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Answers (7)
Best Answer
- Jim Bellville, "JimVT"
- Contributions:11
It sounds as though the appraisal that was done 2 years ago was actually spot on with what the new regulations are for appraiser to consider space a basement or a 1st floor with a slab.
While it would be nice for you to be able to claim the additional 750 feet for additional living space, your real estate agent would not be able to list it as such in the MLS and the appraiser would not be able to consider it as such for the Buyer should they attempt to get financing. There was a new rule that went into affect in 2011 that required that any interior space where there was any sort of exterior grade against it (whether it was 2 inches or 8 feet) be considered basement. This was a regulation affecting appraisers and in order to prevent confusion NNEREN (the MLS that serves the Laconia area of NH) adopted new requirements for real estate agents when entering property data in the MLS.
You should be able to find a quality real estate professional in your area that can make that 750 feet sound appealing. Also the new property data sheets with this change will reflect the finished space in the basment, but it will not count towards the GLA that the appraisers use.
I would caution you about trying to bluff this space and calling it part of the main living area, because if a potential Buyer gets that appraisal for the financing and were to see the 750 feet missing, they may decide that something was not done correctly when the property was listed.
I am on the board for the NNEREN MLS and I can tell you that we had a very long discussion regarding this rule change and the listing sheet change so that we could make sure that none of the agents missed the change and the appraisal on a property would not show a sudden decrease in a home's square footage.
Good Luck!
- Greg Hotta, "Greg Hotta"
- Contributions:2
The other consideration for living space which has not been mentioned is if the space is heated and/or cooled. In my area if the space does not have these fuctions then it cannot be considered "living area" and therefore not counted in the square footage.
- Merrill Milner, "Merrill Milner"
- Contributions:6
There may also be restrictions to acknowledging the "finished basement" imposed by your local County Government. If you "finished' the area without permits, the County won't acknowledge the space. If the appraiser is looking up the County records and sees that the space is not recognized by the County, then he/she can make a note of it, but can't include it. That is how my local area works.
- wetdawgs
- Contributions:26833
What you describe is certainly not "fully above grade".
The appraiser involved in your refi and tax assessor are better judges of the living space in your home than an agent. If the appraiser considered the 750 square feet basement, I'd go with his/her evaluation and call out the basement separately. It won't be worthless, but the value added per square foot is considerably less than the value of above grade finished space.
Buyer's notice when the house is misrepresented (and wonder what else is misrepresented), so be very cautious on this one.
The appraiser involved in your refi and tax assessor are better judges of the living space in your home than an agent. If the appraiser considered the 750 square feet basement, I'd go with his/her evaluation and call out the basement separately. It won't be worthless, but the value added per square foot is considerably less than the value of above grade finished space.
Buyer's notice when the house is misrepresented (and wonder what else is misrepresented), so be very cautious on this one.
- Laconia Home Owner
- Contributions:2
I am looking to sell my house soon and the added 750 sq ft would add substantial value to my house. I had an appraisal done for a refi two years ago. The appraiser came to my house and deemed the bottom floor a basement with no living space allocated to it.
Inside there is concrete up to about wast high which is behind the dry wall and the grading out side the house is about thigh high. but there are 3 large full size windows that start at about waist high and go up 4-5 ft. These windows are on 3 separate walls. A Realtor friend of mine told me that if I have three full size windows on 3 separate walls and the windows are large enough for a fireman to get through than I could consider this living space. There is a full bath, large TV Area, Pool table, Bar, two closets and at the other end of the room there is a door into my garage which is obviously full above ground.
I was just wondering if there was anyone who was an appraiser that could give me a better idea if the information my Realtor friend gave me was correct as she is not an appraiser. A builder friend told me the same thing.
Inside there is concrete up to about wast high which is behind the dry wall and the grading out side the house is about thigh high. but there are 3 large full size windows that start at about waist high and go up 4-5 ft. These windows are on 3 separate walls. A Realtor friend of mine told me that if I have three full size windows on 3 separate walls and the windows are large enough for a fireman to get through than I could consider this living space. There is a full bath, large TV Area, Pool table, Bar, two closets and at the other end of the room there is a door into my garage which is obviously full above ground.
I was just wondering if there was anyone who was an appraiser that could give me a better idea if the information my Realtor friend gave me was correct as she is not an appraiser. A builder friend told me the same thing.
- wetdawgs
- Contributions:26833
Are you referring to the Zestimate when you mention "appraisal"? Here's more on the Zestimate. It definitely is not an appraisal.
What do your county records office record for the square feet of the home? Basements, even those that are walk out with at least one side fully at grade level, tend to be called out separately in most property appraisals/assessments with gross living area being only the area fully above grade.
- Natasha Kennedy, "Natasha Kennedy"
- Contributions:487
Why do you need to have extra 750 sq.ft. on your appraisal? Is it for refinancing? You can always get another apprasal.
Living space question?
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