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SwedishRider
Rider on the Storm
Premium
join:2006-01-11
not Sweden
kudos:1
reply to KrK

Re: Appraisals and Finished Basements

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
join:2000-01-17
Tulsa, OK
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.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini


ropeguru
Premium
join:2001-01-25
Mechanicsville, VA
reply to SwedishRider
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.


SwedishRider
Rider on the Storm
Premium
join:2006-01-11
not Sweden
kudos:1
reply 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...


SwedishRider
Rider on the Storm
Premium
join:2006-01-11
not Sweden
kudos:1
reply 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.


SandShark
Long may you run
Premium,MVM
join:2000-05-23
Santa Fe, TX
kudos:3
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.


SwedishRider
Rider on the Storm
Premium
join:2006-01-11
not Sweden
kudos:1
said by SandShark:

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
join:2001-01-25
Mechanicsville, VA
reply to SandShark
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.