SFR with 2800 sf. finished basement. Reeeaaal nice. Excellent condition. 2 full baths at basement. I obviously cannot include the basement in my total GLA but can I include baths in TOTAL bathroom count? Thanks ahead for a response.
If I understand your question correctly the answer is NO! As you will notice on the grid of the front page of the URAR improvement section, adding bedrooms or bathrooms to the basement count do not add to the total. In the sales analysis grid for the subject you can give the value to basement finish as your market indicates.
In this market the square footage for the basement is estimated as any living area or potential living area below ground level. For example, in a split level or multi level home the third level down may be only one to two feet below grade (ground level) and finished off just as nicely as the upper levels, but will still be considered as below grade or basement area under these guidelines. The adjusted price for unfinished basement area is estimated between $5 to $7 dollars per square foot in medium priced homes and adjusted higher in larger custom homes. As to the finish, my adjustments are made on a room by room basis not percentage of finish because percentage estimate information provided on MLS by the sales agent has been found to be very unreliable. For example, a 1,300 square foot, medium priced home may have a family room, one bedroom, and bath in the full basement that is estimated at having a 90% finish while a matched pair comparable could have a family room, two bedrooms and a bath with an estimated finish of 80%. Making a percentage adjustment would require a minus adjustment to the comparable with 1 more finished bedroom. I would estimate an adjustment of $2,000 to $4,000 for the family room, $1,000 to $2,000 for each bedroom, and $1,000 to $2,000 for the bath which credits the functional utility of the finish and extracted market reaction. These adjustments would increase in the larger custom homes.
Now that is one area in my market!! You will need to use your market reaction to finished basements and adjust accordingly.
Mark....these are questions you should be asking your mentor if you don't know the answers. It depends on how he/she wants it done. In some geographic locations all of the baths are adjusted on the above grade line (I don't believe this to be correct but see it done that way from time to time)
I prefer to do it this way. For below grade you have two lines
Line 1: 2800SF 80% Finished (Fin)
Line 2: 5Rms,3Bdrm,2Ba
This way I can adjust for my raw below grade square footage on the first line (comparing size only) and on the second line I can compare for finished area (which usually isn't 100% of the basement area) including baths.
Might I suggest you invest in Henry Harrison's Illustrated Guide to the URAR. Forms & Worms, about $35. He also has guides for the condo form and small income form. You can order on line and have in a couple of days.
He explains how to fill out the report ....line by line. There are guidelines for Fannie Mae, FHA, and VA. It also includes 100s of standard comments. It also has the FNMA, HUD, and VA regulations for each and every entry.
Personally, I think it should be a bible for new appraisers doing form reports.