Basement or split level

[Thomas Fiehler]

If any part of the level is below grade (and it is) then it's a basement.

 

[JM2187]

Fannie Mae Selling Guide XI, 405.05: Gross Living Area (11/01/05)

The most common comparison for one-family properties (including units in PUD, condominium, or cooperative projects) is above-grade gross living area. The appraiser must be consistent when he or she calculates and reports the finished above-grade room count and the square feet of gross living area that is above-grade. For units in condominium or cooperative projects, the appraiser should use interior perimeter unit dimensions to calculate the gross living area. In all other instances, the appraiser should use the exterior building dimensions per floor to calculate the above-grade gross living area of a property. Only finished above-grade areas should be used—garages and basements (including those that are partially above-grade) should not be included. We consider a level to be below-grade if any portion of it is below-grade—regardless of the quality of its “finish” or the window area of any room. Therefore, a walk-out basement with finished rooms would not be included in the above-grade room count.

Rooms that are not included in the above-grade room count may add substantially to the value of a property—particularly when the quality of the “finish” is high. For that reason, the appraiser should report the basement or other partially below-grade areas separately and make appropriate adjustments for them on the “basement and finished areas below-grade” line in the “sales comparison analysis” grid. 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 comparisons. However, in such instances, he or she must explain the reason for the deviation and clearly describe the comparisons that were made.

 

[Ion Caza]

In my view this is a split level, so I would consider not a basement but a lower level and adjust it accordingly. I would compare this with split levels.

 

[JM2187]

Good idea, no reason to pay attention to guidelines when you can just make it up on your own...

 

[Mr Rex]

Joe, I'm sure your review folks would catch it before the client got it.:new_smile-l:

 

[Mike Kennedy]

The Intentional Culprit:


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 comparisons.

 

[Marcia Langley]

Basements not typical in market area.

Donny,

Below grade areas must be in the below grade portion of your grid. This is common sense and a GSE guideline.

Just remember apples to apples. If you can find similar houses for all your comps, the differences could be accounted for, either way. But in no case should you add both levels into the above grade GLA and then compare that to houses that are all above grade.

Not only is this the most credible approach, it is also the easiest approach when your comps are not similar. You can isolate the differences in value between above and below grade.

 

[tweaver]

Above/below grade is a technical issue

Above/below grade is a technical issue. Describe the subject technically correct and explain any local customs as to how this is perceived. Good (similar) comps will remove any questions and the point is moot. Lacking truly good comparables with the same above/below grade makeup, bracket the subject with both similar, split-level, designs and typical one-level homes with basement areas. Dont dare trust MLS. At a minimum, utilize assessor records to determine/estimate above/below grade s.f. for your comps (minus garage, etc.). Begin your comparison IGNORING the below grade areas and analyze the trend of adjusted prices. Now include and analyze the below grade areas. Let the data tell you!

 

[Ron D. in NWA]

If any part of the level is below grade (and it is) then it's a basement.

Thomas,
What if it is not below grade? I saw one today for a friend who was wanting some advice on what to fix up before selling. Their's has 2 levels, like a split, with the bottom level completely finished, 2 exterior entrys, one in front,one in back, windows, central heated and cooled from the same units as above, but it does not have access from the level above. They are using the lower level as a office and business work area so the no access from above serves them well. The county calls it basement but the lower level living area is at ground level and nowhere below. They had an appraisal from when they bought it that was done by a CR who called it GLA, but have been told since then it wasn't. Just wondered how you all would approach this.

 

[Marcia Langley]

Ron,

If there is no part of the lower level that is below grade then the entire building is above grade.

Since there is no interior access between levels then the GLA cannot be combined. One level would be GLA and the other level would be described as some other type of amenity, just not a basement. "Ground Level Space" might work, or "Office Space" or "Finished Storage Area".

As far as the grid goes, I'd put it on a blank line at the bottom of the grid same as I would other unusual amenities. Unique items can't be fully explained in the grid itself, the burden for that is in the comments.