Appraisers' Free Forum

**benluby** · Certified Residential Joined: 12 Aug 2007 Posts: 1576

So here's my question. You have a two car garage built into the basement. Do you count it as basement or garage? I've seen it done both ways, and heard pleas on both sides. I am just curious how everyone adjusts/calculates this.
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DB · Posted: Fri Dec 21, 2007 10:11 am Post subject:

If it is obviously a garage, I count it as a garage and place the rest of the below grade SF as basement, finished or unfinished.
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**Annemieke Roell** · Posted: Fri Dec 21, 2007 10:29 am Post subject:

Same here ... built in garage.
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**Edd Gillespie** · Certified General Joined: 13 Aug 2007 Posts: 2282

I can show you market reactions to no garage and to no basement, but I have nothing to support a different adjustment for a garage in the basement. What I do see is a tendancy to count it twice in the ame appraisal. Once as basement and once as garage. That sort of undermines whatever credibility you may have.

I'm saying that I don't think the market here would discriminate with price unless you had no garage and/or no basement or both.
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**benluby** · Certified Residential Joined: 12 Aug 2007 Posts: 1576

I've seen those that count it as basement, then in the garage area they adjust for the price of doors and EDO's. Hence, the reason for my question.
I am working to figure out which is more factual.
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**Edd Gillespie** · Certified General Joined: 13 Aug 2007 Posts: 2282

Well, as someone somewhere said, "Cost does not equal value." The question is, "what would the market do?" Something makes me think the buyers don't look at it as a basement and then add the cost of garage doors. Different utilities-different perspective.
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Edd “In the real estate economy, there are no guarantees that reason will prevail in a market where emotions run high and the amount of misinformation runs deep.” Jonathan Miller in The Matrix. So what’s an appraiser to do?

**benluby** · Certified Residential Joined: 12 Aug 2007 Posts: 1576

I agree. Hence, my question concerning this issue. I want some clarification, and this is the best place to find it.
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DB · Posted: Fri Dec 21, 2007 11:12 am Post subject:

JMO .... nothing more ....

But my figuring goes something like this ....

A garage area has a specific purpose ... parking cars ... it can be partitioned ... it has a large access door and sometimes a separate access door ... but it has a specific purpose ....

The balance of the area below grade is up for grabs ... it can be finished .. it can be unfinished ... it can be a laundry area ... storage ... play room ... MIL apartment ... you can add a bath or a kitchenette .... and ... while the cost to build the entire area might be the same, or similar, what can be done with the areas is significantly different ....

I am surprised that I can remember this, but I appraised a house that had a fully finished basement ... right down to the closets ... and there was something that I could only call a "Harley Room" in the report ... it had a garage door, was about 12x12, had a composition tile floor, sheetrock walls and ceiling, fully finished, and 2 Harley Sportsters sitting in it .... the outside access was blocked by a concrete retaining wall, such that no other vehicle could possibly enter the area ... it was a small garage area, specifically for parking motorcycles and was decorated with colored flourescent lighting of a Harley theme, and a lot of Harley memorabilia and of course, tools ...

None of the lower level was considered in GLA, but the finish of the entire below grade area was 100% equal to the finish of the above grade areas .... so it had to be considered heavily in the cost approach, but it still wasn't GLA and the garage area was still a garage area, cut out of below grade SF ....

I too have seen some people "double dip" the garage/basement thing ... which, IMO is NOT correct ... if you are going to deal with the garage as a separate issue, then that SF needs to be cut out of the total SF for the below grade area ....
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**Otis** · Posted: Fri Dec 21, 2007 9:41 pm Post subject:

Ben - it's a garage - it's a built-in garage. It's not a basement. A basement can be "improved" to living area (even tho it's below grade) and can contribute value, as can an attached or detached garage. But the cost to build the garage as "built-in" is a lot more than a detached! Also, I'd bet that those that show it as a basement are probably hitting the upper limits of the market range.

Treat it as garage, IMHO. Look at M&S - it's already addressed there.

Now that I've said that - HOW does your market look at it?

Let me know - I can call or you can. LOL
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Kate · Posted: Sat Dec 22, 2007 1:14 am Post subject:

This is DEFINATELY a local thing.

Otis, I can't figure out the quote thingy (must be a blonde thing) But you said, "But the cost to build the garage as "built-in" is a lot more than a detached!"

In this part of the world 95+% of houses have basements and due to the fact that we live in the rolling hills part of the country most are walk out basements making built in garages very easy to do. When I find a garage in the basement the market reaction is not as large as if it is an attached garage. The reason is simple, if you have groceries in your car would you rather walk them into the kitchen or would you rather walk up a flight of stairs lugging those groceries in?? It's also a cost issue. It costs very little to cut into the side of the house and put in some big doors when you have hills like we do here. It costs a lot more to build a whole new structure to have an attached garage.

So, I still count the basement as full (if it is) and then adjust less for the garage spaces when "built in" if I have to compare to above grade garage stalls.
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**Bill Caudell** · Posted: Sat Dec 22, 2007 5:37 am Post subject:

Built-in garages have living area both adjacent to and above.
Basement garages are used in conjunction with an unfinished basement.
There is a difference in the two.
I do not think it matters which way you account for the "basement garage" as long as you do not double dip and your adjustment is considered reasonable for your market. It is the thing about going around a tree, you may go one way and I another. We both got around the tree.
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**Edd Gillespie** · Certified General Joined: 13 Aug 2007 Posts: 2282

**benluby** · Certified Residential Joined: 12 Aug 2007 Posts: 1576

Otis, the reason I asked, it seems like half the appraisals show it as full basement and garage, the other half cut it in two and make half basement half garage.
I also agree with Kate. The market reacts a lot better to an attached garage than a built in garage. Of course, here garages typicaly seem to be used as storage rather than car storage.
Most people seem to park in their driveway than their garages.
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**Bill Caudell** · Posted: Sun Dec 23, 2007 12:33 pm Post subject:

**Edd Gillespie** · Certified General Joined: 13 Aug 2007 Posts: 2282