Bedroom & Bathroom Count in Apprisal Rpt

[Tim Berry]

I have a finished basement that is 70% above grade level and 30% below. In the basement I have a number of rooms of which one of them is a large 300 sq ft bedroom with a window, walk in closet, A/C, electrical outlets etc, basically everything required by code (70% above grade). I also have a separate full bathroom in the basement that is 100% above grade level.

On the Uniform Residential Appraisal report it has the following sections I would like help with:

1) Above Grade Room Count and Gross Living Area.
-Do you include the bedroom and bathroom in the basement as described above in the count?
-Should the gross living area include 70% of the basement that is above grade level?

2) Basement & Finished Rooms Below Grade Level
- If you included any of the above in the above grade room count and gross living area do you back out this square footage here to avoid double counting it?

This has a significant impact on the valuation as the value per square foot for above grade gross living area is much higher than a finished basement square footage.

Thanks

 

[Mr Rex]

IF you want the strict ANSI interpretation, ALL of the sf on a floor that has ANY portion of it below grade is considered below grade.

I will quiz you this, in your scenario, where does it stop being below grade? In the case of a full basement with walk out to grade all across the back, why not just call it all above grade, since if the interior walls weren't there you could look out at "above grade". It doesn't work that way obviously. So, I would check to see if your state has measurement standards and if so follow them. Many folks use ANSI because it is a nationally recognized standard when their state does not have a particular standard.

 

[Tony Blackburn]

FNMA's guideline is similar to what Mike quotes from ANSI. From FNMA's 2002 Selling Guide: XI, 405.06: Gross Living Area (06/30/02) "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.
"

The proble comes when you try and analyze the comparables. You want to be consistent in comparing the subject to the comparables. How are you going to be able to tell if a comparable's "Basement is 60% above grade, or 70% above grade?

Stick to FNMA's guidelines and you won't go wrong.

 

[Ross (CO)]

At first I thought the basement at this house was a two-tiered basement.......with 70% of the basement floor area being about 7ft. higher than the other 30% of the basement floor area (which is about 7ft. lower), and some sort of stairway linking the basement with a sub-basement.

I would always ask a fundamental question.......where is the formal "front" door entrance to the house and where do the soles of my shoes go after I have crossed over the threshold of that doorway ? I let the soles of my shoes dictate what is above-grade and what is (so very) likely to be basement. Aside form the occasional "it depends" scenario......my shoes have never steered me wrong for perhaps 97% of the properties that I might have visited and observed. Is it possible that one goes up a flight of 5 to 6 to 7 steps from the front yard or driveway before they actually reach that front door ? How many total interior levels does this house have ?

It is abundantly accepted in most markets that a finished area for use as a bedroom and accompanied by a nearby bathroom CAN co-exist within a basement level of a house, be relegated TO the basement level of that house, and allowing one to therefore disregard whether or not there is fenestration allowing direct natural light to enter that bedroom and the bathroom. The entry of unobstructed natural light through a window does NOT dictate a different naming for respective levels of a structure. It is even possible for basement levels to have a higher $/sf for finish and features than the level above.

One other alternative you might have here is to define this house as being a 2-story....on a slab....with formal entry from outside being into the upper level of that structure. Your client will likely struggle with acknowledging one's entry into the upper level of a 2-story yet some might rationalize it that way. I do NOT know your market nor that neighborhood where the subject is located. So long as you have at least 2 of 3 comps that are very much like your subject......you might be able to disclose and explain and provide a well-reasoned opinion of value.

 

[Marcia Langley]

This has a significant impact on the valuation as the value per square foot for above grade gross living area is much higher than a finished basement square footage.

Thanks

Tim,

I agree with the others that the ANSI or Fannie standards should be followed.

As the others have said, the most important part is to make sure your comparables have the same configuration. The above quote shows that you already understand why.

Your subject appears to have a walkout basement. You can't include that in GLA and then compare it to non-basement houses with the same GLA.