Berm Home Or Not?

[JR1972]

Just curious as to how the community would do this one. Appraisal is for a purchase and it is an in-house loan. The subject is a bermed home with a small second floor. The second floor is 600 sf and the first floor/basement is 1800 sf that is all completely finished and what I would call Q3/C3. Would you call it a bermed home with a second story or a 600 sf house with an 1800 sf basement? If bermed would you then include the first level as GLA and then adjust for design? My training stated that a bermed home did not have any GLA. So, I am just wondering how you would tackle this one? Thanks.

 

[Mark K]

In-house loan?

Bermed house with 600 SF upper level.
Include the 1800 s.f. as GLA.
If no berm comps (laughing) I'd adjust for design/appeal.

Your trainer that stated no GLA for bermed houses must have been a F/F form filler. In-house loans allow you to call it what it is, not what some guideline dictates; you actually get to use common sense.

 

[Terrel L. Shields]

you actually get to use common sense.

Are you sure that doesn't violate some rule?

 

[andrew81]

earth contact, 2400sf, 0sf basement

 

[residentialguy]

I agree with what Mark and Andrew said. The function of the home is a 1.5 story home on slab. 2,400 sf GLA and adjust for any ground level variances for the comps.
If you find a comp that is completely underground, adjust for the extra cost to mow the roof.

 

[JTip]

Q3/C3

Must be a REAL nice berm home.....

 

[Mark K]

I agree with what Mark and Andrew said. The function of the home is a 1.5 story home on slab. 2,400 sf GLA and adjust for any ground level variances for the comps.

C'mon, Man! Where's your consistency?

Didn't you say that its possible to have a basement that's completely above grade and now you say that you can have GLA below grade.

Make up your mind!

 

[Mike Garrett RAA]

It's hard to make chicken soup out of chicken poop. It is what it is. I wouldn't call the main level as basement with a good explanation of what you are dealing with.

 

[Mark K]

Must be a REAL nice berm home.....

Back in the day when 'everyone' was saying the world was running out of oil (Jimmy Carter days) some people built some VERY nice earth-bermed homes. There's 3 or 4 within about 10 miles of my office that I know of. I've gone thru 2 of them on realtor open houses; good quality, usually built into the side of a hill.

Whenever I'm presented with an offer to appraise one, I'm always too busy.

They generally sell for about the same, maybe a bit less, $/sf as conventional construction but take 2-3X longer to sell. Part of the problem selling is the buyers need an in-house lender.

About the same market appeal as a dome home; there a couple of those around here too.

 

[residentialguy]

C'mon, Man! Where's your consistency?

Didn't you say that its possible to have a basement that's completely above grade and now you say that you can have GLA below grade.

Make up your mind!

I'm consistently going against ANSI

Again, take away the dirt...what type of house does it function like? By ANSI standards, homes built on mountains are all below grade. That's just plain idiotic.