Need Help with ANSI/Below grade, hold the snark please!

[Shawangunk RE]

Doing an appraisal for a conventional purchase. SF home, 672 SF built in 1900. The only kitchen and bath are below grade in the basement. No, I do not have any comps going back 2 years with this situation. Due to FNMA/ANSI I cannot include those rooms in room count or GLA. Soooo, my grid shows 4/2/0 for the subject room count.
The kitchen and bath are 350 sf total of the 672 sf basement. I dont want to make adjustments for the comps baths on the room count line and also a functional utility adjustment for the issue with the kitchen and bath in the basement as this would be "double dipping". I am basing my functional adjustment on ???? Since I have no matched pairs to formulate an adjustment. Am I over thinking this??

 

[J Grant]

Doing an appraisal for a conventional purchase. SF home, 672 SF built in 1900. The only kitchen and bath are below grade in the basement. No, I do not have any comps going back 2 years with this situation. Due to FNMA/ANSI I cannot include those rooms in room count or GLA. Soooo, my grid shows 4/2/0 for the subject room count.
The kitchen and bath are 350 sf total of the 672 sf basement. I dont want to make adjustments for the comps baths on the room count line and also a functional utility adjustment for the issue with the kitchen and bath in the basement as this would be "double dipping". I am basing my functional adjustment on ???? Since I have no matched pairs to formulate an adjustment. Am I over thinking this??

If over half the house (including the kitchen and bath ) is below grade, why are you saying it is 627 sf?

If 350 is below grade, the house is 277 sf - above grade per ANSI, yes or no.

This is a POS tiny house and unless it has added value from being near a beach or a city in demand - IMO it does not need an adjustment for the functional utility of the kitchen and bath in the basement - just appraise it on the lower range of value and explain why

 

[Elliott]

Sounds like a tough assignment. You could provide a supplement grid sheet doing it the way 'the market' would see the property. You seem to be on the right tract. As they say, "You can't make a silk purse out of sow's ears.'

 

[Joe Flacco]

Click on all the properties on the street and see if any of them are configured the same way. We have houses like that in Georgetown and they are like that because when they were originally built, the street was at the lower level.

 

[Terrel L. Shields]

for the financial utility of the kitchen and bath in the basement - just appraise it on the lower range of value and explain why

WTH is 'financial utility"?

Go back to the last sale of the property and compare it with the comps from then to see if it actually suffered a functional obsolescence before. If not, it probably doesn't now. I'd use the gross SF to compare to the gross SF of the comps. Just because ANSI slash FNMA wants to call one GLA and one not, does not mean I cannot adjust the SF based on heated SF and not on GLA.

 

[BRCJR]

Would the ANSI exception code be permissible in this situation?

 

[J Grant]

WTH is 'financial utility"?

Go back to the last sale of the property and compare it with the comps from then to see if it actually suffered a functional obsolescence before. If not, it probably doesn't now. I'd use the gross SF to compare to the gross SF of the comps. Just because ANSI slash FNMA wants to call one GLA and one not, does not mean I cannot adjust the SF based on heated SF and not on GLA.

lol, I changed it to functional utility - it turns out the AI spell check stinks and, like so much of AI, it can be correct as far as a task (spelling), yet it picks the wrong word and throws everything out of whack.

 

[J Grant]

WTH is 'financial utility"?

Go back to the last sale of the property and compare it with the comps from then to see if it actually suffered a functional obsolescence before. If not, it probably doesn't now. I'd use the gross SF to compare to the gross SF of the comps. Just because ANSI slash FNMA wants to call one GLA and one not, does not mean I cannot adjust the SF based on heated SF and not on GLA.

If we sign an appraisal saying we used ANSI, then our reported SF for the GLA of the subject is what ANSI defines ( above grade ) - regardless of whether an area is heated or not.

If comps do not report sf using ANSI, have t find out to the best of our ability and adjust. Even though not above grade SF per ANSI, the basement has value and that is the challenge of the assignment to find it and support it.

 

[Shawangunk RE]

If over half the house (including the kitchen and bath ) is below grade, why are you saying it is 627 sf?

If 350 is below grade, the house is 277 sf - above grade per ANSI, yes or no.

This is a POS tiny house and unless it has added value from being near a beach or a city in demand - IMO it does not need an adjustment for the functional utility of the kitchen and bath in the basement - just appraise it on the lower range of value and explain why

The above grade SF is 627 sf, its on a full basement, the finished area of this basement (kitchen,bath) totals 350 Sf, the rest is unfinished area. No its not near anything nice, the reason it had several offers over list is because its the only livable house in the area priced under $200,000.

 

[Surf Cat]

I would do what Terrel suggests in post #5 as well as do what Joe Flacco states in #4. Hopefully, you'll find a home that's configured like the subject, find out when they've sold, and compare them to sales with above grade kitchens and baths to find out if there's a market perceived functional difference.