Bi-level Duplex

[Lee SW IL]

They ask for GBA on the 1025.

Should I subtract the lower level finished area?
Its 100% finished with equal finish as the rest of the home, but it is below grade. Lower level on each side as a full bath, family room and a bedroom.

I would never, ever include it on a 1004/URAR, so my 1st thought is no, but, I would like confirmation.

Thx

 

[John Wilson]

Sometimes I do, sometimes I don't, even on a 1004. It depends on how the assessors office has the GLA listed for split's and Bi's.

If they include it, then I include it. If not, well, you get the picture.

Either way it's consistancy that counts.

 

[larryhaskell]

Lee:

In our area the market views the basement area on an income property a little different than on a SFR. I have seen instances where the lower unit can rent for the same or more than the main level because it is cooler in the summer. In addition, the demand for rental units in some areas is so high that people are just glad to find a place to live. I discuss this fact at length for the UW and so far no problems.

 

[Rich Hahn]

I hate the 1025 for this very reason. I like others change my point of view from report to report.
If I seperate GLA I try to remeber to mention "although report asks about GBA, we have made comparisons based on GLA, and seperated out below grade area...blah blah blah"

If any report need updating tis this one..

 

[jtrotta]

IMHO - I would contact the Lender, get some input from them 1st, just so yer not doing the same thing twice times; I also would agree that being consistant is important, as long as you have another comp. to support your work theory, on the finished basement and income aspect.

Good Luck

h34r:

 

[Lee SW IL]

I should clarify. The property is a bi-level styled duplex. Each side has Living room, kitchen, dining, 2 bedrooms and a full bath. above grade. Below grade each side has a family room, bedroom and full bath with a 1 car built in Garage. Equal quality of contruction througout.

Typically on a SFR Bi-level, I would seperate the two, above grade is above grade which is what the form asks for, the 1025 asks for GBA.

Of course, I have no comprables that are bi levels, only 3, 1 story duplexes, 1 of the comps has a finished lower level. So I am using that for my overall GBA adjustment. Its the only figure that I have without pulling a figure from the air. After the grid adjustments, I works. All three comps are from $157K to $159K.

Also, I have a GRM of 104. Isn't that extremly high?? But, I have 5 sales with average.

I don't do many income properties. I have a call in with a local appraiser, but I thought I would get some ideas on what others do here as well.

Thx

 

[Rich Hahn]

depends on yur market
105 would be in the ghettos here, way low
our typical hoods have GRM of 110 to 145+