The Correct Way To Measure Below Grade Finish?

[Mike Garrett RAA]

I solved the problem IN MY MARKET by using an adjustment factor for below grade that approximates the adjustment I use for above grade. My market recognizes below grade as living area even though we don't for appraisal purposes. It's one area where I get the most questions from buyers or home owners. "why did you say our house is only 3 bedrooms and two baths when we have 5 bedrooms and three baths?". Because I accounted for the below grade on a different line...sigh!

My market research recently concluded an adjustment of, say, $30 an SF is appropriate for GLA and, say, $15 an sf for unfinished basement and $15 an sf for the finished area. This would be for a median priced residence and also varies by style or design.

 

[Mr Rex]

I use your measuring method. I don't believe ANSI discusses below grade but you should check.

ANSI says "Measure to exterior surface of walls where below grade." Figure 3, page 8 of ANSI Z765-2003.

 

[Mike Garrett RAA]

We don't rely on ANSI here.

 

[Ariba]

"why did you say our house is only 3 bedrooms and two baths when we have 5 bedrooms and three baths?". Because I accounted for the below grade on a different line...sigh!

Because the basement bedrooms in older homes are 80% "non-conforming"

 

[Meandering]

80% of statistics are made up

 

[CANative]

ANSI says "Measure to exterior surface of walls where below grade." Figure 3, page 8 of ANSI Z765-2003.

But FNMA says if any is below it's all below.

 

[jay trotta]

But FNMA says if any is below it's all below.

Agreed 100%, if FNMA is/are the Guidelines I fail to see the need to go elsewhere, they are the "buck stops hear folks". Actually when you think about it, the envelope provides the intended result, per FNMA; the carbon footprint is based on the envelope; the CAC is reliant on the envelope; Solar Flow is based on the envelope and I don't know Who, ANT SI ........is or if she is applicable.

 

[CANative]

IMO, this issue is the biggest "it depends" item in the development and reporting of an appraisal bound for the GSEs.

 

[Peter LeQuire]

80% of statistics are made up

The other 20% can't be proven.

 

[Mr Rex]

But FNMA says if any is below it's all below.

So does ANSI.