How do I explain this

[Smokey Bear]

Can't answer the question without knowing whether the lower level is below grade. I've seen many of these tri-levels where the entire structure is above grade, in which case it's all GLA, except the garage.

 

[jtinmichigan]

What, then do you call the lower, partially below grade finished area of a quad level which actually has a basement under what I call level 2 (instead of a crawl space)? In my area, it is customary to include level 1, (partially below grade and finished) in the GLA, explaining what it is in the report. These types of finished, partially below grade areas are treated by the typical buyer and seller and customary realtor reporting practices as livable square footage in my market. Realtors by local custom include this in their above grade square footage and determining exact partially below grade sq. footage is near impossible from MLS and assessors data.

Treating this area as "basement" is misleading, particularly in the context of the quad level home. Of course, it is helpfull if you have similarly designed comps.................

 

[JoshDavis]

What, then do you call the lower, partially below grade finished area of a quad level which actually has a basement under what I call level 2 (instead of a crawl space)? In my area, it is customary to include level 1, (partially below grade and finished) in the GLA, explaining what it is in the report. These types of finished, partially below grade areas are treated by the typical buyer and seller and customary realtor reporting practices as livable square footage in my market. Realtors by local custom include this in their above grade square footage and determining exact partially below grade sq. footage is near impossible from MLS and assessors data.

Treating this area as "basement" is misleading, particularly in the context of the quad level home. Of course, it is helpfull if you have similarly designed comps.................

JT, thank you. Since you are in the same state as the original appraisal, this proves my point. A partial below grade level is considered living area. And to me it makes no difference if it has a basement or crawlspace under the lower level, its still a lower level that shoudl be included in GLA.

 

[JoshDavis]

So what is the problem? Is the data not presented the way you want? Or is the analysis of the data incorrect, wrong or misleading? Or is the opinion of value compromised to the extent it does not represent a credible opinion of value?

To me it is misleading, This property is going to be listed with only 933 sq ft on the listing and that 441 sq ft is just floating out there as an "amenity"

How are they presenting the subject's basement data on page 1?
Just curious.

No basement is reported on page 1

I was so confused by the various responses I had to go back and re-read the original question.

Joker is not asking that this space be necessarily included as GLA. I read it that he stated that this "lower level" should reported as either GLA or basement space, but not as some kind of separate amenity (such as done in the example - the way an auxiliary building or some other unusual amenity might be included in a grid analysis). I agree - it's either GLA or basement. Joker, at the very least, someone should tell this appraiser to very specifically define what he/she means by "lower level" in his report.

Thank you, that's my point exactly

Can't answer the question without knowing whether the lower level is below grade. I've seen many of these tri-levels where the entire structure is above grade, in which case it's all GLA, except the garage.

The lower level is partially below grade


Thank you everyone else for your responses

 

[Scott Kibler]

My process for quads

1st floor (typically LR/DR/Kitchen) is above grade and GLA.

2nd floor (bedrooms) is above grade and GLA

"Lower level" (typically finished) is partially below grade and therefore basement area.

"Sub-Basement" (finished or unfinsihed) is below grade and therefor basement area.

Document the report by detailing this in the comments section and including a sketch of all areas illustrating interior room and stairway placement, as well as exterior doors and garage (if attached).

 

[Carnivore]

The lower level is partially below grade


Thank you everyone else for your responses

Joker,

Apparently your providing an appraisal service for a subject located in a state that you are not licensed to practice within. How are you doing this? What will you do if your called to the stand to testify about your unlicensed activity?

OK, now I will lighten up and leave you alone a little bit.

Heres something for you to not only consider, but make an effort to remember. You will need it and much more if you ever get on the stand to testify.

units of comparison
The components into which a property may be divided for purposes of comparison, e.g., price per square foot, front foot, cubic foot, room, bed, seat, apartment unit.


I know some have suggested that in their market basement area is treated the same as GLA. I take them to actually mean in a broad sense that basements have value equal to above grade GLA possibly on a per unit basis.

OK, I dont have a way to disagree with them, but I can say in my market that thinking does not generally exist. The only exception I imagine is at lake Norman or Lake Wiley , Charotte, NC. Even there I dont have evidence that Basements are seen in the same light as GLA. I think there is a difference in the utility, and that per unit value is by coincidence eqaul.

functional utility
The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards; the efficiency of a building's use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms.


Here is an example to consider:

Imagine two houses side by side for sale at $100,000 each. 4 BR 2.5 baths

House 'A' is a two story tradtional structure with 2,000 sft GLA.

House 'B' is a ranch with 1,000 sft GLA 3 br 1.5 ba and a fully finished basement with 1,000 sft. 1 br and 1 FBA equal in quality as the GLA of the upstairs and the next door 2 story.

My question is simple: Which one will sell first?

 

[Offshore]

Long distance reviews certainly can be complex. :icon_idea:

 

[Mr Rex]

I can't believe nobody asked him what his supervisor/mentor thought, or did I miss it?

 

[CJ1234]

To me it is misleading, This property is going to be listed with only 933 sq ft on the listing and that 441 sq ft is just floating out there as an "amenity"



No basement is reported on page 1



Thank you, that's my point exactly



The lower level is partially below grade


Thank you everyone else for your responses

I'm still not clear on how they addressed the subject's Foundation on Page 1 of URAR.

You said, "No basement is reported on page 1" Which box did he check? I'm assuming "Partial" or "Crawl Space."
How did the describe the basement in the improvements section? Does the Box/description match with the grid?




Carnivore---That's a matter of Preference. In many markets in MN, a 1-Story with a walkout basement will fetch a greater price than the 2 story (Where GLA are equal). And some where the 2 story will have greater appeal.
That said, many owners of the Walkout 1-story properties will tell me they own a "2 story, from the back" LOL.

 

[Tim Hicks (Texas)]

Why do they have to call it a tri-level? Why not a two story with finished basement or a three story property? Why muddy the description.

Ah, two Jokers on the forum. Now, the original Joker will see how I feel about other ducks and Tim's on this forum.