Living Area Below Grade

[Jo Ann Meyer Stratton]

The biggest factor to consider is the information regarding the sales in the neighborhood. If you can identify how much below grade area is in each comparable in your report--smooth sailing, the below grade area for your subject is listed under basement on the Sales Comparison Grid. Of course you would show in your sketch and comments and front page exactly how much square footage of your subject is above grade and below grade. But when you get to the Sales Comparison Approach--information available regarding the comparables will be the driving force. If the public records, private records, owners, buyers, real estate agents have no idea how much square footage is below grade and how much above grade and only have information about the total amount of square footage--then you will need to compare total amount to total amount so that you are comparing apples to apples. When you have the break down on the comparables you can compare the subject's oranges to comparable's oranges and the subject's pears to the comparable's pears. Either way the opinion of value will be very, very similar if not the same. But the main and most important thing to do is to explain, explain, explain and then explain some more so that reader from 2,000 miles away that has never been west of the Hudson River or east of the Pacific coast line understands, knows and agrees with the what, how and why of what you did.

Explain--explain--explain!!!!

 

[ginna currie]

Originally posted by Marcia Langley@Jan 5 2006, 11:17 AM
Ginna,

First, I am a proponent of being consistent with local practice and being consistent with subject/comps.

But, since my area adheres strictly to below grade=basement, I have a question just out of curiosity.

Would an appraiser in NY mix the sort of structure you describe with similar GLA that is all above grade in the same report?

I mean, is there no market perception value difference between all above grade and part below grade houses?

Ms. Langley:

Only in NYC!! ( i live on Long Island and anything below grade does not get counted becuase it is a basement). Now back to NYC. In Brooklyn and Manhattan there are Brownstones that typically have a cellar, basement, first floor, second floor, etc.
It is viewed as a cellar, 1st level(an apartment), 2nd level(parlor level), third level, etc. Yes I have done a job on a brownstone that had a basement that was not counted in the GLA. But I had to use comps that had a basement counted in its GLA becuase most brownstones are built that way. It was based on the GLA besides being an overimprovement in Bedford Stuyvesant. Please realize there are sooo many sales in NY.

This basement that I speak of is about 60-70% below grade and is counted. Now where I live I could not count that, but in Brooklyn, I would.

 

[ginna currie]

Dear Brad:

Where I work, we count the basement apartment unit in the GLA. The cellar, below the basement, where the heating unit and the meters are located) is not counted. I have only been in one brownstone that had a basement, no cellar and of course I did not count it in the GLA.That was an atypical detached brownstone.
I mention the cellar to give a complete pic to those reading this thread.
**please note in all our form reorts we have a blurb explaining why we counted the below grade area even though Fannie Mae says its a no-no.

Happy New Year!!

 

[bradellis]

Ginna,

Happy New Year to you as well.

I have never been in a brownstone that had no basement- you are calling it part of GLA but, at least on the old forms, that would be called GBA- gross building area.

Anything below grade is basement- and I assure you that your peers in Brooklyn and Bed-Sty are calling it that way and explaining it. Do note that I have never said that this space cannot add to value as much as above grade space.

But just because there is a cellar below the basment does make the basement above grade. The delineation is clear in ANSI- very very clear.

Brad

 

[ginna currie]

Dear Brad:

I agree completelywith you, I was just playing devil's advocate. There are always exceptions to the rules and I think NYC brownstones are the epitomy (with living space that is partially below grade and is counted as GLA.) Where I live on Long Island, it would not be counted. I'm going to eat now.

Oh by the way, could you please explain to me what a "reverse 1.5 story house" is?

thank u

 

[bradellis]

Ginna,

Hope you had a great meal!

Reverse 1.5 story? First time I ever heard of it is here and I haven't a clue what it is!

Brad

 

[Marcia Langley]

Ginna,

I'm going to guess that is a house that has a bigger second story than first story. For example a house that the second story extends out over the porches.

 

[Mike Garrett RAA]

Very common in my market for the upper level in a two story to be larger than the main level...extends out over garage. Never heard the phrase "reverse 1.5 story".

 

[jay trotta]

Our Market Area; offers those similarities of which you speak, in certain style's of dwellings we do a Total GLA - explain what & why we did it (most Realtors in the area use this as a Selling tool) with Good detail.

Never got one kicked back - FNMA guidelines are just that and there guideline to Explain what and why you did what you did, supports those "guidelines". Similarity; proximity; style; and "market acceptance" are what we are measuring. As far as the directive to "Lower" your Opinion - ifn this wise guy has some support product, tell him you would be more than happy to Look at His Review. Just because they are in an upper Bank position, doesn't mean they know Your market area.

Good Luck

h34r:

 

[Hall McClenahan]

Originally posted by ginna currie@Jan 7 2006, 09:53 AM
Oh by the way, could you please explain  to me what a "reverse 1.5 story house" is?

Gina

Since i brought it up I will clear it up for you! In Missouri it is a sales term that has recently been used by agents to market a ranch with a walk out basement. Ususally the master bedroom is on the entry level along with the kitchen, .5 bath, and living room. all other bedrooms, baths, rec-room are found in basement. The key for the design is a sloping lot.

Hall