House listed as 3/2 but Master Bed is in Basement

[Nick Spann]

I'm looking at a property that is listed as a 3 bed/2 bath but when touring the location, the previous owners build a full bath and bedroom in the basement. Does this mean the house is really a 2 bed/2 bath that's on the main level? I concerned about the refi after rehab will force me to leave more money in. How much credit will you get for this type of setup? Should I base the negotiations on a 2/2?

Thanks,

Nick

[Jaron Walling]

Quote from @Rick Albert:

It's all about comps. Are there any sales that have the basement level suite?

Personal opinion, but I tend to think of it as a bonus (think ADU, granny suite, etc.). It has value, but I would plan as a 2 bed and let the market speak for itself. If you are thinking family typically parents want to be on the same floor as their kids.

 My thoughts exactly which is why we hesitate buy properties with finished basements unless it was done professionally or has potential do to so. It better be part of the strategy going in otherwise it may not help the appraised or resale value. The details of the sold comps is everything. 

In our market most of the older houses (built from 1910-1950s) have low ceiling heights. I'm 6'2'' and can almost touch my head. It's an instant "no go" for adding value down there. Half bath, full bath, wood bench/storage but that's about it. In some situations it's not even legal build due to egress and minimum ceiling height standards. Most of time it's a bonus room + half bath. There's definitely value for it but it's not living space like mentioned already.