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Some states say that if the basement is finished and has ingress and egress (meaning a door) one one side, it can be counted in the square footage of the house.
Here's what mortgage giant Fannie Mae has to say on the basement matter: "Only finished above-grade areas can be used in calculating and reporting of above-grade room count and square footage for the gross living area. Fannie Mae considers a level to be below grade if any portion of it is below grade, regardless of the quality of its finish or the window area of any room."
Very Interesting. If this is true, then would a single story home with a sunken living area (as was very popular in the 70's) actually have zero living area despite having in excess of 2000 square feet of climate controlled space under it's roof? How did the tax protestors miss that loophole?
I think so. In my Town House development most of the homes look 2 story in the front but the back is clearly 3 stories. The lowest level has a backyard, sliding glass door to the family room with FP, a windowless bedroom, and a full bathroom(no window). You walk in on the 2nd level in the front (LR and kitchen). They have a back deck on the 2nd level and a patio on the first level but no garage. 3rd level bedrooms. 2500 square feet!
Purchased an Italianate brownstone style home with vinyl siding at the bottom of a hill. The "basement" is a walk-out basement with the front entrance of the home at the lowest point of the hill. From the front of the home, it looks as if the walk-out basement is the first "story", however less than 20% of that level is above grade. The rest of that floor goes underground as you walk toward the back of the house (as it enters the slope of the hill).
For all intents and purposes, this is a "two-story" with a walk-out basement. An old survey lists it as a "Three Story" but inspectors and an appraiser consider it to be a two-story home with a basement and recommend getting a new survey done. Other homes on the opposite side of the street (the hill continues to slope downward) are able to have a basement with three full stories above it (their walkout basement entrances are at the back as you would expect).
The area of this city has a three story limit. My home is the only one that has no basement below the "walk out basement".
Any insight on this sort of phenomena?
Say I wanted to add another level to make it a "true three story" or
add dormers and a mini mansard roof on top of the home to make it two and a half stories?
If I wasn't able to add another story or half story, the digging out "another basement" would make it a cellar because it would be completely be underground right?
This is in NY/Lower Hudson Valley/Westchester area. Any thoughts?
If the front entrance opens into it, it is not a basement. The house is three stories.
I smile reading this thread.
The last house we built was earth sheltered with three sides completely underground.
Does that mean I had a no story house?
LOL!
I came here to mention the home some friends own. They have not only three sides underground, so is the roof!
I smile reading this thread.
The last house we built was earth sheltered with three sides completely underground.
Does that mean I had a no story house?
Opinion:
D.O.B. ,Architects, Concessions................uphill battle pal.
Friend of mine built the foundations for a 4,000 sq. ft. home with basement. Approved.
After foundation was poured and reinspected. Disapproved.
Conflict between the old set of books,the new set of books down at the court house.
Basically when questions arise all answers take the path of least resistance.
Whatever your home is CO'd for that's the simplest path that will be followed.
Alternate: If you can't build up ...try to build out...........
Last rule of development: Flat land will always be worth more than hills.
But..... A finished basement, equivalent finish to above grade living area, ALWAYS adds value to a property.
I.e.: House #1:
The King model.
2400 SF above grade.
4 bedrooms. 3.5 baths.
House #2:
The (same) King model.
2400SF above grade.
1000SF below grade, of similar or equal quality to the above grade property.
6 bedrooms. 5.0 baths.
Equivalent land value for both.
Equal exterior elevations.
Equal condition and maintenance and decor.
Which house is larger? House #2
Which house will appraise at a higher value? House #2
Which house will sell for a higher price?
House #2
See..... You don't get the basement in House #2 for free just because that level "doesn't exist" at Fannie or Freddie or at the Dew Drop Inn during Happy Hour. I.e., as fun as the banality of an argument that Fannie or Freddie imply that the basement level doesn't exist, and that the two homes are the same size, it is clear that people spending their money with their eyes on reality believe differently.
And, Fannie will back the loans without worry.
Although FNMA defines what can be considered living area, they don't restrict how any area is valued in an appraisal. FNMA only restricts what line in the appraisal grid is used to report the area.
In your example, if the Subject has the basement it would be shown as 2,400 sf and there would be no adjustment against the one with no basement. But, on the next line down, there would be the adjustment for the 1,000 sf basement.
The basement adjustment can be the same as the GLA adjustment, or it may be different. That is very location and price specific.
In some areas, buyers accept basements as living area. So, if there was a 3,400 sf house, with no basement, being compared, it would have a negative $50,000 for GLA, but then have a positive $50,000 adjustment for basement. Effectively, valuing it the same, but just splitting the numbers to satisfy FNMA guidelines.
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