Whether you only want to know for your own knowledge, or you are looking to put your home on the market, the answer to ‘when is a basem*nt considered living space' is not the easiest one to figure out. One answer does not apply to every situation. If a room is below ground level, even if it's finished, it cannot be counted towards your home's square footage according to Fannie Mae and ANSI guidelines.
But don't let that worry you. Basem*nts, especially finished basem*nts, add tremendous value to your property, and can encourage most people to place an offer when you're selling, rather than dissuade them.
WHEN IS A BAsem*nT CONSIDERED LIVING SPACE: EXCEPTIONS
As said, not every below grade basem*nt is removed from the square footage of the house. The Fannie Mae Selling Guide writes of the exceptions,
"For example, a property built into the side of a hill where the lower level is significantly out of ground, the interior finish is equal throughout the house, and the flow and function of the layout is accepted by the local market, may require the gross living area to include both levels. However, in such instances, the appraiser must be consistent throughout the appraisal in his or her analysis and explain the reason for the deviation, clearly describing the comparisons that were made."
When is a basem*nt considered living space boils down to the layout of your home, if the basem*nt is finished and matches the flow of the above-ground portion of the home, and if enough of the basem*nt was built out of the ground. A house built into a hill will probably be an exception. While the clear majority of basem*nts will not qualify, there will always be a few that do. To know if your basem*nt is an exception, contact a local appraiser for evaluation.
WHEN IS A BAsem*nT CONSIDERED LIVING SPACE: PROPERTY VALUE
While a finished basem*nt is considered living space where your property value is concerned, it's only in rare instances that this living space is counted towards the square footage. Even if your basem*nt is not an exception to
the rule, a finished basem*nt is an asset to your property value. Finished below-ground living space can add value ranging between 50% and 70% of the above-ground value.
Of course, an above-ground addition to your home will add more value than a finished basem*nt. But finishing your basem*nt is a faster and less expensive way to add value. Specialized finished basem*nts add appeal and great value, including living spaces like in-law suites, home theaters, man caves, and wine rooms. But you can also add value by merely increasing your current living space with more bedrooms or a den.
WHEN IS BAsem*nT CONSIDERED LIVING SPACE: UPKEEP
Your addition of the basem*nt as finished living space won't do you any favors if you neglect its upkeep. Even a finished basem*nt can have mold and moisture issues, common problems that plague basem*nts. Basem*nts are below-ground level, making them prone to leaks and high humidity. If you notice an odor, see spots of mold, or find a puddle of water, or condensation on the walls, call a certified professional straight away. Mold, moisture, and odors are detrimental to your basem*nt and your potential to sell now or in the future. Take care of your basem*nt, and it will take care of you.
Call 877-957-5670 to schedule an appointment with an AdvantaCleanbasem*nt waterproofing specialist today!
