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SandShark5
Long may you run
Premium Member
join:2000-05-23
Santa Fe, TX

1 recommendation

SandShark5 to XXXXXXXXXXX1

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to XXXXXXXXXXX1

Re: Appraisals and Finished Basements

Does the basement have a walk-out exposed to grade?
quote:
A: Usually below grade space will not be counted in the square footage as long as the walk-out is below grade or non-existant. Finished basements with walk-outs will definitely add value versus a basement without a walk-out however.

Only basements with a walk-out exposed to grade level on one side can be included in a home’s square footage. Consider this when calculating your comp values but remember the home’s value will certainly be increased by the additional living space regardless of the walk-out.

Read more: Should A Nicely Finished Basement Count In The Price/Square Footage Of A Home? | REALTOR.comĀ® Blogs

»www.realtor.com/blogs/20 ··· -a-home/
XXXXXXXXXXX1
Premium Member
join:2006-01-11
Beverly Hills, CA

1 edit

XXXXXXXXXXX1

Premium Member

said by SandShark5:

Does the basement have a walk-out exposed to grade?

quote:
A: Usually below grade space will not be counted in the square footage as long as the walk-out is below grade or non-existant. Finished basements with walk-outs will definitely add value versus a basement without a walk-out however.

Only basements with a walk-out exposed to grade level on one side can be included in a home’s square footage. Consider this when calculating your comp values but remember the home’s value will certainly be increased by the additional living space regardless of the walk-out.

Read more: Should A Nicely Finished Basement Count In The Price/Square Footage Of A Home? | REALTOR.comĀ® Blogs

»www.realtor.com/blogs/20 ··· -a-home/

I'll go better than that... I'm built into the side of a hill and two of the four basement walls are out of the ground and have oversize windows. The in-law bedroom has a full size window, there is a giant picture window in the in-law living room, a 3' door with convertible glass storm, and a window over the kitchen sink.

I argued my case using your logic... and lost. Square footage was not counted.

robbin
Mod
join:2000-09-21
Leander, TX

robbin

Mod

What is the ceiling height in your finished basement?
XXXXXXXXXXX1
Premium Member
join:2006-01-11
Beverly Hills, CA

XXXXXXXXXXX1

Premium Member

said by robbin:

What is the ceiling height in your finished basement?

I think it's 8' but not exactly sure. I have a few HVAC ducts that service that zone and the first floor that are framed over and sheetrocked, but other than that, it's full size basement height.

SandShark5
Long may you run
Premium Member
join:2000-05-23
Santa Fe, TX

SandShark5 to XXXXXXXXXXX1

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to XXXXXXXXXXX1
Man, that sucks.
XXXXXXXXXXX1
Premium Member
join:2006-01-11
Beverly Hills, CA

XXXXXXXXXXX1

Premium Member

said by SandShark5:

Man, that sucks.

Yep.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK

KrK to SandShark5

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to SandShark5
When did this go into effect? My understanding was that fully finished basements that meet the headroom requirements were part of the square footage!
XXXXXXXXXXX1
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join:2006-01-11
Beverly Hills, CA

XXXXXXXXXXX1

Premium Member

said by KrK:

When did this go into effect? My understanding was that fully finished basements that meet the headroom requirements were part of the square footage!

Both the town assessor and the appraiser told me (after the appraisal was complete) that it's the standard practice used in appraisals. And they said that since Fannie and Freddie are more picky about buying conforming loans, they have tightened up on the appraisal standards and guidelines.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
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KrK

Premium Member

This is in two letters, BS. This means I got screwed royally when I bought my house because they DEFINITELY counted the basement Sq. footage in that valuation. If I have to take off 900 sq. feet plus a bathroom I am sure my house would be considered way over priced compared to other homes and I would be upside down in it in a huge way.

Love it when they change the game after the fact. Too bad you can't just "adjust" the amount owed on a mortgage to comply with the new lower valuation. Wow.

ropeguru
Premium Member
join:2001-01-25
Mechanicsville, VA

ropeguru to XXXXXXXXXXX1

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to XXXXXXXXXXX1
Was it a local bank? If so, I find it kind of funny that both the appraiser and the town assessor knew this but the bank did not.
XXXXXXXXXXX1
Premium Member
join:2006-01-11
Beverly Hills, CA

XXXXXXXXXXX1 to KrK

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to KrK
said by KrK:

This is in two letters, BS. This means I got screwed royally when I bought my house because they DEFINITELY counted the basement Sq. footage in that valuation. If I have to take off 900 sq. feet plus a bathroom I am sure my house would be considered way over priced compared to other homes and I would be upside down in it in a huge way.

Love it when they change the game after the fact. Too bad you can't just "adjust" the amount owed on a mortgage to comply with the new lower valuation. Wow.

Yeah, you may have gotten royally burned on that one. When you get comp'd during a refi appraisal or a sale, you'll lose that bathroom and square footage... and it could potentially be a deal breaker for bank financing for your buyer.

Better look into it...
XXXXXXXXXXX1

XXXXXXXXXXX1 to ropeguru

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to ropeguru
said by ropeguru:

Was it a local bank? If so, I find it kind of funny that both the appraiser and the town assessor knew this but the bank did not.

Yes, local bank. Appraiser was from other part of the state hired through a blind third party (they pick a rotation pool of appraisers to keep a firewall between the bank and the appraiser's numbers).

But yes, assessor and appraiser knew this... bank reps did not. But in their defense, my in-law apartment is atypical of most homes... it's a unique feature that they don't see very often.

SandShark5
Long may you run
Premium Member
join:2000-05-23
Santa Fe, TX

SandShark5

Premium Member

Do you know if this is just the way it is in your state or is this nationwide? I know it's filmed in Canada, but on HGTV "Income Property", the remodel dude is always telling the homeowners how much more their home re-appraised for after they added a finished apartment in the basement.
XXXXXXXXXXX1
Premium Member
join:2006-01-11
Beverly Hills, CA

XXXXXXXXXXX1

Premium Member

said by SandShark5:

Do you know if this is just the way it is in your state or is this nationwide? I know it's filmed in Canada, but on HGTV "Income Property", the remodel dude is always telling the homeowners how much more their home re-appraised for after they added a finished apartment in the basement.

Good question... not really sure. I would think nationwide as Fannie and Freddie's loan standards apply virtually everywhere. I plan to have a local real estate broker do a walk through to give me a good faith valuation. I'll ask him then.

ropeguru
Premium Member
join:2001-01-25
Mechanicsville, VA

ropeguru to SandShark5

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to SandShark5
I will b e able to let you know the first of next week. Closing on a home on Monday and will know by then whether or not it counted. I can say that it did not for my home owners.