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unusual basement

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Debra

Thread Starter
Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Hello

I'm wondering if there is a percentage of the above ground $ per square foot that can be used for a basement? Thanks! :?:
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
Debra --

Not in a true percent that's common to every appraisal report.

In the average home, I find for an unfinished Basement, it works out to somewhere from about $12.00/sqft to $25.00, or around 1/8 to a 1/4 of the 1st floor (Main Floor) GLA rate.

Not very helfpul, I know. If you give us an actual problem, you might just get a more meaningful answer through the trial and error of our Forum discussion.
 

Debra

Thread Starter
Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Hello!

I'm looking to appraise a home that is around 4000 square feet and has a 2200 square foot basement. The above grade I figure to be worth about $100 a square foot...does that help? Thanks! :?
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
You did not say if the basement were finished or unfinished. If it is finished, is it finished so as equal to the above grade area in quality. All of these factors have an effect on contributory value. Basements with no finish, some low quality finish or with equal quality finish to above grade levels all have a different utility in a single-family dwelling. I doubt that a simple percentage is appropriate for this calculation.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Matched pairs analysis...darlin! You can extract the adjustment from the market. Each market will be slightly different. Here in the median price range the adjustment is from $15 to $25 a square foot. Good luck!
 

Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
Market data is the best way to go. You shouldn't be looking for an amount or percentage that you can use in every instance. The next house will be different. However, if you don't have good market data from current sales there are a few other things that might help you. One of them is the cost approach. Base on the economic theory of substitution, no one will pay more for the basement space than it costs to build. If it's a fairly new home, or if you have good market data on depreciation, then this approach can give you a starting point for your adjustment. Of course, if you have good market data, you should go by that, but basements are tricky. It is not too unusual to adjust one comp at a higher rate per square foot than the others if the finish is better quality. Past experience can be a real help here. If you don't know for sure, you shold consider getting some help from one of your friendly competitors.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Definitely rely on available market data. I've seen basements that are a detriment to value, not an addition to value. Use paired sales if you've got them. If there was a magic figure, they wouldn't need us. Hey! That's right! The Lenders say they don't need us.
 

slacker

Junior Member
Joined
Feb 20, 2002
Matched pairs analysis...darlin! You can extract the adjustment from the market. Each market will be slightly different. Here in the median price range the adjustment is from $15 to $25 a square foot. Good luck!
Just curious. How do you match pair a finished basement? Are you inspecting the basements of your comps? I’ve seen finished basements with 20k put into a below grade bathroom. The MLS had it as a finished basement with luxury bath. Leaves a lot to the imagination if you haven’t actually seen it.

How are you comparing one basement to another in terms of cost per sqft?
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Debra;
You asked; "is there a percentage of the above ground $ per square foot that can be used for a basement" :?:

Your question is generic at best - you need to rephrase your question as there is limited information to what you ask :? Please clarify what you need to know.

8)
 

Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
Basements are a drag, all right. The MLS never has enough good data. However, I am pretty familiar with my market; after you've been in a bunch of them you can get pretty good at predicting. You still can't do it without talking to the realtor or someone else who knows what's down there, though. After doing that, I can usually match them up pretty well. Most of the time, the construction above grade is tell-tale for the quality of what's down-- there are exceptions though. The short answer is that you find out what's there by talking to someone who knows, then you can do it. Basements almost always call for some subjectivity though. So what's new? You can't always tell what the interior quality of a comp is upstairs either. We should be appraisers, not number crunchers. They are paying you to develop an opinion, not just to do math.
 
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