UAD Basement and Basement Finish question

[residentialguy]

Below grade is below grade...it's really stupid (in my opinion) to deviate from this. Lets all get on the same page and eliminate the confusion. First line of below grade adjust for size difference (SF). On line 2 adjust for the finished area (% finished).

So a 1500 sf 1.5 story, full basement with the grade built up 1' above grade on one side is no longer a 1.5 story...it's a 500 sf ranch with 1 bedroom above grade and a 2 level 2,000 sf basement???

All those mountain homes are all below grade?

 

[sandpiperapp]

So a 1500 sf 1.5 story, full basement with the grade built up 1' above grade on one side is no longer a 1.5 story...it's a 500 sf ranch with 1 bedroom above grade and a 2 level 2,000 sf basement???

Only if it is a split. :icon_lol:

 

[JasonHaskell]

How about letting us appraiser decide what is living area and what is not based on the actions of buyers in our markets and then let us report it however make the most sense? There are plenty of walkout daylight basement style homes in my area where the basement is the same quality and finish as the main floor and buyers treat this area equally with the above grade area, no discounts. So if a buyer would view a 2800 sf 2 story as equivalent to a 2800 sf daylight basement, why should I not be able to make that adjustment on a single line? Doing it any differently is not mirroring the market participants and somewhat misleading.

 

[Delta85]

It has always been a hassle figuring out basements in my area. SF breakdowns are not given by all assessor offices, particularly finished areas. And realtors are minimal help. They rarely if ever know the actual SF of the basement or its finished area. I have a comment I include in all my reports that my due diligence includes speaking with both realtors and town officials to determine these items but, since both can not be relied on to either know or report these items I estimate based on my experience in the area and with the homes in question.

 

[George Ellerman]

I was wondering if anyone else has problems with filling out the comparable square footage below grade and the square footage of finish in the comparable's lower level. I only have 2 counties that report the basement square footage and for the most part, other counties in the area don't have adequate building sketches on file to determine an actual square footage of the basement. I had 1 assessor recently tell me this: If its a ranch, go with the above grade square footage, a 2 story, divide the total reported GLA by 2 and so forth. Most modern construction in my area has garages built in to the first level and so if you are doing a 2 story home the 2nd level covers some or most of the garage level above grade so the 1st level is actually smaller than the 2nd floor. (Im sure this is common everywhere now a days). Even when you are looking at a ranch, the comparables GLA would include such things as bay windows or bump outs which do not extend into the basement. How do you all come up with an acurate basement square footage in these situations?

In addition, how in the world do you develop an accurate SF measurment for rooms below grade for the comparables? Some agents in my area just plainly state the rooms below grade without measuring them (our MLS system does not include any 1/2 baths or full baths in the agent calculation grid, ie rec room 19x30 when they display it for listing purposes). Some of the agents report a total living area, which always seems to magically be a round number, ie, this home has a total living are of 3700SF, when the above grade GLA is something like 2094 SF. And lastly, some agents state that there are rooms below grade and when I actually look at them for purchases the lower level has painted concrete walls and rolled carpeting (not permenantly installed) without a finished ceiling. I was one of those appraisers that prior to the UAD, I would put Full Basement and the next line I would put Part Finished (without describing the rooms below grade for the comparables)

Why would Fannie Mae or whomever want an exact SF of rooms below grade when I have not viewed the comparables interior or measured it professionally for that matter?

Heated space above grade= gross living area
Area below grade=Basement (With % of finish noted)
Grade of finish for the basemenrt area may be similar to the above grade but it is still a finished basement.
Regional standards for what constitutes GLA may vary across the country but,IMO, if you follow the above you should be ok.
I would never rely on the data or measurements of realtors or tax assessors.