answer - Posted by comps
Posted by comps on June 21, 2005 at 15:01:15:
I asked that question of you to make a point. Since you didn’t answer, I will:
If you are only referring to appraisers calling the square footage of a house as being the square footage listed in the above ground category of the appraisal, I would agree with you. However, it is wrong to generally state that appraisers don’t count or calculate the value of below ground areas (which was the original claim here). It is important for investors to know the difference.
The POINT of an appraisal is to VALUE the house. Banks, buyers, sellers, tax assessors, insurance companies, etc. plus investors all pay primary attention to the appraised VALUE of a house, not what the appraisers consider as the official square footage of a house.
An appraiser can claim all day long that a house has only 1200 sq ft but when everybody else (including the appraiser) values all finished 2400 sq ft (1200 above, 1200 below), his claim becomes rather moot and becomes pretty much a professional quirk. The MLS, the assessor, etc. all call the house as having 2400 sq ft. In real life we are concerned with the true VALUE and properly finished square footage is “counted” and calculated into the value, whether it be above ground or below ground.
You CAN say appraisers “don’t count” below grade.
(in the sense that they only consider above grade to count toward the official square footage of a house)
You CAN’T say appraisers “don’t count” below grade.
(in the sense that they don’t count finished below grade square footage toward value - because they do!)
Hope this clarifies things.