Split level w/ rear walk out

[mavric1298]

So I'm a little confused, we recently got an appraisal for a refi, and it is a bit different from our original appraisal on the house. We have a split level, with a rear walk out at grade, and a garage on the front at grade, with maybe only a couple inches "below grade" on the uphill side. The first appraisal had it all as living space, and the new one has it as a basement, valued at half of the other parts of the house.

Should it really be classified as basement if it walks out both front and rear at grade, and does it make sense if not and classified as a basement that the value would be halved per sq/ft?

And since I'm a newb i can't post links but here's the house if you copy and paste www.redfin.com/WA/Seattle/4825-S-Othello-St-98118/home/22428345#photoSlideShow

 

[Pittsburg_22_m]

Most typically consider a level to be below-grade if any portion of it is below-grade—regardless of the quality of its “finish” or the window area of any room. It may vary by what is customary to a particular market. Looks slightly below grade from the one picture with a window rather low to the ground. However, I can only assume that from that one picture so it's difficult to say for sure in what I would consider it.

Are the comps "apples to apples" is the real question that matters.

 

[Meandering]

This is getting to be a weekly question.

If any portion of the level is below grade, then the whole level is below grade.

Here is the ANSI standard for measuring a house, including what is considered above and below grade.

http://www.usamls.net/vicksburg/uploads/ansi2003sqftmeasurementfororientation.pdf

Hope this answers your question, but should provide a new question about the initial appraisal.


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[mavric1298]

The appraisal seems to be all sorts of out of wack. The 3 comps all sold over 6-12 months ago, 1 of them short sale (we found 3 sales in the last month within a mile, don't get why old sales were used), our market listed as falling (+16% year over year with a shortage of available homes and no short sales within 2 miles), and came in 40 under what the state assessed it at just a few months ago, so I don't trust anything on the report as our state assessments are known to be very conservative and under market value by a significant amount.

Yes, that windowed room is a couple inches below grade on that upper side...but the original appraisal lists it as gross living area (new build), which is what confuses me. It's finished the same as the rest of the house, radiant heat, etc. I mean is it to the point of moving 3" of soil from that portion of the house would reclassify it as GLA if its supposed to be basement now?

 

[Mr Rex]

The original appraisal was wrong.

 

[HF Mudd]

I don't think treating the level in question either way is right or wrong, as long as the appraiser treats all the comparables in the same manner as the subject. An appraiser is not obligated to use ANSI standards.

The real question IMNSHO is how would the MARKET react to the space in question. If the market treats the space as GLA, then the appraiser should do so and EXPLAIN that's why he/she did so.

Based on the photo provided, if the property was in markets that I cover the lower level would likely be treated as basement area.

 

[Vermonter]

Based on the photo provided, if the property was in markets that I cover the lower level would likely be treated as basement area.

Same here. BTW, it looks like a very cool house.

 

[residentialguy]

What does the lower level act like. Typically the kitchen and dining area are on the main floor and the basement is below that....usually with a family room, extra beds and bath, (if it's finished) and utily room. Is that your setup?

Remember, the value of your house is the most probable price your house would sell for on the market, regardless of what you call the lower level. It's not worth less because the 2nd appraiser calls it a basement.

 

[sandpiperapp]

I don't think treating the level in question either way is right or wrong, as long as the appraiser treats all the comparables in the same manner as the subject. An appraiser is not obligated to use ANSI standards.

The real question IMNSHO is how would the MARKET react to the space in question. If the market treats the space as GLA, then the appraiser should do so and EXPLAIN that's why he/she did so.

Based on the photo provided, if the property was in markets that I cover the lower level would likely be treated as basement area.

I agree with you on everything but the last statement.

I cover Queens also, and I think a typical buyer would consider the first level, as shown in Redfin picture, to be living space and value it as such. Kind of like the brownstones in Brooklyn where the garden level is one or two steps down. Most buyers consider it and value it as living space.

Regardless of how the space is described, I agree with you that the market's reaction to that space and consistency in reporting is the key.

 

[mavric1298]

I agree with you on everything but the last statement.

I cover Queens also, and I think a typical buyer would consider the first level, as shown in Redfin picture, to be living space and value it as such. Kind of like the brownstones in Brooklyn where the garden level is one or two steps down. Most buyers consider it and value it as living space.

Regardless of how the space is described, I agree with you that the market's reaction to that space and consistency in reporting is the key.

So he didn't use split levels as comparisons so he knocked 45 a sq foot off of our "basement" vs the comparables which were equal in sq ft. if it all was GLA.

It's got a full bath, a closet under the stairs, a bedroom, and an office that walks out level to the back yard. Main level is two living rooms and an open kitchen and powder room, and the upper is the master with private bath, and another full guest/bath.

We asked our real estate agent to help us look for new comps, and everything was over 60-80k higher. We found a couple "3 story" that had the same basic layouts other then the 3" of below grade, and those were the same amount above ours as well

Pic links (including one panorama that's a bit dizzying)

Thanks again guys, we really have no idea about a lot of this!

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