What constitutes a basement Is there a below grade SF threshold

[NJ Valuator]

Following the standards you would call it below grade. I always go against the standard when the entire dwelling or unit is partially below grade. Regardless of how its reported on the grid I account for the market reaction (or lack thereof).

will you still be following that way of thinking come April?

 

[NJ Valuator]

If you cant stand in it its not a basement and its just on raised foundation of some sorts.

I agree completely. I also can only think of a very few homes I have appraised in 28+ years that would cause any kind of "problem". But they were a "problem" before this requirement was put in place. So as far as I am concerned. Nothing has changed.

Apparently you do not have many Bilevels or Split level in your states.

 

[Dublin ohio]

@NJ Valuator said:
Apparently you do not have many Bilevels or Split level in your states.

They are actually quite common is some of my areas. We also have 5 level splits. Up until this new requirement. You could depart if necessary. But you had to be consistent and compare apples to apples. Now I will just call that partial below grade area a finished basement and the same with the comps. Still comparing apples to apples. Just slicing them differently

 

[NJ Valuator]

Due to the way the ground is graded, about 4 inches of the front right side of this house is below grade. The rear is fully at grade and the left side is at grade. Because this one right side is below grade by 4 inches, the entire level is now to be called a basement even though the market and municipality does not recognize it as basement?

If the municipality does not recognize it as basement, then the municipality is not using ANSI standards. We have to now redetermine the comparables GLA's to meet ANSI standards. This is not always going to be easy especially if the appraiser does not have access to the comparables building sketch.

In the previous selling guides, we were allowed to deviate in order to be consistent with the way the comparables were measured(see attachment). This paragraph has been removed from the current issue of the selling guide. Now we have to do the opposite so that the comparables meet ANSI standards. Can you imagine the amount of revision requests we are going to get when the "reviewer" says that the GLA of the comparables I reported does not match public records?

In the photo of the house provided, would using GXX001 option be applicable in order to include this 4 inches below grade area as being part of the GLA?

P.S. Let me know if you are able to see the attachments that I posted. I cannot see them on my end.

 

[JTip]

A basement is the area within a foundation. A foundation supports load bearing walls and floors.

Is the 1st floor area in the OP's question constructed as a foundation or wood framed sitting on a slab?

A foundation (be it cinder block or poured concrete, etc) with 1" of dirt on the back wall would be a basement, while a wood frame sitting on a slab with 1" of dirt on the back wall would be an bad design or earth movement and shouldn't be there.

 

[NJ Valuator]

A basement is the area within a foundation. A foundation supports load bearing walls and floors.

Is the 1st floor area in the OP's question constructed as a foundation or wood framed sitting on a slab?

A foundation (be it cinder block or poured concrete, etc) with 1" of dirt on the back wall would be a basement, while a wood frame sitting on a slab with 1" of dirt on the back wall would be an bad design or earth movement and shouldn't be th

 

[residentialguy]

Don't be silly. It's a ranch. Main level is GLA just like all the ranches you're going to compare it to. That dirt line will make a bit of difference. Explain the departure from strict ANSi standards.

 

[Dublin ohio]

In the photo of the house provided, would using GXX001 option be applicable in order to include this 4 inches below grade area as being part of the GLA?

I suppose you could possibly use it. But why? Just call it a finished basement or sub grade level or whatever and compare it to similar homes. In my area it is a bi level. No market difference if it is at grade, 4" below grade or 2 feet below grade They all have the split entry and they all look and function alike once you are inside.

 

[glenn walker]

This is how stupid people can get - I was also a contractor in my early years and now we are down to TWO Inches --This entire thread is BS or the OP is insane or just trying to create situations that do not happen in the real world. This makes me real angry as its just not what an appraiser would even know - How do I know if its 2 inches ? Its Total BS .

 

[residentialguy]

Due to the way the ground is graded, about 4 inches of the front right side of this house is below grade. The rear is fully at grade and the left side is at grade. Because this one right side is below grade by 4 inches, the entire level is now to be called a basement even though the market and municipality does not recognize it as basement?

If the municipality does not recognize it as basement, then the municipality is not using ANSI standards. We have to now redetermine the comparables GLA's to meet ANSI standards. This is not always going to be easy especially if the appraiser does not have access to the comparables building sketch.

In the previous selling guides, we were allowed to deviate in order to be consistent with the way the comparables were measured(see attachment). This paragraph has been removed from the current issue of the selling guide. Now we have to do the opposite so that the comparables meet ANSI standards. Can you imagine the amount of revision requests we are going to get when the "reviewer" says that the GLA of the comparables I reported does not match public records?

In the photo of the house provided, would using GXX001 option be applicable in order to include this 4 inches below grade area as being part of the GLA?

P.S. Let me know if you are able to see the attachments that I posted. I cannot see them on my end.

That house is a split entry. The top level is GLA and the lower level functions as a basement which is identical to all the other splits that are below grade. Pull the house out of the ground and compare to the other houses as you pulled out of the ground. If there is any market reaction to the dirt line variance, (which I have never found to be true)... but if there is, make the appropriate adjustment. A split level on grade doesn't make it a 2 story with double GLA, just as a ranch below grade doesn't make it all basement and no GLA.
The whole idea behind ANSI is to help with comparing the house to other similar functioning houses of similar size. Sometimes ANSI does not work correctly in all situations, so FNMA allows you to depart from ANSI so that you are comparing apples to apples.