Bi-levels; Tri-levels

[Lee Lansford]

For those who communicate the appraisal of a SFR via the current URAR/1004, the section for GLA has this commandment: "Square Feet of Gross Living Area Above Grade".

Need I say more?

 

[Mztk1]

Unless you are in a state that is dictated by ANSI, then you should consider the area what the market considers it. Most of the markets I have appraised considered the lower level of the bilevel and that family room/bedroom/bath level of the split level as living area, so that is what they are considered.

Fannie, in regards to counting it as living area says:

To ensure consistency in the sales comparison analysis, the appraiser generally should compare above-grade areas to above-grade areas and below-grade areas to below-grade areas. The appraiser may deviate from this approach if the style of the subject property or any of the comparables does not lend itself to such comparisons. However, in such instances, he or she must explain the reason for the deviation and clearly describe the comparisons that were made.

That tells me it is okay to count the area that is slightly below grade as living area if that is how the market perceives it.

 

[Thomas Fiehler]

Jim-Is it the market that perceives it or the agent that just regurgitates the county data?

 

[NC Appraising]

Lee,

Don't forget that they even highlighted above grade on the first page...
and on the second page it says basement & finished rooms below grade.

Jim,

Why did Fannie even write this if every appraiser can utilize the loophole that you posted? Don't take it the wrong way, I enjoy your posts Jim.

Fannie Mae
XI, 405.05: Gross Living Area (11/01/05)

The most common comparison for one-family properties (including units in PUD, condominium, or cooperative projects) is above-grade gross living area. The appraiser must be consistent when he or she calculates and reports the finished above-grade room count and the square feet of gross living area that is above-grade. For units in condominium or cooperative projects, the appraiser should use interior perimeter unit dimensions to calculate the gross living area. In all other instances, the appraiser should use the exterior building dimensions per floor to calculate the above-grade gross living area of a property. 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.

Rooms that are not included in the above-grade room count may add substantially to the value of a property—particularly when the quality of the “finish” is high. For that reason, the appraiser should report the basement or other partially below-grade areas separately and make appropriate adjustments for them on the “basement and finished areas below-grade” line in the “sales comparison analysis” grid.

To ensure consistency in the sales comparison analysis, the appraiser generally should compare above-grade areas to above-grade areas and below-grade areas to below-grade areas. The appraiser may deviate from this approach if the style of the subject property or any of the comparables does not lend itself to such comparisons. However, in such instances, he or she must explain the reason for the deviation and clearly describe the comparisons that were made.
:Eyecrazy:

 

[Rufus]

I haven't done one, but this got me to thinking about an earth home.

Above grade GLA: 0
Room count: 0/0/0

I bet underwriters would love that.

 

[Lee Lansford]

...Most of the markets I have appraised considered the lower level of the bilevel and that family room/bedroom/bath level of the split level as living area, so that is what they are considered...

IMHO, "living area" does not necessarily equate to "Gross Living Area".

 

[Lee Lansford]

Lee,

Don't forget that they even highlighted above grade on the first page...
and on the second page it says basement & finished rooms below grade.

:

So, what's the point?

 

[Mztk1]

Lee,

Don't forget that they even highlighted above grade on the first page...
and on the second page it says basement & finished rooms below grade.

Jim,

Why did Fannie even write this if every appraiser can utilize the loophole that you posted? Don't take it the wrong way, I enjoy your posts Jim.

Fannie Mae
XI, 405.05: Gross Living Area (11/01/05)

The most common comparison for one-family properties (including units in PUD, condominium, or cooperative projects) is above-grade gross living area. The appraiser must be consistent when he or she calculates and reports the finished above-grade room count and the square feet of gross living area that is above-grade. For units in condominium or cooperative projects, the appraiser should use interior perimeter unit dimensions to calculate the gross living area. In all other instances, the appraiser should use the exterior building dimensions per floor to calculate the above-grade gross living area of a property. 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.

Rooms that are not included in the above-grade room count may add substantially to the value of a property—particularly when the quality of the “finish” is high. For that reason, the appraiser should report the basement or other partially below-grade areas separately and make appropriate adjustments for them on the “basement and finished areas below-grade” line in the “sales comparison analysis” grid.

To ensure consistency in the sales comparison analysis, the appraiser generally should compare above-grade areas to above-grade areas and below-grade areas to below-grade areas. The appraiser may deviate from this approach if the style of the subject property or any of the comparables does not lend itself to such comparisons. However, in such instances, he or she must explain the reason for the deviation and clearly describe the comparisons that were made.
:Eyecrazy:

No offense taken:

All of Fannie is a loophole, with the biggest loophole of all is having "Guidelines".

It must be very, very difficult writing instructions on how to go about doing an appraisal that are supposed to be good for the entire country.

 

[NC Appraising]

Lee,

No point, just adamantly agreeing with you, gosh

 

[CANative]

Describe it and appraise it to market conditions. In areas with hillside construction many houses are "split level." The market doesn't "cost it out" for crying out loud. And if you insist on "costing it out" just use M&S the correct way. It's in there.

I present the building sketch with all levels and label them accordingly. It all calculates to GLA but is labeled appropriately (above grade entry level, partially below grade lower level, etc.). On the sales grid the total area is in the GLA cell. In the basement area I will enter the square footage of the partially below grade area and state "included above." For the comps I will do the same if I have an idea of the break out. If I don't I just put in "unknown, included above."

I make sure I write enough narrative description to make it clear.

Fannie Mae comes up with some really stupid stuff sometimes.