Basement or split level

[Carnivore]

Ron D.

The point of my post is that this thread has jumped to reporting issues before acually indentifying and solving the appraisal problem.

Would this be considered as curable(incurable) functional obsolesence?

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functional utility
The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards; the efficiency of a building's use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms.

functional inutilityImpairment of the functional capacity of a property or building according to market tastes and standards; equivalent to functional obsolescence because ongoing change renders layouts and features obsolete.


functional obsolescenceAn element of depreciation resulting from deficiencies or superadequacies in the structure. See also curable functional obsolescence; incurable functional obsolescence.


curable functional obsolescence
An element of depreciation; a curable defect caused by a flaw in the structure, materials, or design.


incurable functional obsolescence
An element of depreciation; a defect caused by a deficiency or superadequacy in the structure, materials, or design, which cannot be practically or economically corrected.

 

[Carnivore]

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

Apprently you had a change of mind since you made the post below.

It's obviously below grade, as such if you are going to include it in the GLA most underwriters will require similar properties with the same setup.

As you've indicated this is atypical, I would recommend treating it as such, best option may be to just add contributory value unless you have market data that shows this adds signficant value. Underwriter may ask about permits/zoning compliance as well, if it was done recently.

but on second thought a guideline is just that, it is not a requirement.

Although I dont know for sure, I would bet that your AMC appraisal order forms never specifically say to the appraiser that the report is destined for Fannie Mae(or state that fannie mae guidelines are to be the guiding light)!

If it does not, then the appraiser is free to just follow USPAP and local practice.

 

[TXCBoy36]

Here in Colorado, that type of home would fit right in....lol. However, being from Texas originally, you are correct. Homes with Basements are very few and far between. In this case, I would call the home a Ranch with a Basement. The basement would not be considered part of the original GLA and then adjusted for a reduced PSF. I would not use comps that are similar in entire square footage, since part of your sq footage is below grade and not typically considered GLA.

JC

 

[Mike Garrett RAA]

IN MY MARKET it is a rancher with walk-out basement. Quite common and desirable floor plan. Sometimes the basement level works out to about the same as the main level if you consider the square footage, finish, and the walk-out together. I like to fully explain that in my comments.

 

[Ray Miller]

In this area they are common. Raised Ranch with part finished basement or part finished below grade. Not equal to above grade value but some value for the part that is finished. Walk out will ad a bit of value. But then you have no garage and that will take value away, unless they have built a detached one.

Got to be real careful about what you call those here in Wisconsin. A MAI reviewer on a review of one of my appraisals for the state call a similar subject like that a two story on a slab, the other reviewer for the state has now called it a bi-level. I am sticking with a Raised Ranch, we will see what the judge calls it in a bit. Two CG MAI that are calling it something different. Guess I am worng twice.

 

[Mike Garrett RAA]

Most of ours will have an attached 2 or 3 car garage.