GXX001 Not Invoked After Work Completed

[shrubberyvaluation]

Top level 4bed 2bath, lower level 1bath, fireplace, rec room. You could call the rec room a bed as well. All the exact same finishes.

I could of sworn you said it was all one level rancher on a slab. Now I can see why it was called 650 SqFt. below grade. I don't know the market but my guess would be seperating it like the 2nd appraiser did is the right call.

 

[shrubberyvaluation]

They said so over the phone and in person.

Odd, typically appraisers don't discuss assignment results to someone who is not the client.

 

[residentialguy]

I could of sworn you said it was all one level rancher on a slab. Now I can see why it was called 650 SqFt. below grade. I don't know the market but my guess would be seperating it like the 2nd appraiser did is the right call.

Per Ansi, it is 100% below grade. You would need to depart from ANSI to call it a ranch.

 

[MoistMitten]

Ok. It is a ranch built into a hill with a partial walkout basement that is finished. I would have done the ansi exception and compared it like that. (No, the lower level does not function as a GLA level... it's a typical finished walkout basement)

Now i'm going to be brutally honest with you. It is a double wide looking pig with tons of functional utility issues. You putting lipstick on it won't bring that much value to it, and it doesn't matter that you used high end designer lipstick. You would have better tearing that down, regrading and rebuilding.

There is no comparison to that comp of way superior functional utility that you posted earlier (see photos below).
Yes, the appraiser should have done the GXX001 exception and called it a ranch with a partial walkout basement... but I doubt you'll get better value if the comps looked like this, with nice flat gentle sloping lot and typical grade with nice large windows all around.
View attachment 74120
View attachment 74121

Looks like the comp that I posted that is a 1:1 in regards to GLA. Whats kinda funny is that the hill actually provides more functional area for short term rental purposes. (I know thats not how value is determined for appraisals.) Given the home location the range for this house is from 330-560k so realistically its all about the opinion of the individual appraiser and thats quite the spread.

 

[residentialguy]

Looks like the comp that I posted that is a 1:1 in regards to GLA. Whats kinda funny is that the hill actually provides more functional area for short term rental purposes. (I know thats not how value is determined for appraisals.) Given the home location the range for this house is from 330-560k so realistically its all about the opinion of the individual appraiser and thats quite the spread.

I couldn't disagree with you more. Obviously the value is in your land. Your lake frontage would have had to have been quite superior to that comp. That comp will take a hit for lack of finished basement, but I highly doubt the basement value is anywhere close to that of the GLA area... so you take a bigger hit! There is nothing superior in having stairs with a smaller footprint.
Example: your 1100 GLA X $75sf = $82,500. 600 sf Basement X $30 sf = $18,000; total = $100,500. Vs the comp 1700gla X $75sf = $127,500

You may have had better luck reporting this as an income property.

 

[residentialguy]

@MoistMitten
It looks like the appraiser did do it correctly with the GXX001... he reported the top level as GLA. That is an ANSI departure. Per ANSI, you have 0 GLA. Are you trying to suggest that the basement should be GLA as well?

 

[MoistMitten]

@MoistMitten
It looks like the appraiser did do it correctly with the GXX001... he reported the top level as GLA. That is an ANSI departure. Per ANSI, you have 0 GLA. Are you trying to suggest that the basement should be GLA as well?

Well thats how it was reported on the initial ARV appraisal with the logic of... if its all below grade its all on one line.

 

[residentialguy]

Well thats how it was reported on the initial ARV appraisal with the logic of... if its all below grade its all on one line.

If it functioned like a 2 story, then that would be all GLA... but this functions as a ranch with a walkout basement, so he did it correctly. 100%

Doing that as 100% GLA would be a misleading report.

 

[shrubberyvaluation]

Well thats how it was reported on the initial ARV appraisal with the logic of... if its all below grade its all on one line.

Most likely I would of done it like the 2nd appraiser 1150/650 rather than 1800.

 

[residentialguy]

Most likely I would of done it like the 2nd appraiser 1150/650 rather than 1800.

Agreed. There is no basis in doing it 1800 GLA. In fact the buyer would have a case to suing them if the original purchased was based upon an inflated price because they used 1800 square foot GLA.