Basement Question

[MarkRichmond]

Hi, as some of you know, I am an inexperienced appraiser and wanted to ask a question about an appraisal I am doing.

The house is a ranch that has a one car garage in the basement. My thought was to count the basement as partial and subtract out the garage area and then also count a one car garage. Is this proper or am I doing it wrong?

Thanks,

Mark

 

[Ruth Langkawel]

Hi Mark,

You're right about how to handle this. The garage that you describe is known as a "built-in garage", and it's square footage should be reported and costed out as such. The remainder of the basement level is reported and costed out as basement.

I'm hoping that you are working under a mentor. They can get overwhelmed with the pressures of answering questions for a trainee while trying to meet the quick turn demands of their clients. You can certainly take some of the pressure off your mentor by posting some of your questions here.

 

[Mountain Man]

Sounds like you have answered your own question correctly, as long as you are not adding the garage area twice. You can NOT include the garage area in your basement adjustment, then have an adjustment for a one car garage. That is giving the garage value twice in the market grid. Just be sure to consider functional utility in your market area.
Mell.

 

[airphoto]

Mark,

Don't lose sight of the fact that you now have a partial basement .. less than a full basement, thus you've lost basement value.

In this instance, I'd add $1,000 under "partial basement" to bring it up to a full basement. Being a walk-out basement, though (which I value differently from a full basement) you've got that to consider, as well - say net to 'zero' presuming your subject doesn't have a walk-out basement .. and presuming only a one-car built-in garage.

Now list 'one-car built-in' on the garage line and adjust to your subject ..

Make sense?

 

[Mountain Man]

Bill,
8O Are you trying to say that there are diminishing returns with a larger basement, so a smaller basement commands a larger adjustment per SF since the garage area is now removed, and will be adjusted later in the market grid? That makes since to me, but I am not sure that I am reading you correctly. :? I think it is just me as I had a bad golf day. Shot 103 :evil:
Mell.