USPAP -- Below Grade

[Couch Potato]

Lawrence,

What you are refering too is how to measure a condo, it clearly states before and after that comment, that for one-family properties (Including condos, puds, and co-ops) that only fully above-grade sq ft should be counted.

That is a debatable interpretation. I view the "In all other instances" that starts the next sentence to separate of the rest of the paragraph, not just the remainder of the next sentence. Grade level is an exterior concept and would seem applicable only to someone measuring on the exterior.

For units in condominium or cooperative projects, the appraiser should use interior perimeter unit dimensions to calculate the gross living area. In all other instances,

The key phrase in the Fannie Guidelines is:

The appraiser may deviate from this approach if the style of the subject property or any of the comparables does not lend itself to such comparisons. However, in such instances, he or she must explain the reason for the deviation and clearly describe the comparisons that were made.

 

[Thomas Fiehler]

MARKETVALUE-Condos are measured based on INTERIOR dimensions. As such, ANSI guidelines do not apply to them.

 

[Terrel L. Shields]

I cover don't differntiate between the upper and lower levels of Bi Levels (Split Foyers), like they do with a more traditional basement. Remember these are guidelines, not hard and fast "rules". As long as you explain what your doing and why, I think its permissible to inlcude the lower level in the GLA for a Bi-Level. Sometimes you have to use common sense.

Fannie never claimed "common sense" was necessary, only "compliance".

If the client could read your report and not know that part of the house is below grade

Look at the photos...do they have any sense to understand them?

A "bi-level" in our area will typically not have any part of any level "below grade", i.e.- it is all above the ground. The site is bermed about 40" and the entry level front walks into a living room. You go 4 steps down to the bedrooms or kitchen or whatever and walk out on level ground in the back door. Or, you walk 4 steps up to bedrooms. I do not treat these as "basement". The foundation is above "grade", i.e.- surveying "grade".
9 of 10 of our local realtors lump finished basement in with GLA...go figure.

Below - one is a one story with finished basement. Note basement wall exposed is plain concrete..ignore for the moment the Doberman. He liked me. In fact, I think he thought I would be delicious. The other is front of condo and the rear is upper level 4 steps up, lower level 4 steps down, note that there is an enclosed crawl space below the lower level. If you counted only inches above or below, then the first floor would have 1 room. The "basement" would have the kit and master bed. Bedrooms upstairs. In fact, I call the entry and sunken portion first floor and the bedroom level 2nd floor...not that it mattered, this was narrative and not a fannie mae report.

 

[Couch Potato]

Fannie never claimed "common sense" was necessary, only "compliance".

Actually the Fannie guidelines do indicate common sense is necessary.

 

[Caterina Platt]

Here's mine. Obviously, from the front and rear photos, one can see there are some grade differences. To have put this all on the above grade living area would have been a dead give away for a Fannie sticker reviewer.

Can you imagine an underwriter not wanting to count the lower level on this place? This one seems like a prime example for the common sense approach. 'The appraiser considered all living area as above grade per market data and support. See photos and sketch for further information. No comparables in the immediate area of equal design were found, however an active listing by the same builder and of the nearly identical floorplan is illustrated.'