Residential Elevator

[Laughing Heir]

Background:

Appraisal for financing, 1004 URAR, intended user is lender; single-family residence; built in 2000; typical tract home construction, no bells or whistles.

Subject property has an elevator that accesses the basement, 1st, and 2nd floors. The elevator is intended for a disabled occupant and is customized for a wheelchair. There is a shaft constructed at the rear of the dwelling, see attached photo. The interior of the elevator is akin to every Otis elevator I've rode in.

Question:

Would this be treated as GLA for the first and second levels?

Thanks in advance for any opinions.

 

[loug56]

In my opinion, I would count it similar to a stairwell. I would count the area for one floor (1st) and deduct it as "open to below" area for the 2nd floor. It is an interior area and offers direct access and somewhat similar finishes (I assume). The area is less of a concern to me as it is minimal area. My concern would be WHERE DO I FIND A COMP? I already here the underwriter's questions and "wants". Good luck with your market derived value for the elevator!

 

[jay trotta]

basically if it has been calculated as the heated & cooled area within the building, it should be part of the living space. in our area, the assessor's add it to the GLA, and comparables would be similar, no guessing as to the size in the comp.

old school FNMA guideline; measure the exterior and whats inside is the GLA for both subject & comp - makes life a bit simpler, understanding the comps.simpler and explain what and why you did what you did.

We have in our area, what is known as a "Raised Ranch" style dwelling, it has also been known as an "Embankment Ranch" - some offers finished area's below grade, some Agents add this area to the overall SF to present a larger dwelling. Then it is necessary to either, explain what they did and why or separate out the main living area from the finished lower level. Either way, it needs to be explained.

Good Luck

 

[Riick]

FYI.. just did a townhouse style home w/3sty automatic electic elevator.
(House had no basement so same # stops, but yours has cost to install below grade level)
Asked the Builder what the elevator cost him: about $23,000 for the device + of course installation.
Does cost = value? Not often.

 

[Calvin the Airedale]

I've encountered homes with elevators about 20 times in the course of my career. Most often these are upscale or luxury class homes but sometimes, like yours, more vanilla track homes where the intention is for handicapped access. The square footage of the elevator itself is a minor concern. The contributory value, if there is a contributory value, will be more difficult to prove for lack of comparisons. My experience is that the addition of an elevator to a multi-story home makes the market appeal of that home more similar to that of a single story dwelling, especially to occupants wanting one floor access and mobility, ie seniors, handicapped and old farts like me. Elevators are expensive. Compare that expense to the cost differential of similar sized multi-story and single story housing.

The scarcity of this amenity and the lack of paired sales means your judgment and experience will likely be the primary basis for any adjustment on this feature. Good luck!

 

[Terrel L. Shields]

The scarcity of this amenity and the lack of paired sales means your judgment and experience will likely be the primary basis for any adjustment on this feature

My take exactly. I have seen a couple of homes with it and both were large expensive homes so the actual "market" allocation is difficult to separate from the statistical noise. I do think it would add to the appeal of the property but might treat it like a pool in my market...roughly physical depreciation less a functional (overbuilt) item.

 

[Mztk1]

I count it on each level as living area.

 

[Susan Kent]

I've always counted them as GLA, whether the shaft is on an exterior wall or not as long as they are finsished and enclosed. We also have some stilt homes which have exterior "lifts" which are not enclosed; I don't include those in GLA.

 

[Laughing Heir]

Thanks to everyone for your valued opinions! I don't even want to think about measuring the market's reaction to this feature, what a nightmare.

This is plain, old, vanilla blue-collar northeastern Pennsylvania this is located in, coal country! There are only two homes in the digital history of our MLS that have even had elevators; one is a mansion and the other is a dump. At least we have an idea of how to go about calculating the subject's total living area now!

Thanks again.

Mike

 

[Mike Boyd]

As an aside, my brother had his 3 story vacation home in Hilton Head on the market for over 1 year. Not even any offers. Then he installed an elevator, raised the price by $50,000 and sold it within 2 weeks.

That market area is dominated by seniors, welathy ones, at that. They often don't care how much they spend.