Including Above Grade Area Into Basement or Below Grade Area

[Kozmicbluesman]

Serious question here. How often do you include above grade GLA into the Below Grade or Basement area? What could possibly be wrong with doing that? Especially if it makes the adjustment percentages look better.

 

[Surf Cat]

Never. GLA is always separate from basement area and or finished attic area. Always has been, always will be.

It is what it is.

 

[Dublin ohio]

finished attic area

Depends on what you consider a finished "attic".

 

[Dublin ohio]

If you are doing GSE work. There is also that pesky ANSI above grade and below grade finished area thingy

 

[Terrel L. Shields]

No matter it is a walk out basement, no matter that it is 100% finished GLA is never below grade.

I recall having a copy of a recent appraisal by 2 Tulsa appraisers of a 1 story log cabin with a finished basement. They estimated 4,400 SF and about $450k. I measured it as 2200 SF GLA and 2200 SF finished basement. Had some nice comps built much the same. All in the same development (a large rural 10,000 acre development). The other guys used comps from lakes 40 miles away. I came in about $230,000 and the property sold for $224,000 several months later. The buyer was sold on the property by their CPA at the higher price to donate to a college. I appraised it for the college. They listed with a local Realtor and had to drop the price and drop the price until selling close to what I had determined. The lady lost $200k of her donation and ended up suing her own CPA. Never did determine how the suit came out.

Even if the market is the same per SF - there is no reason you cannot adjust the GLA and SF of the non-GLA at the same unit price provided it is justified. But there is a real danger using 1 sty comps with the same SF and the combined GLA and non-GLA subject (and visa versa).

 

[djd09]

no matter that it is 100% finished GLA is never below grade.

berm house...

 

[Terrel L. Shields]

berm house...

Back in the energy efficient days, I know a guy whose home burned and he was the single father of 2. The community helped him rebuild and a local architect designed an energy efficient home - bermed up.... When he tried to refinance years later, the home was dinged for being bermed. After about 3 tries, he had the berm removed and a footing poured then built a brick wainscot around the outside. Magically the SF value jumped about $20 a SF.

 

[sputnam]

In the description of the subject... never. In the sales comparison grid... maybe. In a market that routinely includes below grade finished area when describing the subject property, then apples to apples comparisons might require that you lump it together. It's a legitimate way to approach the valuation analysis but, it will require you to clearly explain what you did and why you did it that way. I've done it many times and never had any push back.

 

[Kozmicbluesman]

In the description of the subject... never. In the sales comparison grid... maybe. In a market that routinely includes below grade finished area when describing the subject property, then apples to apples comparisons might require that you lump it together. It's a legitimate way to approach the valuation analysis but, it will require you to clearly explain what you did and why you did it that way. I've done it many times and never had any push back.

Can you be more specific....perhaps with an example scenario? In what situation would moving GLA to the Below Grade line within the sales grid be appropriate?

Are you really comparing "apples to apples" if you do this?

Why wouldn't you expand your search parameters to find more similar comps?

 

[Overimprovement]

Why move GLA to the below grade line? I can see the thought behind possibly counting below grade space as GLA, but what is the point of moving GLA to below grade? What are you trying to accomplish?