Including Above Grade Area Into Basement or Below Grade Area

[J Grant]

Or realtors, assessors, some builders. Plus, it's "not" used for condos or apartments or commercial (AG's verify this) so, it's use is inconsistent. Not universal.

Therefore, the appraiser following their many masters, rules and regulations, get the brunt of the anger directed at them. Borrowers, realtors, and even the client at times get angry due to discrepancies, questioning market acceptance of what is and what is not considered GLA.

It's not about the measuring system itself.

We don't serve many masters. There is a client, and USPAP, at times an assignment condition, and if a lending appraisal, then an obligation to use ANSI Just explain in the report that ANSI is a requirement and that it may result in discrepancies from the SF found in the MLS report or other sources.

"The "many masters" come from appraisers trying to placate or accommodate an owner or RE agent instead of sticking to their job.

WRt to RE agents and their "anger". The don't even measure most of their properties; they say they relied on public records or othe sources adn sometimes an appraisal to avoid any liability - for their "puffery" of including the SF of garages, patios, basements, and the dog house in the GLA living area.

The fact that RE agents will be among the third parties running out to replace appraisers in the "data gathering (inspection) for some assignments in the Fannie "modernization" is a travesty. There is nothing "modern" about using runners to inspect, they simply found a way to get it accepted for profiteering purposes.

 

[Dublin ohio]

View attachment 82097

Two identical townhouses across the street from each other.

Do you guys say the left is 2,000 SF above grade with no basement and the house on the right is 1,600 SF with 400 SF basement?

Call the below grade whatever you want. But if it is for Fannie. It is not GLA.

 

[Dublin ohio]

ansi doesn't define basements...but keep on conflating

But any appraiser with a modicum of common sense knows what "basement" means. But it is obvious some still don't or don't want to understand ANSI

 

[djd09]

But any appraiser with a modicum of common sense knows what "basement" means. But it is obvious some still don't or don't want to understand ANSI

hey gaslighter...file your complaint with ansi

 

[Joe Flacco]

Call the below grade whatever you want. But if it is for Fannie. It is not GLA.

I'm not advocating for one way or the other.

Just curious what people are doing with that since it is a common scenario.

Like if you are appraising the house on the left, and the house on the right is your comp, then do you report the subject as three levels above grade and the comp as two levels above grade with basement?

The options are:

1) Do the above and make no adjustments for above grade living area and basement size.
2) Do the above and make off-setting adjustments for above grade living area and basement size.
3) Report both as two levels above grade with basement.
4) Report both as three levels above grade without basement.

Makes no difference to me how somebody decides to deal with it as long as they recognize and report that they are identical houses.

Typically in these situations, the assessor records will list both the house on the left and right as being two levels above grade with a basement. And that's the way it makes sense to me based on how the different levels of the house function. The downstairs functions the same as a basement.

 

[CGinMN]

View attachment 82097

Two identical townhouses across the street from each other.

Do you guys say the left is 2,000 SF above grade with no basement and the house on the right is 1,600 SF with 400 SF basement?

We technically only have to report the subject to ANSI, not the comps. Two ways to go about it.... report the subject to ANSI and modify the comp to match the subject in the above- and below-grade finished lines, which may contradict the ANSI standard for the comp. Alternatively, you can report the subject all the comps to ANSI, but include no adjustment in the above- and below-grade lines, then add a "total finished/unfinished SqFt" on the bottom line and adjust there.

 

[CGinMN]

I do not like off-setting adjustments.

 

[Surf Cat]

We don't serve many masters. There is a client, and USPAP, at times an assignment condition, and if a lending appraisal, then an obligation to use ANSI Just explain in the report that ANSI is a requirement and that it may result in discrepancies from the SF found in the MLS report or other sources.

"The "many masters" come from appraisers trying to placate or accommodate an owner or RE agent instead of sticking to their job.

WRt to RE agents and their "anger". The don't even measure most of their properties; they say they relied on public records or othe sources adn sometimes an appraisal to avoid any liability - for their "puffery" of including the SF of garages, patios, basements, and the dog house in the GLA living area.

The fact that RE agents will be among the third parties running out to replace appraisers in the "data gathering (inspection) for some assignments in the Fannie "modernization" is a travesty. There is nothing "modern" about using runners to inspect, they simply found a way to get it accepted for profiteering purposes.

You mention at the bottom of your post but forgot at the top, Fannie Mae guidelines.

I'm not talking about accommodating an agent or a borrower. You have USPAP, Fannie Mae guidelines, lender guidelines (assignment conditions) AMC 17 page engagement letters which include lender's conditions as well as their own "cover their a** conditions.

So, yes...IMO....many masters.

To simultaneously tend to or support or devote oneself to two different—often conflicting—responsibilities, pursuits, ideas, or people.

It's a tightrope walk complying with all the above while remaining unbiased and continuing to garner assignments.

No, Realtors do not measure their listings. They go by public records, assessors data which, some were and many were not, measured by ANSI standards. Thus, conflicting data.

All the realtor has to do in regards to GLA and or non permitted additions is state "buyer to verify" and they're in the clear.

 

[Dublin ohio]

2) Do the above and make off-setting adjustments for above grade living area and basement size.

If for anybody that require ANSI. The above would be correct. Otherwise it is up to you as long as you are consistent and it is explained

 

[Joe Flacco]

I do not like off-setting adjustments.

I know what you mean. But sometimes you might have a different comp that needs adjustment for one of the two differences and another for the other of the two differences. And then it looks wierd in the grid when you adjust one comp but not the other.