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Basement Home?

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Tim Hicks (Texas)

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Jan 15, 2002
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Certified Residential Appraiser
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Texas
We have very few basements here in TX, so tell me if this qualifies. Front view appears to be a one story home. But, the home is on a steep hill. The other three sides are full two story with a garage. They cut into the hill so that there is a giant retaining wall on the front two corners of the home with a steep drop so that the entire other three sides are not into the hill at all. So, would you consider it a basement home? That is what I consider it to be, but the listing agent and another appraiser say it is not.

I will try to post some pictures.
 

Mr Rex

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Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Earthworms don't crawl along the exterior of above grade walls.
 

Hamlet

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Aug 14, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
I'd say one story with finished? basement. Below grade wouldn't be GLA.
 

Tim Hicks (Texas)

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Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Earthworms don't crawl along the exterior of above grade walls.

Around here, appraisers are afraid to call it like it is. Number of walk out basement sales? 0-Zero. So, every appraiser before me has just called it a two story. As far as I am told. This will soon be canceled. If I don't deliver it first!
 

Jan Roseberry

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Joined
Sep 25, 2002
Professional Status
Certified Residential Appraiser
State
Ohio
I would not considered it a basement home, maybe a raised ranch or ranch w/ exposed basement.

Good day?
 

Mztk1

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Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
It depends first on your state. If you are in an ANSI Z765-2003 state, than it is a one story with a finished walk out basement. Otherwise, it depends on your market. The style is what I've usually called a hillside ranch. I have been in markets where the lower level is worth less than the top and it is considered a basemment, but I've also been in markets where you have similar comps and the area is viewed as living area and it competes equally with regular 2 story houses and other houses of competitive square footage.

If you are not in an ANSI state, and you have no other comps, it is a total judgement call that you will never please anyone with. In such a case you have to ask yourself, having been in it, Would the typical buyer view this area as part of and equal to in value as the main living area, or as something less than that.

It is is equal to living area, it is still a difficult call. Some would play it safe and not call it living area but give it the same amount of value it would have as living area under "basement". Others would find that a bit misleading because if it is given the same weigh as living area and is connected to the living area, then it is living area. If it comes down to your judgement, though, I don't think it matters, so long as you explain it well and it makes sense.
 

MS Rebel

Senior Member
Joined
Aug 27, 2004
Professional Status
Certified Residential Appraiser
State
Mississippi
"To ensure consistency in the sales comparison analysis, the appraiser generally should compare above grade areas to above grade areas and below grade areas to below grade areas. The appraiser may deviate from this approach if the style of the subject property or any of the comparables does not lend itself to such comparison. however, in such instances, he or she must explain the reason for the deviation and clearly describe the comparisons that were made. "

Fannie 405.06

It's up to you Daffy and the way your market recognizes the subject. My area does not recognize the below grade areas as a 'basement' - although in reality they are. It will be difficult to find adjustments if the local appraisers and realtors do not separate above and below grade.

I did one like this a few weeks ago and asked the same question.
 

CANative

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Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Just got back a couple of minutes ago from inspecting this one...
 
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