The Below Grade Questions.

[cubs2win]

I am appraising a multi-million $$ home on a nice hillside lot. The attached guest quarters 4 car garage and the theater are all on the lower level. They ALL have access to the outside (walk-out). The question is how would everyone categorize it? Not all sides are below grade... Above or Below grade? I feel an argument can be made for both. USPAP states that the answer lies within what peers in the industry are doing. I am in Arizona and I know this question has been raised before. I would like some input... Thanks

 

[Liz Mura]

It's hard to say without seeing the property, but whichever way I went, I would want similar hillside properties to use as comparables. At least then you are comparing apples to apples (as best you can with million $ properties). In the homes I have seen set up that way, the lower levels were finished the same as the upper levels, all in high quality materials. It pretty safe to say the typical buyer would use the lower levels as much as the upper levels (I've seen the family room on the lower level opening up to the negative edge pool). My inclination is to include the lower level in the GLA, fully EXPLAIN your reasoning, and use similar comps.

P.S. Of course, do not include the garage as GLA.

 

[rcsone]

GBA, not GLA............

 

[MARYMCKENNA]

Actually I just did a similar hillside in Ftn Hills. The lower/ground level was not below grade. And had a range of comps with the same design to choose from. I still won't count anything below grade as GLA. It, imho, is still a basement. May be finished and wonderful, but still a basement that simply adds value.

 

[The Sheriff]

More than one way to skin a cat... Had a similar property in Vista Del Corazon in Gold Canyon in 2006.

Just looked at the report... my narrative included a comment that stated such:

"While a portion of the first floor is partially below grade based on the slope of the subject's lot, the first floor functions similarly as conventional living area. For the purpose of this report, since the multi-level comparables shared similar utility, all living area was considered above grade GLA".

The architectural blueprints identified the first level as a walkout basement... however, the market did not identify the property as such... nor did the county or local agents.