Need help to rebut Reviewer's comment that dwelling does not meet ANSI Z765-2021

[MMing5000]

When can ANSI Z765-2021 not be applicable for SFR?

See attached photos. Subject is a detached SFR with a detached carport improved at street level, but the entire dwelling is improved approx. 4 feet below street level, with 3 sides of the dwelling having open access, and one side of the dwelling butting against the carport foundation; these types of dwellings are common in the neighborhood with ample similar comps. The Reviewer says the sketch does not conform to ANSI Z765-2021 because the house is below grade and should be classified as a basement. I have provided comps that are entirely above grade, partially below grade as subject, and comps that are entirely below grade and not visible from the street. The comps show little value difference between dwellings at street level vs dwellings partially below street level and dwelling completely below street level. Should the subject property, and comps that are partially or fully below grade, all be classified as walk-out basements?

Previously had appraised another similar property (Subject-2 photos) in the neighborhood for a different Lender. The front photo clearly shows that level-1 is partially below grade, but the rear photo shows level-1 is completely above grade. The reviewer on this property made no qualms that level-1 was included in the GLA measurement. Although ANSI is a now a requirement, it appears it can be a subjective judgment call by the appraiser or the reviewer.

i have attached the first few pages of the ANSI fact sheet. Where can i get more detailed ANSi requirements to rebut the reviewer and support my case?

 

[Dublin ohio]

but the entire dwelling is improved approx. 4 feet below street level

Street level is not the "grade" that ANSI refers to. It is the level where the home is built. Is the floor level of the subject above the surrounding dirt? If it is. Than it is above grade.

Just looked at the photos again. Is the area in the second photo the area between the carport and house. If it is. Looks like the house is "technically" above grade since it is not connected to the carport foundation.

 

[Joe Flacco]

Do you guys call that a Q5?

 

[residentialguy]

If the main level is below grade - meaning any part or corner of the main level is below the surrounding dirt level (eg. it is built into a hill in back) it is an Ansi exception- GXX 001... State it and explain it in the comments and count it as GLA.
Street level has nothing to do with it, however. I can't tell from the photos if it is truly bg. If they have a cut path in the dirt surrounding the house at grade level, then technically, it is not below grade, imo. Grade is what is pressed against the house.

 

[shrubberyvaluation]

Do you guys call that a Q5?

Maybe, don't see that type of construction much.

 

[Tim Hicks (Texas)]

From the pictures I see, it does not look below grade. They lowered the lot and placed the house on the lower lot. Otherwise, on a street with a steep hill with retaining walls between each house, every home would be below grade except the house at the top of the hill which is flawed logic with regard to lot grading.

 

[MMing5000]

Street level is not the "grade" that ANSI refers to. It is the level where the home is built. Is the floor level of the subject above the surrounding dirt? If it is. Than it is above grade.

Just looked at the photos again. Is the area in the second photo the area between the carport and house. If it is. Looks like the house is "technically" above grade since it is not connected to the carport foundation.

i see your point - so, if the property owner feels the gap between the house and the carport foundation is a nuisance or safety concern, and fills the gap with dirt, then the entire house would be considered as a walk-out basement?

 

[MMing5000]

Do you guys call that a Q5?

i think they can be considered as Q5, but no appraisers classify these properties as Q5 because they are all $1.5M+ properties. Classify them as Q5 would only raise red flags for the Lenders.

 

[MMing5000]

If the main level is below grade - meaning any part or corner of the main level is below the surrounding dirt level (eg. it is built into a hill in back) it is an Ansi exception- GXX 001... State it and explain it in the comments and count it as GLA.
Street level has nothing to do with it, however. I can't tell from the photos if it is truly bg. If they have a cut path in the dirt surrounding the house at grade level, then technically, it is not below grade, imo. Grade is what is pressed against the house.

i understand that "baerns" are ANSI exceptions. But can this subject property quallify for ANSi exception? Where can i get more info on-line other than the basic ANSi fact sheet and guidelines. And, IF the subject is a 2-story dwelling, then would the level-1 improvements considered to be walk-out basement? Seems this ANSI rules and guidelines can be arbitrarily applied.

 

[sputnam]

Dwellings are not required to meet ANSI. Appraisers are required by Fannie and others to measure the dwelling and calculate the living area using ANSI Z765-2021. If the floor of any part of the finished area is below grade, it's basement. You can't make the dwelling suddenly be above grade. All you can do is describe what you find. Use the exception code. If you stated, that your SF was based on the ANSI standard, then you got it wrong. The reviewer has a point. If you used the exception code and explained why the dwelling couldn't be measured using the usual ANSI standard, then you are right.