Basement or not? Another ANSI conundrum. Visuals included.....

[J Grant]

You can't seem to see the forest for the trees. They write: "Fannie Mae will monitor for inappropriate use of exceptions (i.e., using methods other than the ANSI standard for homes that have typical above-grade square footage)." I agree!!! It is inappropriate to make an exception for typical! Appraisers should not use exceptions on typical homes.... it is used on atypical homes so that it reflects the way that kind of home is measured and functions. Appraisers were taking typical below grade and making it an exception to be called GLA. You can't do that. Of course value pushers loved to do that. If I have a 40x30 ranch built into a hill on a corner, that main level is still GLA. It is atypical and falls under exception. It will be compared equally to other 40x30 ranches' 1200 sq of GLA... and if that hill affected the value, then adjust for it on a line. Conversely, if I have a 40x30 2 level split foyer that the basement is sitting on grade, that is atypical and it would be an exception... you compared to other typical 40x30 splits... top 1200sf level being the GLA. If there is any market variance for the 2 ft basement grade, then make a single line adjustment.

Does it say to use the exception on atypical homes? . It says to use it in cases such as berm homes when none of the dwelling sf is above ground and therefore, it is not possible to use ANSI

A home might be atypical for an area, but if it can be measured using ANSI, such as a split level where part of the lower level is a basement partly below grade, then use ANSI, and explain why the comps are what they are..

The valuations of the properties are a different phase of the appraisal and not part of using ANSI to measure the subject. If market evidence is a partly below-grade basement is worth as much to buyers as above-grade SF, then explain that., and show it in comps and in prices of houses with part below-grade areas.

 

[residentialguy]

Nope. It does not make sense to throw a basement functioning level into GLA or throw GLA into basement and then try to adjust your way back to normal. You start by putting to normal, then no adjustments are necessary. Often you comparing other styles. E.g. Use a similar foundation ranch style to a similar foundation split. You count the basement level in a split as GLA, now you use a much larger foundation ranch. No! Stop putting so much importance to the dirt level... it has very little contribution. Compare them house style & function. The appraisal will be clean with minimal adjustments, easy to understand and defend, and will reflect the market.

 

[Dublin ohio]

Stop putting so much importance to the dirt level

Tell that to ANSI and the GSEs

 

[residentialguy]

Tell that to ANSI and the GSEs

They don't have a problem with it.

 

[Dublin ohio]

They don't have a problem with it.

Source?

 

[residentialguy]

Source?

Show me where they have

 

[TerryRohrer]

Source?

The Manual by Fernando!