Where Does Finished Basements Count As GLA?

[Imladaris]

I got a broker friend who is doing deals in Georgia and asked if finished basements count as GLA. Says there is a bath and rec room in it.

Does Georgia recognize it as GLA? What other states is that common.

Here in California, basements are less common and are not considered GLA typically.


Thank you./

 

[bnmappraisal]

We in FL don't (generally) have basements either, but as far as I know below grade/basement is below grade/basement and NOT considered GLA (according to FNMA).

 

[Mile High Trout]

FNMA and HUD guidance says; Market standard. Follow the market standard.

In some areas we have garden level or partial basements, usually with bi or tri level designs.

Sometimes the assessor even inconsistently reports what is agla creditable, and what is not.

Agents often misprice in these areas, because they're over reliant on automatic tools.

The appraisers duty is to clean up the data, and report in a way which increases credibility of assignment results.

You 'follow the market standard' on this issue. If the majority of the market sales persons and/or the majority of assessor data records do or do not give credit for garden level as agla, you simply follow that common standard and clean up errantly reported data.

It's up to you how you report it, except that you cannot do any favors and include one home as having this credited to agla when the rest do not. Even if the basement is amazing amazing, either it's creditable to agla, or deserves a steep basement adjust. You cannot swap agla reporting away from 'the common standard of reporting', based on quality or one off designs.

 

[Mike Kennedy]

Georgia Appraisal Board's Newsletter 2012 - Article on GLA

http://www.grec.state.ga.us/PDFS/About/newsarticles/2012DECGRECRENews.pdf

The post above is merely informational in nature. It should be noted that, in municipalities where Building Ordinances or Building & Zoning Combo ordinances exist compliance with said ordinance/s MAY require compliance with ANSI standards OR other International, Federal, State, County, Town, City, Village or Hamlet B.C.s.

example: Athens County, GA

"The main building code in Athens Georgia put into use are the International Commercial or Residential Code [ICC/IRC]"
http://localbuildingcode.com/AthensGeorgiaBuildingCode

 

[Terrel L. Shields]

Below grade isn't considered GLA and in most areas I deal with, rarely brings the per SF price that the GLA will, finished or not. The exception? Lakeside property where homes tend to be two levels and almost always are finished. I still segregate it into GLA and finished basement but apply the same SF adjustment in that case.

 

[GeorgetownAP]

Just came back from a site visit -- town has it as a raised ranch with the GLA of the 1st floor (eg basement) not included - which should be correct. HOWEVER - the subject in question is really a hi-ranch and has a crawl space under the 1st floor (what the town has as basement) and fully walk-out. So, I included it in the GLA with FULL DISCLOSURE as to the whys, hows and measuring steps. Is the basement partially underground ?(not GLA in my book). As long as you disclose what and how you are determining GLA, and use the same rules for your comps - you should be ok. Sometimes it is very difficult to extrapolate out the basement (especially in my neck of the woods where every town has a different measurement criteria for what constitutes GLA). Be consistent, verify, verify, and disclose, document what you did, how and why!

 

[bnmappraisal]

Just came back from a site visit -- town has it as a raised ranch with the GLA of the 1st floor (eg basement) not included - which should be correct. HOWEVER - the subject in question is really a hi-ranch and has a crawl space under the 1st floor (what the town has as basement) and fully walk-out. So, I included it in the GLA with FULL DISCLOSURE as to the whys, hows and measuring steps. Is the basement partially underground ?(not GLA in my book). As long as you disclose what and how you are determining GLA, and use the same rules for your comps - you should be ok. Sometimes it is very difficult to extrapolate out the basement (especially in my neck of the woods where every town has a different measurement criteria for what constitutes GLA). Be consistent, verify, verify, and disclose, document what you did, how and why!

I think this is good advice. My question is, though, how do your clients accept these reports? Do they fight you regarding GLA/basement/below grade, etc?
IMO, as long as you address everything and keep everything consistent between the subj vs comps (GLA vs Basement, etc) you're probably fine, but as you state, "FULL DISCLOSURE" is a necessity I would think

 

[Dan Umstead]

As long as your comparable sale have similar square footage, the value will be the same, no matter if you call areas above grade/below grade or all above grade. Remember, true comparable sales will lead you to a a reasonable, credible value conclusion.

 

[The Warrior Monk]

The answer is "it depends." The standard finished basement that is not necessary to the basic function of the residence is likely not considered GLA. If we're talking about earth-sheltered residences, residences built into the sides of hills, etc. that may be a different story.

 

[bnmappraisal]

I really am glad I don't have to deal with these type of properties. Truly.