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Had an appraisal done in order to refinance my mortgage and the appraiser refused to count the bathroom in my basement. The bathroom is fully enclosed with walls and door, no obstruction to access and has a working toilet, sink and tub all connected to the plumbing. The bathroom was included in the initial appraisal when I purchased the home so Im not understanding why this appraiser refuses to include it. Can anyone help me understand this?
Had an appraisal done in order to refinance my mortgage and the appraiser refused to count the bathroom in my basement. The bathroom is fully enclosed with walls and door, no obstruction to access and has a working toilet, sink and tub all connected to the plumbing. The bathroom was included in the initial appraisal when I purchased the home so Im not understanding why this appraiser refuses to include it. Can anyone help me understand this?
Does one have to pass through unfinished basement to enter this bathroom?
ANY work in the basement level is NOT a part of the "above grade living space"
When people are selling they'll say all sorts of things. Caveat Emptor.
Does that apply if it's a walkout basement?
I honestly don't remember if our appraiser counted the full bath in the basement. I just know he couldn't find any comps and we just wanted to hit high enough to get the mortgage.
I honestly don't remember if our appraiser counted the full bath in the basement. I just know he couldn't find any comps and we just wanted to hit high enough to get the mortgage.
You will bump into people who think any finished basement area should go to buyers for "free" because it doesn't exist.
Odd, but true.
Yes. Even in NC.
Any space which has soil against the walls. Even just partially.
Of the ~150LF of exterior wall on my walkout basement home...
only 15 feet of it is fully at the lower grade (used to be a garage entrance).
About half of the 150LF here is at least six feet below grade.
Quote:
...and we just wanted to hit high enough to get the mortgage.
Ding. Ding. Ding.
Quote:
Originally Posted by FHA
FHA loan rules for including the basement in the appraisal are found in HUD 4000.1, the FHA Single Family Loan handbook.
It says that the appraiser must not, in general, include the basement is what is known as the Gross Living Area:
“Gross Living Area (GLA) refers to the total area of finished, above-grade residential space calculated by measuring the outside perimeter of the Structure. It includes only finished, habitable, above-grade living space.”
Last edited by MrRational; 06-29-2021 at 10:37 AM..
In NYC, how much is above or below grade is critical. The 50% rule determines whether or not the space is included in
"Unbeknownst to many, the difference between a basement and a cellar, often misconstrued as an endearing colloquial difference, is, in fact, a nuanced legal matter.
At least half the story must be above ground to qualify as a “basement” in New York City. Otherwise, it’s considered a cellar and is not legally habitable — no matter how nice it looks. (Covering up the rubble walls and removing the shackles won’t cut it, sorry.)
To put it in legalese, a basement is “a building story that has at least one-half of its floor-to-ceiling height above curb level or the base plane,” in the words of NYC Planning. And this space is included in floor area calculations — aka the square footage of the building.
The cellar is legally defined as “a level of a building that has at least one-half of its floor-to-ceiling height below curb level or the base plane,” says NYC Planning. It is not included in floor area calculations."
"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. Therefore, a walk-out basement with finished rooms would not be included in the above-grade room count."
And this squabble over what is and what isn't "living space" is a great example of the absurdity and irrelevance of SOME appraisals. I have owned homes and been in other homes in which the finished "basement" (50% or more below ground) have been as nice and usable as any room above grade. This included bedrooms, bathrooms, recreation rooms, dens, utility rooms, etc.
Yet, some appraisals apparently think these rooms don't exist. I'll give Mike credit for that last line since he occasionally comes up with a valid point.
Last edited by Chas863; 06-30-2021 at 05:35 AM..
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