Appraisers' Booklet

Helpful Hints for Real Estate Agents Presented by the Appraisers Council of The Lancaster County Association of Realtors® Table of Contents ABCs of House Styles ................................................................ 3 Appraisal Definitions .................................................................. 6 Two Story Dwelling...................................................................... 8 Cape Cod/1.5 Story ................................................................... 10 Split Level Dwelling .................................................................... 11 Bi-Level/Raised Ranch .............................................................. 13 Ranch ............................................................................................ 14 Closing Comments....................................................................... 15 2 ABCs of House Styles A Frame: The shape of the frame is of one or more As. These swellings normally have steep, gable roofs covered in shingles, the front and rear have large glass windows, and interiors are roughly finished. Bi-Level: Two level home, the lower level most often contains a built in garage, family room, laundry and powder room. This lower level can be above or below grade, but in our area is not considered in the square footage. The upper level generally contains living room, kitchen, bedrooms and bath. Capecod: A symmetrical one and a half story compact house with a central entrance. Bedrooms are often on the first floor with the second floor finished with an additional two bedrooms and bath. Log House: One, one and half or two story designs normally finished on exterior with unfinished logs (no other exterior covering of any type). There are two basic types of log houses, one is built with round logs like the traditional Lin- coln Cabin and the other is built with squared off logs. Several companies produce reproduction of the original log cabins and can be delivered to pre-planned sites for con- struction. 3 Mobile Home: Relocatable house that averages twelve feet wide by sixty feet long. It is produced in a factory and towed by truck to the site and often installed on a prepared base. Wheels and axles used to transport it are removed after installation. Modular: A house constructed of manufactured components, assembled partly at the house, rather than totally on the site. Modular homes may also be called pre-fabricated homes. Ranch (often known as a California Ranch): This is a one-story ground-hugging house with a low-pitched roof. In our area the majority have basements. Rowhouse: These dwellings are attached and often extend an entire city block. They can range from two, two and a half to 3 stories with a front stoop normally leading up to the first floor. They have common sidewalls with the house next door. Salt box: This is a two story or two and a half story square or rectangular house with a steep gable roof that extends down to the first floor and rear. Semi-Detached: Similar to the rowhouse in design, but attached to the neighboring house on one side alone. 4 Solar House: These can be many storied with the great portion of the exterior walls consisting of large glass windows and doors. The house is always positioned on the site to take advantage of the sun, summer and winter. Split-level: A house with different levels, none of which is a complete story higher than another. Three or four level split dwellings are commonly found in our area. Typically in our area, the kitchen and bedroom levels are considered when calculating above grade square footage. Two Story: A symmetrical house often with a hip roof, both stories above grade. The second floor can have an exten- sion constructed over the first floor garage, which is often a master bedroom. 5 Appraisal Definitions: Acre: A measure of land 43,560 square feet in any shape or equal to 160 perches. Appraisal: The act or process of developing an opinion of value. Appraisal Procedure: The act, manner or technique of conduct- ing the steps of an appraisal method. Date of the Report: The date of the transmittal letter of a written report or the date a written report lacking a transmittal letter is prepared by the appraiser. Depreciation: A loss of property value from any cause. Dormer: An area, which rises vertically above the roofline of a sloping roof. A dormer normally is a bedroom window or second floor bath. Effective Date: The date on which the analysis, opinions and advice in an appraisal apply. Effective Date of the Appraisal: The date at which the value opinion in an appraisal applies which may or may not be the date of the inspection; the date of the market condi- tions that provide the context for the value opinion. 