda]

If there was no difference between "daylight basement rooms" and the "upper living area", the name would not have basement in it and you would not need to call it something different anyway because you would just call them all rooms. The reality is, most buyers see a difference between a room in a basement and a room above the basement level. Sometimes the value is the same or very close for the finished basement, depending on the local market. Call it what it is a treat it the way buyers treat it and you can't go wrong.

 

[Webbed Feet]

LOL ! You just answered your own question!

What is the rationale for considering the day light basement rooms differently than the upper living area? Personally I consider a daylight basement to be superior to a regular two story home. The daylight basement area is easier to heat and stays cooler in the summer. The other advantage is that both floors exit to natural grade. In an emergency you don't have to jump out the second story window. It sounds like a rule some bureaucrat came up with and everyone decided to fall in place.

So therefore you would not personally compare a daylight ranch style home to a two-level all above grade home! Consider your own statement. Now you know why appraisers generally do not, and often should not, make any such comparison so therefore treat the daylight ranch's lower level differently than they would treat a two story home's lower level. They are not the same.

You forget we also sometimes consider something called a Cost Approach. The construction costs of a basement are not the same as the lower level of a two story home. By your own words, you just said that you don't even consider them to be the same. You can't say that in this thread and then say in a different thread you think they are the same. That is what you have done, argued it both ways.

 

[ilovemaui]

So therefore you would not personally compare a daylight ranch style home to a two-level all above grade home! Consider your own statement. Now you know why appraisers generally do not, and often should not, make any such comparison so therefore treat the daylight ranche's lower level differently than they would treat a two story home's lower level. They are not the same.

You forget we also sometimes consider something called a Cost Approach. The construction costs of a basement are not the same as the lower level of a two story home. By your own words, you just said that you don't even consider them to be the same. You can't say that in this thread and then say in a different thread you think they are the same. That is what you have done, argued it both ways.

I'm not saying they are any different. I believe they should be treated the same in terms of contribution to the square footage or room count. Especially if that is the way the home was built. Our "basement" and I use that term only because that appears to be the nomenclature, was finished when the home was built. It wasn't an after thought and the same materials were used throughout.

In terms of construction costs I can tell you from experience it costs more to pour a 10-foot concrete wall then it does to frame and side a wall. I have designed many of them and calc'd the sheer calcs just for that very reason. That is is exactly why builders use pony walls whenever possible. Pony walls are much cheaper to construct than concrete. Concrete requires excavation, reinforcing, forms, etc. The foundation wall has to be constructed to withstand the earth forces.

Our "basement" has one concrete wall which is also wood framed on the interior with sheet rock. It looks exactly the same as the upper level. It has almost as many windows as the upper level. The only difference is the little bathroom windows.

The home has been appraised twice since I've owned it and in both cases they listed the total square footage and all the rooms.

 

[Paul Isolda]

So because 2 appraisers did it wrong before, it should always be done that way because you like it?

 

[Deleted member 128537]

Below grade construction is less than above grade GLA. How the market reacts to a walkout basement will vary. However based upon accepted appraisal practice guided by Fannie Mae supplemental standards the basement is the basement and is generally not considered Gross Living Area. Having said that I give equal value to bedrooms below grade with good finish with walkout basement or daylight basement as I do room count adjustments above grade. Why do people build split ranches??? If the home is functioning as a two story home then it has the same functional utility. But technically by Fannie standards you have a 1800 sq' home. We don't make the rules. We just follow them.