Including Above Grade Area Into Basement or Below Grade Area

[gregb]

This tri-level has a family room partially below grade without market participants recognizing a penalty for its "basement"

 

[residentialguy]

View attachment 82137

It doesn't matter if the dirt is at 1 or 2. It is still the exact same house.

That's right. You compare it how that house typically functions, which is level 1 (which is how it is pictured)... so all the houses like that, regardless of dirt level, will start the GLA at level 1 and levels below that are basement.

 

[J Grant]

Basements are the norm around here. Finished basements are somewhat common. But the quality of finish varies greatly. You also have to be careful with what an agent might call a "finished" basement. Painting the concrete walls and laying down a piece of carpet is not a "finished" basement

Exactly, and it applies to basemetns but to any area of a house, a converted garage or areas in general - Indeed some agents exaggerate and call a room finished, whether a basement or garage, with only cosmetic and cheap work done, as compared to a quality finished space - we have to find out by looking at interior photos and calling for verification and asking questions - part of the fun lol.

 

[J Grant]

Waiting to see Fannie's schedule for reporting rogue appraisers to state boards for ANSI noncompliance issues. Thankful that VA and my other clients are resisting the rush to ANSI.

I hope they are not on a witch hunt for minor discrepancies and errors.

 

[residentialguy]

This tri-level has a family room partially below grade without market participants recognizing a penalty for its "basement"

Who says it's a penalty to have a basement? The market determines price for square foot. However, I would put money on that the lower basement level does have less value per square foot than the upper levels.

 

[gregb]

Who says it's a penalty to have a basement? The market determines price for square foot. However, I would put money on that the lower basement level does have less value per square foot than the upper levels.

Trust me, in the land of palm trees and blue surf (as a former resident you know), no agent is going to market a local property as featuring a basement.

 

[residentialguy]

Trust me, in the land of palm trees and blue surf (as a former resident you know), no agent is going to market a local property as featuring a basement.

Lol, I'm talking appraisal world, not la la land thinking. I identify as GLA

 

[djd09]

fannie dont measure when they waive appraisals...and we laughed and laughed and laughed....

 

[Kozmicbluesman]

View attachment 82137

It doesn't matter if the dirt is at 1 or 2. It is still the exact same house.

This really is a mute point as the appraiser acknowledged in the report that the living room was above grade. He just didn't consider it as such within the sales grid. I think most appraisers would still see the living room as above grade. There is no dirt against any wall of the living room. it's all above grade. But, I appreciate your input! Thx

 

[Terrel L. Shields]

Who says it's a penalty to have a basement?

A basement is not defined by its unit value, nor its function. It is defined by its position in relation to "grade" (ground level)