Finished Basement Appraisal Value??

Question

What is the typical price per square foot given by appraisers on a finished basement in relation to above grade price per square foot? The basement is a bedroom with closet, and large egress window well. Is it about half the value of the above grade? Where I am, basements are not typical, so comps are very hard to come by, therefore, we just got an appraisal knocked down by $10K on a flip, because he valued basement at $43 per square foot, and above grade at $149 per square foot. We originally priced at $138per sq ft up top and $80 per sf for the basement. Had two offers the first week, and are under contract by $2500 above ask, covering some closing costs. Am challenging, as I have gone toe to toe before with this appraiser, and there are also multiple inconsistencies and misinformation on the report as well. Also, when flipping a home, doing full gut rehab, what condition rating are you seeing on your appraisals?

Trent Stone · Answer

That's rough Stephanie, I'm sorry! Unfortunately you are just at the mercy of the comps and the appraiser. I'm sure you are aware that an appraiser will almost never change their report unless it's some grave error. With the fact that you don't have enough data points to determine supply vs. demand and how it equates to value of the basement, I think you'll have a hard time getting him to budge or proving your case. I know an appraiser who says anytime he gets challenged it's almost a competition just to prove that he knows what he's talking about but will sometimes raise his appraisal by a couple hundred bucks just as a slap in the face because he knows it won't make a difference. Fact of life, some appraisers just suck!!