Split levels, UAD/CU & Below Grade Living Areas

[G-man]

I am really beginning to hate appraising split levels on the UAD 1004. In my area, there is a difference between a split level with a lower level rec room and no basement, for example, and a one or two story home with a finished basement. The local auditors office, Realtors and the buying public all treat the lower level rec room in a split level the same as the above grade areas of the home, where as the finished basement is valued differently and not added to the living area by the local auditors office. But, on the UAD forms, there is no way to adequately describe a split level home which has no basement but does have a finished below grade living area. I have to state on the form that there is a basement and that it is finished, when that is not the case for most split level homes, as they are almost all built on slab/crawl foundations, with a very few having actual basements below the ground floor area. What does everyone else do for these types of homes? I'm just curious as I get so frustrated trying to fit a square peg into a round UAD hole.

 

[Mike Kennedy]

In the Split Level Ranch example, is the LR,DR,Kit, Foyer built on slab or over a basement? In this neck o' the woods typically 2 variants:

1. from left on grade-slab att.garage, LR,DR,KIT (level1) plus Split Upper Bedroom Section - 1 Story Split Level Ranch either over Partial Slab or Partial Crawl Space under Level 1, and Partial Basement (under Level 2 BR section) - either finished or unfinished.

GLA = Section 1/Section 2 fully above grade - First Floor.

OR
2. IF Level 1 IS over a two section (under both Lev 1 and Lev 2) Basement (either finished or unfinished) - the Dwelling would still be a One Story, Split Level with LR,DR,KIT, HB (Lev 1) + 3BR, FB (Lev 2) over a full basement (either half or fully finished).

IF Level 1 is on a slab, Dwelling would be a One Story, Split Level Ranch over a Partial Basement (under Lev 2) and a Partial Slab.

GLA above grade Level 1 plus Level 2 NOT including either full / half Basement which is either fully or partially finished.

In either case - Finished Partial or Full Basement Level may have contributory value @ same or less $$ amount than the Above Grade Gross Living Area - that depends on Buyer's reaction in a specific local market.

IOW- extracted market $$ adjustment for Above Grade GLA may or may not be the same $$ amount as Finished Partial or Full Basement - in Split Level Ranches similar to the OP's photo which depicts a visible, right side, Below Grade Basement Level (plus possibly a Partial Slab or Partial Basement).

 

[residentialguy]

Split homes are a ranch cracked in half with one side raised up a 1/2 story. Foundation size is typically the GLA. 3 level splits have a partial basement with crawl space under the main level. 4 level splits have a full basement with a lower 4th level.

 

[Terrel L. Shields]

The strange things we deal with when confronted by something out of the norm. I've seen houses, especially in New Mexico and the SW where the house is a couple feet below ground level. You step down into a short, shallow hole to get to the door. Sometimes (see pic) it is only on one or two sides (and the ground is level) and the other sides may be on grade by appearance, but the floor is below ground level. I understand that a lot of adobe homes were built that way. Soo.... there is a difference between being below the grade of the ground and being a basement. We need a better definition of basement ...which in my neck of the words is referred to as the underground pool. I would guess 75% of local basements are wet to some degree.

I noticed in Yuma that some of the manufactured homes were at ground level and had a crawl space as a dug out area beneath the unit. The entire unit sit down much lower than those I am accustomed to in the Ozarks.

 

[Jo Ann Meyer Stratton]

When ground set manufactured homes are installed, an eighteen inch hole is dug into the ground, then the piers are placed and if concrete block or pretreated wood or cement board installed for the skirting. When the home is put in place the interior floor is about four inches or more above ground. Since water level in many places in Arizona can be 500-600' below ground there isn't much concern about dampness. Same way with basement homes, the lowest level frequently has an interior the same as the above ground levels because their isn't any danger from moisture. The assessor's office has the different levels available on their sketches, but the two larger counties total the levels. Builders and agents also advertise the total square footage but the breakdown is available on the assessor's property records cards.

 

[Pam Wyant]

I am really beginning to hate appraising split levels on the UAD 1004. In my area, there is a difference between a split level with a lower level rec room and no basement, for example, and a one or two story home with a finished basement. The local auditors office, Realtors and the buying public all treat the lower level rec room in a split level the same as the above grade areas of the home, where as the finished basement is valued differently and not added to the living area by the local auditors office. But, on the UAD forms, there is no way to adequately describe a split level home which has no basement but does have a finished below grade living area. I have to state on the form that there is a basement and that it is finished, when that is not the case for most split level homes, as they are almost all built on slab/crawl foundations, with a very few having actual basements below the ground floor area. What does everyone else do for these types of homes? I'm just curious as I get so frustrated trying to fit a square peg into a round UAD hole.

Count the area below grade as basement, it certainly isn't above grade. If at all possible compare to other split/bi-level homes.

 

[KenAZ]

We used to be able to treat these as all GLA. Was a lot easier, because that is the way buyers see them. There is no reason this has to be so complicated, except FNMA forms told us so. We used to be able to get exceptions in the SouthWest, but since everything has to be in a Box now, we have to do it the same as those in other parts of the country. Splits are almost impossible to appraise this way, because no one knows the actual "Basement" sf on comps. MLS and county count everything as GLA. FNMA, FHA and VA have one solution to this, they all told me to my face (At the Valuation Expo) to "Guess" the sf of the basement on split level and basements on the comps.

So guessing is more reliable than just including the lower level in GLA.

I am so happy that in a few years I will be retiring.

P.S. I have talked to a local FNMA reviewer about this and he said that you can include finished basements and the lower level of a split level in the GLA on your appraisal, as long as the subject and comps are counted consistent. The only problem is that FNMA will not admit this, and AMC and lenders do not know this.

 

[Michigan CG]

There are plenty of sales in your (our) market that you can compare apples with apples.

 

[Lee Lansford]

I am really beginning to hate appraising split levels on the UAD 1004. In my area, there is a difference between a split level with a lower level rec room and no basement, for example, and a one or two story home with a finished basement. The local auditors office, Realtors and the buying public all treat the lower level rec room in a split level the same as the above grade areas of the home, where as the finished basement is valued differently and not added to the living area by the local auditors office. But, on the UAD forms, there is no way to adequately describe a split level home which has no basement but does have a finished below grade living area. I have to state on the form that there is a basement and that it is finished, when that is not the case for most split level homes, as they are almost all built on slab/crawl foundations, with a very few having actual basements below the ground floor area. What does everyone else do for these types of homes? I'm just curious as I get so frustrated trying to fit a square peg into a round UAD hole.

 

[Lee Lansford]

I am really beginning to hate appraising split levels on the UAD 1004. In my area, there is a difference between a split level with a lower level rec room and no basement, for example, and a one or two story home with a finished basement. The local auditors office, Realtors and the buying public all treat the lower level rec room in a split level the same as the above grade areas of the home, where as the finished basement is valued differently and not added to the living area by the local auditors office. But, on the UAD forms, there is no way to adequately describe a split level home which has no basement but does have a finished below grade living area. I have to state on the form that there is a basement and that it is finished, when that is not the case for most split level homes, as they are almost all built on slab/crawl foundations, with a very few having actual basements below the ground floor area. What does everyone else do for these types of homes? I'm just curious as I get so frustrated trying to fit a square peg into a round UAD hole.

The house in the photo...the house has a basement. What's the problem?!?