Consumer Homes.

Question:

- Hide quoted text — Show quoted text – > The appraised value of your home has just as much to do with the > actual selling prices of similar homes in your area. > Typically, you can’t just take the cost of the improvements and > add them directly to the value of your home.  Also, basement or > attic square footage doesn’t add directly either.  If you think > about it, you house really isn’t any bigger today than it was > when you bought it 18 months ago.  Nor is it any bigger than > its "twin" next door.  While the finished basement does add > to the value, it doesn’t (for example) double the value of > your home because you now have twice as much square footage. > However, we are trying to decide if we > should have the floor covering installed PRIOR to an appraisal.  Would > the house appraise much much higher with the floor covering in, or > would the only difference simply be a matter of adding the value of > floor covering + installation to the value of the house?

OK – Firstly, thanks for the responses, but I clearly included way more information in my question, as my question never really was answered.  No, of course I don’t expect to double the value of my home, even though there is in fact that much more in square footage – that would be crazy.  All I want to know is what affect the lack of, or presence of floor covering in basement will have on the appraisal. We are short for time, and are trying to decide if we should get this done pre-appraisal, or if it really has not appreciable net affect. Thanks again though… Shushry

Response:

The appraised value of your home has just as much to do with the actual selling prices of similar homes in your area. Typically, you can’t just take the cost of the improvements and add them directly to the value of your home.  Also, basement or attic square footage doesn’t add directly either.  If you think about it, you house really isn’t any bigger today than it was when you bought it 18 months ago.  Nor is it any bigger than its "twin" next door.  While the finished basement does add to the value, it doesn’t (for example) double the value of your home because you now have twice as much square footage. – Hide quoted text — Show quoted text – > However, we are trying to decide if we > should have the floor covering installed PRIOR to an appraisal.  Would > the house appraise much much higher with the floor covering in, or > would the only difference simply be a matter of adding the value of > floor covering + installation to the value of the house?

Response:

> So to say that the value of a house is based on square footage and on > similar sized home’s selling prices in the area does not make sense. (And > that unfinished rooms and storage space don’t count…) > I don’t think storage space and unfinished rooms should be valued as highly > as finished living areas, but these areas can be used for storage or > working on things, so there should be some additional value for homes with > this space. Yes?

I agree that there is some value to the unfinished spaces, but in order for areas to qualify as part of the square footage, it has to be heated. HareBall

Response:

I think this house square footage thing is silly! I consider square footage as anywhere I can put a box inside the home. It is usable space and counts to me. Now my house is "officially" 1300 sq. ft.. Counting the unfinished shop…1500 sq. ft. Counting the storage space in the attic… 2000 sq. ft. Now my neighbors house was considered the same size as my house for selling. But their house is 1300 sq. ft. period. No shop and no attic storage space. When they visited my house, they said "You have a big house!" Clearly the square footage calculation does not communicate the space available in my home. And a home with a shop and attic storage space is of more value to me. So to say that the value of a house is based on square footage and on similar sized home’s selling prices in the area does not make sense. (And that unfinished rooms and storage space don’t count…) I don’t think storage space and unfinished rooms should be valued as highly as finished living areas, but these areas can be used for storage or working on things, so there should be some additional value for homes with this space. Yes? – Hide quoted text — Show quoted text – > The appraised value of your home has just as much to do with the > actual selling prices of similar homes in your area. > Typically, you can’t just take the cost of the improvements and > add them directly to the value of your home.  Also, basement or > attic square footage doesn’t add directly either.  If you think > about it, you house really isn’t any bigger today than it was > when you bought it 18 months ago.  Nor is it any bigger than > its "twin" next door.  While the finished basement does add > to the value, it doesn’t (for example) double the value of > your home because you now have twice as much square footage.

Response:

Hi!  First time posting to the group, and I have a question concerning an appraisal.  My wife and I are considering a refinance, and would be taking cash out.  Naturally, we need an appraisal done on the property.  Here is the situation:  We purchased the house (an attached twinhome) with a completely unfinished, walkout basement (nuthin’ but concrete).  We have since owned the house for 18 months and during that time have invested ourselves into finishing off the basement.  It looks great, and we are completely finished with the job, with the exception of the floor covering (i.e., carpet, tile, etc).  All walls, painting, plumbing, etc is complete.  The new basement includes a movie room, den, bedroom, full bath, and rec-room (about 1400 sq. feet in all).  My question is this:  How much of an advantage are we to have the floor covering installed as determined by an appraisal?  The finished basement essentially would double the useable, liveable square footage of the house.  However, we are trying to decide if we should have the floor covering installed PRIOR to an appraisal.  Would the house appraise much much higher with the floor covering in, or would the only difference simply be a matter of adding the value of floor covering + installation to the value of the house? Thanks to all in advance!

Response:

>…. have invested ourselves into finishing off the basement.  It >looks great,…. >….  My question is this:  How much of an advantage are we to >have the floor covering installed as determined by an appraisal?  The >finished basement essentially would double the useable, liveable >square footage of the house….

1) I used to be a certified general appraiser (the highest state category) though I have since changed fields. 2) There is in fact an ANSI standard for what to include in SF 3) Here’s the bad news for you: industry standard does NOT allow you to "double the . . .  square footage" in that way.  Your basic sq footage (above grade outside measure) will likely not change.  What you will get credit for is an incremental adjstment for a "finished basement".  Even you must know intuitively that your house is not now worth anywhere close to twice as much with the basement finish (you didn’t call the assessor and tell him/her to double your taxes, did you?) 4) You did mention it was a "walkout".  Maybe you have some rooms along one side that are above grade and can now be counted.  Maybe you don’t.  I have not seen your house.  Most "walkouts" are not exposed enough to count any of the rooms as above grade finished area.  They are just "finished basement". 5)  Go ahead and finish your finish, it aint finished ’til its finished and until you do, you do not actually have a finished basement. just mho, -v.

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