Montgomery County - Split Levels And GLA

[Joe Flacco]

Property A ::



This property is a three level split. Two split levels above grade and one split level partially below grade. The assessor calculates the living area as 1,473 SF.



If you look at the structure description in the tax record, you can see that sections one and two are calculated as one story above grade (1) and section three is calculated as one story with basement (1B). This structure description tells you that the two above grade split levels are included in the GLA and the one below grade split level is calculated as basement.


Property B ::



This property is a four level split. Two split levels are above grade and two split levels are at least partially below grade. The assessor calculates the living area as 2,241 SF.



If you look at the structure description in the tax record, you can see that section 2 is calculated as one story with basement (1B) and section three is calculated as two story above grade (2). The photo clearly shows that section three is one level above grade above a partially below grade level. The living area stated on tax records includes the first partially below grade level in the living area calculations. This house is actually 1,431 SF on the two split above grade levels.

In order to make apples to apples comparisons in the sales comparison approach, the correct GLA to report for property B is 1,431 SF and not 2,241 SF. It is important to look at the structure description to see what is included in the "living area" calculation.

 

[residentialguy]

Yep, I agree. They're both a 1 Story detached homes. One has a partial basement (typically crawl space under the kitchen/dining area), the other has a full basement. Assessors have different ways of calculating homes and agents think that reporting bigger numbers will fool the market. They're just a ranch with 1/2 the house split and raised a half story.

 

[Joe Flacco]

I am just sharing because I have seen several appraisal reports where the appraiser did not seem to know how to read the structure description. They just report whatever the living area says. I have never seen a appraisal report that suggests the appraiser looked at the structure description.

 

[residentialguy]

Sad

 

[TJSum]

Good examples Joe. Just to add to your examples, I've seen plenty of times when tax records will show four total levels as your second example shows, and it turns out the home only has three levels. And the opposite occurs as well, the tax records will show three total levels as in your first example when there really is four. So one has to actually confirm via driving the comp, agent info, MLS pics, etc., to make sure what is really there.

As for your examples, I find that the tax records will always show three levels above grade, no matter what for split level style homes, but as you point out, with the square footage shown for each level, it should be easy to figure out (the smaller numbers many times will be for overhangs).

 

[Mr Rex]

It is important to realize that tax data as it relates to GLA is suspect at best. Whenever I see a MLS listing that matches the tax assessors records I ask questions because I know the tax assessors due diligence, the RE agents lack of due diligence, and my required due diligence are vastly different as are the measurements.

 

[gregb]

Same due diligence applies when the MLS GLA does not match the tax assessor's GLA.

 

[Mr Rex]

Same due diligence applies when the MLS GLA does not match the tax assessor's GLA.

Highly unlikely that it ever would since assessors here round to the nearest foot. Hardly acceptable "accuracy" IMHO.

 

[Joe Flacco]

Good examples Joe. Just to add to your examples, I've seen plenty of times when tax records will show four total levels as your second example shows, and it turns out the home only has three levels. And the opposite occurs as well, the tax records will show three total levels as in your first example when there really is four. So one has to actually confirm via driving the comp, agent info, MLS pics, etc., to make sure what is really there.

As for your examples, I find that the tax records will always show three levels above grade, no matter what for split level style homes, but as you point out, with the square footage shown for each level, it should be easy to figure out (the smaller numbers many times will be for overhangs).

For the first example the assessor includes only the two above grade split levels. It seems like with the four level splits sometimes they include three and sometimes they include two. There seems to be more that include three.

Hopefully, most of us are not searching 1,000 SF to 1,800 SF for 1,400 SF above grade split levels because then they would be missing a lot of potential comps.