Wrong - Posted by comps
Posted by comps on June 19, 2005 at 13:37:08:
Got to thinking more about this issue because I’m rarely called 100% incorrect so I pulled out a mortgage appraisal on a property of mine which has a basement/below grade area to look at it in detail. This was done on a Complete Appraisal Analysis-Summary Appraisal Report/ Uniform Residential Appraisal Report which I believe is the same one used all over the U.S.
I did not find anywhere on the appraisal where it gave the TOTAL living area of the house, much like you would find on the MLS. However, it DID list and value basement/below grade areas that were finished - just as I indicated.
In the sales comparison analysis of the appraisal it breaks out the two areas of the house into 1) above grade/room count/gross living area and 2) basement and finished rooms below grade. In the below grade category the finished and unfinished areas were broken out even further into square footages for each. It lists the Total/Bdms/Baths in each of the above grade and basement/below grade categories. Appropriate +/- dollar valuations are given in the comparison with other homes which also have finished/unfinished basements/below grade areas. For example, one comparable house has part of the basement/below grade square footage listed as finished and part as unfinished. Both the finished and unfinished basement/below grade areas of that house were each were assigned comparable values.
I believe a basement area/below grade area that has no concrete floor, half the normal height, etc. would not be counted in an appraisal. This may be true of many houses. Or, if you are comparing a home with an unfinished basement to similar homes with unfinished basements, they may not be an issue in the appraisal.
So to conclude: Basement and finished rooms below grade and their square footage CAN be counted in an appraisal.