6 FABG: Finished area below grade Obsolescence: An appraisal term meaning that the age of a structure may cause it to become undesirable in use or appearance and consequently lose income from value. Party Wall: A wall erected on a property boundary as a common support to structures on both sides, which are commonly under different ownerships. Square Footage: The area contained by boundaries of one foot long and one foot wide. There are nine square feet in one square yard. 7 Two Story Dwelling: Square Footage Calculations: 2nd floor = length x width HRemember to square off the dwelling and measure in boxes. HDont forget to look up often there are overhangs on the 2nd floor. 1st floor 28 x 40 = 1120 sq ft 2nd floor 28 x 40 = 1120 sq ft Total square foot for dwelling above grade 2240 sq ft HFinished basement space should be entered in the fabg in MLS. HThe vaulted ceilings (large areas you are unable to walk on) are not included in the 2nd floor totals. Open foyers or small areas typically in this area are included on both levels to sim- plify the calculations. 8 Cape Cod/1.5 story Square footage calculations: First floor = length x width Second Floor = length x width HSuggestions: if the 2nd floor of the cape cod is finished use only the portion completed in the square footage above grade. It is much easier to obtain the correct dimensions when mea- suring the property manually in the interior of the 2nd floor. HDo not forget to add the dormers, if these are finished living areas, measure to height of four foot only where roof line slopes to floor. 1st floor 36 x 32 = 1152 sq ft 2nd floor 12 x 36 =432 sq ft 10 x 02 = 20 sq ft 10 x 03 x 2 = 60 sq ft 06 x 10 = 60 sq ft ft Total Square Footage 1724 sq ft HQuick steps if you can not measure interior 2nd fl Full rear shed dormer = length x width x 1.75 No dormer = length x width x 1.5. 9 Split Level Dwelling (multiple levels 3 or 4) HDont forget to look for overhangs Level A = length x width Level B = length x width These are considered finished above grade square footage. HLevels C & D are always included as basement. Level C = length x width (located under bedroom levels portion of this area is often street level) If finished include in the FABG in MLS Level D = length x width (located under living room, kitchen) if finished include in FABG. 1st floor (A level) 20 x 22 = 440 sq ft 2nd floor (B level) 24 x 25 = 600 sq ft Total above grade Square feet 1040 HIf the dwelling is 3 levels enter basement as partial basement if 4 or more levels, enter basement as full basement in the MLS. 10 Bi-level (sometimes known as Raised ranch) HDont forget to look for overhangs 1st level (upper) length x width. HLower level (full basement or part basement if the property has a built-in garage) length x width. Upper level 30 x 50 =1500 sq ft 8 x 2 = 16 sq ft Total square footage Above grade: 1,516 sq ft HMLS hints: lower level is considered basement space finished or not, ABOVE GRADE OR NOT. Do not ever include this area in square footage above grade. HFinished basement square footage area should be considered in the FABG. HIt would be helpful, if in the comment line (only) - you include the total basement level finished/unfinished combined. 11 Ranch Square footage calculations: First floor = Length x width. 1st floor 46 x 28 = 1288 sq ft Total square footage 1,288 sq ft HLower level (even if it has an open-air exit) is considered basement level. HMLS hints: Finished basement level include in the FABG. 12 The Multiple Listing Committee and The Appraisers Council have joined together to compile this booklet to help the new agent and refresh the experienced agent on how to measure square footage. This seems to be the number one confusing area (and one of the most if not the most important area) when listing, compiling a CMA or appraising a property. Hopefully these are simple easy to understand directions on how to measure these dwellings. HDont forget to look up for those overhangs. HDo not include any portion of the basement level in finished above square footage. HRemember to include those odd items in the MLS. ü Dirt basements ü No central heating ü Walk-thru rooms (or sometimes called privacy viola- tions) ü If property has only one bathroom (on a multiple level dwelling) and all bedrooms are located on the 2nd level make a comment ü If water source is other than well/public please comment 13 We appreciate all your efforts to include the correct informa- tion in the Lancaster Multiple Listing Service. Abc of Houses: Definitions taken from Houses 2nd Edition Harry S. Harrison Appraisal Definitions: Taken from The Real Estate Dictionary & USPAP 99 14.

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