Basement Value for Appraisals trick question!

Описание: Here is a trick question for you...

What is worth more money?

1. A basement that is 50% finished with 2 bedrooms and one bathroom, or
2. A basement that is 50% finished with nothing but a carpeted recreation room?

Strictly from an appraisal standpoint, there is zero difference in the value!
Many people get frustrated when they see a square footage calculation on the appraisal for their home because it doesn't count the basement bedrooms and bathrooms in the GLA. What is GLA? It is an acronym for Gross Living Area. GLA applies ONLY to the square footage of a home that is above grade. Does that mean your basement counts for nothing? Not at all, but the VALUE per square foot is less. The amount of the lower valuation depends on whether or not the basement is finished, and then, only the percentage thereof.

Does that mean that finishing a basement is not a good idea? Not at all, but it will cost you just as much money to finish an attic. In the video with my son's house, his cost to finish his attic wouldn't have been any less or more expensive if it were in the basement, so keep this in mind.
So why do Realtors place so much value on a finished basement? The answer is marketability. Let's face it, if there is a large family looking at your home who doesn't have a budget to finish the basement, they will most certainly be willing to pay more money and be more attracted to a home with 2 bedrooms and one bathroom in the basement. These are just some of the considerations when looking at appraised value versus marketability, so watch this video for more details.