Berm Home Analysis tips/opinions?

[PrincessLeia]

Hello All,

I'd like your opinions on what my peers would do in this case: I got an assignment from the VA for a Berm home. It turns out, it's a 2-story Berm home, built into a hillside on 10 acres bordering an interstate [laughs hysterically]. I have a 1 story ranch style Berm home about 30 miles away that just closed (that I also appraised) and 5 sales 3 counties away which I wont grid due to distance (100+ miles) but will refer to to cite their commonality/general market acceptance.

Here's my question:

Where I'm at in Wyoming, Basements & finished/partially finished basements are highly common. Berm homes can sometimes be found. I have NEVER had a 2-story berm home. Top level is 1613sf, bottom level is 2,076sf, of which one large 800sf+ room is only partially finished (more like a basement than GLA). Total GBA 3,689sf which is highly uncommon to be all one level or all GLA for properties of this age. To further complicate matters, kitchen/dining room are on lower level.

For Berm homes, I have typically labeled the GBA as GLA and made explanations why. In this case, I was considering splitting Subject's GBA by a "first floor" and a "basement" (since lower level has area with only partial finish which is highly common to basements in Wyoming.)

I do think the typical buyer might view the property like this. But with the kitchen/dining room on the lower level, maybe not. All of this is arbitrary because 100% of subject's GBA is technically is underground on at least one side, if not 3. If I don't split the subject's GBA by GLA + Basement I run into 2 issues:

1) trying to bracket subject's 3,689sf as GLA which is not common as GLA, only typically as GBA with first floor + basement) and
2) trying to adjust for partially finished lower level which isn't easily possible as GLA.

What say my peers? Is there anything to stop me from arbitrarily splitting subject's GBA into GLA / Basement, purely for the purposes of comparison?

FYI... Pic attached. Yes, upper level on top left is below ground on 3 sides.

 

[glenn walker]

I

Hello All,

I'd like your opinions on what my peers would do in this case: I got an assignment from the VA for a Berm home. It turns out, it's a 2-story Berm home, built into a hillside on 10 acres bordering an interstate [laughs hysterically]. I have a 1 story ranch style Berm home about 30 miles away that just closed (that I also appraised) and 5 sales 3 counties away which I wont grid due to distance (100+ miles) but will refer to to cite their commonality/general market acceptance.

Here's my question:

Where I'm at in Wyoming, Basements & finished/partially finished basements are highly common. Berm homes can sometimes be found. I have NEVER had a 2-story berm home. Top level is 1613sf, bottom level is 2,076sf, of which one large 800sf+ room is only partially finished (more like a basement than GLA). Total GBA 3,689sf which is highly uncommon to be all one level or all GLA for properties of this age. To further complicate matters, kitchen/dining room are on lower level.

For Berm homes, I have typically labeled the GBA as GLA and made explanations why. In this case, I was considering splitting Subject's GBA by a "first floor" and a "basement" (since lower level has area with only partial finish which is highly common to basements in Wyoming.)

I do think the typical buyer might view the property like this. But with the kitchen/dining room on the lower level, maybe not. All of this is arbitrary because 100% of subject's GBA is technically is underground on at least one side, if not 3. If I don't split the subject's GBA by GLA + Basement I run into 2 issues:

1) trying to bracket subject's 3,689sf as GLA which is not common as GLA, only typically as GBA with first floor + basement) and
2) trying to adjust for partially finished lower level which isn't easily possible as GLA.

What say my peers? Is there anything to stop me from arbitrarily splitting subject's GBA into GLA / Basement, purely for the purposes of comparison?

FYI... Pic attached. Yes, upper level on top left is below ground on 3 sides.

I would say you can do it anyway that you believe will produce the most credible results and all rules get thrown out the window. Personally I would have invoked incompetency : ) LMAO

 

[Alsie35]

Hello All,

I'd like your opinions on what my peers would do in this case: I got an assignment from the VA for a Berm home. It turns out, it's a 2-story Berm home, built into a hillside on 10 acres bordering an interstate [laughs hysterically]. I have a 1 story ranch style Berm home about 30 miles away that just closed (that I also appraised) and 5 sales 3 counties away which I wont grid due to distance (100+ miles) but will refer to to cite their commonality/general market acceptance.

Here's my question:

Where I'm at in Wyoming, Basements & finished/partially finished basements are highly common. Berm homes can sometimes be found. I have NEVER had a 2-story berm home. Top level is 1613sf, bottom level is 2,076sf, of which one large 800sf+ room is only partially finished (more like a basement than GLA). Total GBA 3,689sf which is highly uncommon to be all one level or all GLA for properties of this age. To further complicate matters, kitchen/dining room are on lower level.

For Berm homes, I have typically labeled the GBA as GLA and made explanations why. In this case, I was considering splitting Subject's GBA by a "first floor" and a "basement" (since lower level has area with only partial finish which is highly common to basements in Wyoming.)

I do think the typical buyer might view the property like this. But with the kitchen/dining room on the lower level, maybe not. All of this is arbitrary because 100% of subject's GBA is technically is underground on at least one side, if not 3. If I don't split the subject's GBA by GLA + Basement I run into 2 issues:

1) trying to bracket subject's 3,689sf as GLA which is not common as GLA, only typically as GBA with first floor + basement) and
2) trying to adjust for partially finished lower level which isn't easily possible as GLA.

What say my peers? Is there anything to stop me from arbitrarily splitting subject's GBA into GLA / Basement, purely for the purposes of comparison?

FYI... Pic attached. Yes, upper level on top left is below ground on 3 sides.

I have to agree with Glenn on this one. Rules = Window. I've had a few VA doozies including a rural barn weirdly converted into a second home across the lot from the main home with a high tension power line easement running right down the center of the property between them being probably the worst one. Nothing this atypical though.

I can't see the photo you attached, but I think you are on the right track. Just try to bracket as many of the features as you can. I think the GLA/Basement semantics are supportable as you laid them out. Most important question: Did they tell you what the value is that they are looking for (as the VA orders often do)? If it looks like its gonna make value I wouldn't worry too much, just do whatever you can to support all of your assumptions/adjustments.

Yikes!

 

[lostinthezone]

Tough one. I would go back to basics. What is the function and utility of that lower level as compared to other construction and the rest of the dwelling? If it operates as more of a basement layout and the construction quality is more of what you see in a basement, and if its different than the top level then I would hang my hat on that as far as how I would define it. If the quality of construction is similar to above grade finish and there is no difference in construction between the two levels, then I would be more inclined to treat them both as GLA, with the lower level just happening to have some area that was not finished. If you end up calling it a basement, then you'll have to deal with the kitchen in the basement issue. In the couple of times I've had to deal with that, the basements were mostly out of the ground and I was able to make the conclusion that the value and marketability was not affected based on the available natural light and by looking at past sales. As others have said, you're just going to have to throw a bunch of stuff at it and hopefully enough pieces stick to make a conclusion.

 

[Terrel L. Shields]

VA - you can't turn it down I suppose and I kinda like it. I would use the one berm as evidence of market acceptance then I would use a 2 story comp with basement if possible and then tippy toe past the notion it is a unique 2 story berm home....They might hang me over it but not with my own rope.

 

[sputnam]

Use the sales of bermed dwellings you have as one-half of pairs to extract market reaction on a percentage basis. Then use the percent to derive your adjustments... if any. I probably wouldn't use them as direct comparables since it is.. as it always has been... Location, Location, Location.