Is This Below Grade By Ansi?

[Greg davenport]

I can not find my copy of the Standards, so here is the problem

Doing an REO that has 2 finished levels, and an unfinished basement. One finished area is above grade, and the other I am not sure about.

The property slopes (falls off) to the rear of the house. The lower level has an unfinished basement, built in garage, and finished living area equal to the first level in material.

The problem is the lot has been developed in such a way that the garage and lower level are located behind the unfinished basement. There is only one exterior wall that is partially below grade on the lower level. A small portion of it, as the lot slopes down. By the time you get to the end of the house, the wall is no longer below grade.


Greg Davenport
Davenport Appraisal Services
Beebe, AR 72012
www.appraisear.com
Online ordering now available!

 

[Deleted member 80407]

Kinda reminds me of a raised-ranch style house in the Chicago market. To my understanding, if any part of the lower level has concrete walls under grade, the entire area should be considered as below grade living space. Usually, this space commands a premium over basement level living space. I would not count the area in the overall above grade living space.

 

[Jeff Horton]

Originally posted by James Sturm@May 12 2005, 11:33 AM
...To my understanding, if any part of the lower level has concrete walls under grade, the entire area should be considered as below grade living space.

Per Fannie Mae if the floor is below the grade it is consided Below Grade.

My ANSI has walked off too.

 

[Peter LeQuire]

If any part is below grade, it's all considered below grade. BUT, after you describe it as being partially below grade, you can treat is as you think appropriate. For example, if the lower level has the social/service areas (kitchen, living, etc.) you'd treat it differently than you would if it were, say, den, office, recreation room. If the upper level has all of the elements required to make it a SF dwelling (social, service, privacy, functions, etc.) the lower level, to me, would have the utility of finished basement. If some of the necessary elements of a residence were only on the lower level, I think you'd treat it differently, with an eye to any functional disutility resulting from that arrangement.

(How's THAT for vague?)

If you're doing a cost approach, that should give you a starting point: whether you're appraising a two story with part below grade or a one level with finished basement would, I think, make a significant difference.

ANSIZ765-2003

ABOVE AND BELOW GRADE FINISHED AREAS
The above grade finished square footage of a house is the sum of finished areas that are on levels entirely above grade. The below grade finished square footage of a house is the sum of finished areas that are on levels that are wholly or partly below grade. (Page 2)

and

REPORTING OF ABOVE- AND BELOW- GRADE AREAS
No statement of a house's square footage can be made without the clear and separate distinction of above-grade areas and below-grade areas. (Page 3)

 

[Otis Key]

Ditto Peter & Jeff. I do remember a Fannie rep talking at a seminar years ago that said "from the main level entry, that if you go more than 3 steps down, it's a basement." He then went on to say that it's strongly recommended that it be "shown on the first page of the report as a basement, but if it is the custom of the local market, and can be proven, then you can combine it in the sales comparison approach, if it's finished and has the same quality, feel and appearance as the upper levels, ie, tri-level or split-level homes."

Don't quote me because I don't remember what his name was or even when he said it. But it was a fannie rep when they came out with the 2055 and all the other alnumerica forms. I don't remember if it was before finalized or after.

Stick with the ANSI stuff and you'll be safer. Indicate that it's according to ANSI on the floorplan and you're even better off!

 

[Peter LeQuire]

I may be wrong, but ANSI only stipulates that the areas be correctly identified and reported: how they're treated is another issue entirely. Call it what it is: treat it as appropriate.