Standardized Property Measuring Guidelines

[djd09]

I'm curious if we will be able to use the exemption code “GXX001 –” for split levels, as in my market area the lower level is normally considered part of GLA, with an actual basement under the main level. In the FNMA guide though it only mentions an example of a dwelling where 100% of the GLA would be below grade. What if 33% of the GLA (as expected by market participants and county records) is partially below grade?

do what the market tells you. ansi is junk

 

[Dublin ohio]

The best way to deal with split levels in a market where the real estate agents combine all the finished area is not to change the way the dwelling is measured and reported.

Real estate agents around here sometimes include finished basements in their advertised living area. I do not use MLS as my primary confirmation of GLA. County records in my areas separate the above and below grade areas. So easy to grid partial below grade as finished basement.

 

[Trenton]

Real estate agents around here sometimes include finished basements in their advertised living area. I do not use MLS as my primary confirmation of GLA. County records in my areas separate the above and below grade areas. So easy to grid partial below grade as finished basement.

so if you count the partially below grade lower level as finished basement, what do you do about the actual basement?

 

[Trenton]

The best way to deal with split levels in a market where the real estate agents combine all the finished area is not to change the way the dwelling is measured and reported. The best way is to measure and report the physical nature of the subject, per standards, on the 1st page of the appraisal form. Then, in the grid, you override your software's automatic transfers and report it the way it's reported by your MLS (or whichever data source you are using). You then add a comment explaining that's what you did and that you did it becuase it's common practice in the area for split levels (split foyers too) to be marketed that way. Your report then accurately describes the subject AND compares apples to apples in the grid.

If you don't like that, then you can do whatever you have to do to break out the basement from the total square footage of the comparables.

This is what I've been doing, I'm just concerned by FNMA's new wording on the ANSI standards, as they are not clear if they are OK with this method.

 

[Zoe]

I can't get you all as experts. Take yourself as professional and put it in a lender, realtor, GSE, homeowner, buyer, seller, investor shoes.

Do you want to know GLA and other contributing factors to "market value" opinion? Simple answer would be yes. All parties would agree.

You and I on the other hand are the professional that analyzes it all.

 

[Trenton]

do what the market tells you. ansi is junk

I'd agree with this, but I'm not the one making the rules...

 

[shrubberyvaluation]

so if you count the partially below grade lower level as finished basement, what do you do about the actual basement?

They are both below grade. Adjustments can get messy and need explanation if the market values the section of below grade differently than the lower section below grade. They also may be of different quality.

 

[Zoe]

Okay, realize how much data GSE's have on prior appraisals and current appraisals. Does a light bulb go off somewhere upstairs?

 

[Dublin ohio]

so if you count the partially below grade lower level as finished basement, what do you do about the actual basement?

It is all basement. On the occasion that the very lower level (4 "level" split) is finished. I cross that bridge when I come to it and explain. Which is not very often. Easier in my opinion. To address the one off occasionally. Instead of using the exemption and explain every time I have a split level. We also have splits with 3 "levels". With 3rd level partially below grade. No additional "basement".

 

[Zoe]

I'll be honest. If a light bulb don't go off upstairs on the amount of data that GSE's can compare?


You need to seek other employment.