Walk Out

[Terrel L. Shields]

1,000 SF finished basement here would generally exceed $16/SF, and would likely be about half the SF cost of the Gross Living Area

 

[LiveJoy]

I would discuss with the buyer that the appraiser obviously forgot about the finished basement and the appraiser should be called and asked to correct his mistake.

I sent a certified letter to the appraiser pointing out the mistakes. The Appraisal company called me to say that I'm not allowed to contact Appraisers because I'm the seller. The Appraisal company also told me that their appraisers do not make mistakes.

My immediate response was to write a letter showing the mistakes and get it to the Realtor for the buyer. The Realtor brought this to the attention of the lender but nothing happened....except the lawyer for the buyer contacted my lawyer and wanted to know if I would be flexible with my price. The result of this low appraisal is that my buyer is now jittery.

 

[ucbruin]

I have seen many basements that are finished and the value far exceeds $16,000. If the basement doesn't add any value then the appraiser should have stated so in the report. If the appraiser did not address this issue then I think the report should be clarified.

The person who ordered the appraisal needs to get clarification as the report is not complete.

I seem to recall you stating you make no adjustments for FP, 3 vs 4 bedrooms and basements.

Do you really believe that a finished basement is going to increase a condo comp with a closing price of $205,000, 7%-8%?

 

[LiveJoy]

I would discuss with the buyer that the appraiser obviously forgot about the finished basement and the appraiser should be called and asked to correct his mistake.

I sent a certified letter to the appraiser pointing out the mistakes. The Appraisal company called me to say that I'm not allowed to contact Appraisers because I'm the seller. The Appraisal company also told me that their appraisers do not make mistakes.

My immediate response was to write a letter showing the mistakes and get it to the Realtor for the buyer. The Realtor brought this to the attention of the lender but nothing happened....except the lawyer for the buyer contacted my lawyer and wanted to know if I would be flexible with my price. The result of this low appraisal is that my buyer is now jittery.

Add $16K for a finished basement?

No way.

I find it curious that folks are even commenting about it in a manner that makes it appear it would/could/should/might/maybe/etc. add $16K to the appraisal.

Livejoy, don't call the appraiser.

On the Appraisal report shouldn't the "Basement and Below Grade Area" have a code that indicates that it is a walk-out basement? i.e. WO ?
Also, if a below grade room is finished, shouldn't it read: RR for recreation room? Mine does say that, but so does the comparable that is unfinished. Down at my Municipal building, I have a certified "Recreation Room" that has been passed by the building inspector and that has resulted in my taxes being increased. Does that count for anything? I really want to know if I'm living in reality here. It adds over 600 square feet of carpeted, sheet rocked, heated, cooled and lighted area of living space to my home. I know it is not the same value as upstairs but do you really think it adds no value at all?

 

[Carlos Danger]

Well if they don't make mistakes, there is not a lot you can do about it. What area are you in?

 

[LiveJoy]

Is there any adjustment for the basement differences?

No. On the comparable chart they appear as if they are the same. How can a basement that is fully underground with those small windows and no exit and not patio be the same value as a partially below grade, finished, walk-out basement with a covered cement patio? Common sense tells you they are completely different. One feels like a tomb, he other is a sunny, above ground feel. My condo is built into a hillside. The ceiling is high, it's bright. Besides, I paid extra for a walk-out basement when I built it because it's so much better than a below ground basement. I kept a grand piano down there, large screen tv, reclining furniture.... No steps to bring items in...just through the sliding doors.

 

[bnmappraisal]

I sent a certified letter to the appraiser pointing out the mistakes. The Appraisal company called me to say that I'm not allowed to contact Appraisers because I'm the seller.

Maybe they should have worded it better, but basically this is true. If the appraiser's client is the buyer and the intended user(s) is/are the buyer(s), then the only person/people the appraiser can discuss the report with is the buyer, unless the buyer gives permission to the appraiser to discuss it with someone else.

I'm not saying the appraiser did or did not make mistakes, but I will agree that the appraiser cannot and should not discuss the report with anyone who is not an intended user. This is just something we have to follow in our "rules/regs" if you will.

 

[LiveJoy]

Well if they don't make mistakes, there is not a lot you can do about it. What area are you in?

I said that "tongue in cheek". Of course they make mistakes! The appraiser made about 5 or 6 mistakes on my report. I'm from YOUR area. The lovely Garden State of New Jersey.

 

[JTip]

Add $16K for a finished basement?

No way.

Agreed. Not at a $200k price point IN MY MARKET.

 

[Carlos Danger]

I know you are in NJ. If you are a little more specific, maybe I can help. I'm in Monmouth County.