Appraisers' Free Forum

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.

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.

Same here ... built in garage.

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.

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.

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.

I agree. Hence, my question concerning this issue. I want some clarification, and this is the best place to find it.

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 ....

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

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.

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.

Bill Caudell wrote: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.

Talk about discriminating markets. That is slicing it really thin.

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.

Edd Gillespie wrote:

Bill Caudell wrote: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.

Talk about discriminating markets. That is slicing it really thin.

Just referencing the verbage in the Marshall and Swift Residential Cost Handbook (page 11).

Bill Caudell wrote:

Edd Gillespie wrote:

Bill Caudell wrote: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.

Talk about discriminating markets. That is slicing it really thin.

Just referencing the verbage in the Marshall and Swift Residential Cost Handbook (page 11).

Well then, it must be correct. Why did you steal it and forget ot give them credit for it. Actually, I suspect, even then it may be a distinction without much of a difference.