Do I need AC/Heating in basement to count as square footage

Chattanooga, Tennessee
Tennessee Real Estate Q&A Discussion Forum
4yFollow

Do I need AC/Heating in basement to count as square footage

Prashant Singh
Member since 2021 · 7 posts · 1 vote

Hello,

   I live in Apsion, TN (Just east of Chattanooga). I have about 800 sq ft of unfinished basement. I am planning to get it finished. My question is do I need to get AC/Heating installed as well for the basement to count in the square footage of the house.

Thank you

0Reply
70 views

Most Popular Reply

Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
4y

@Prashant Singh

Also check your local authority as many do not consider below grade basement in square footage calculations.

7e investments53 Reviews
WebsiteView Page
3Reply
See this reply in the discussion

13 Replies

Jump to latestLatest
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    Just heat....

    0Reply
  • Prashant Singh
    OP
    Member since 2021 · 7 posts · 1 vote
    4y

    Hi Bruce, I see you have experience in CA and AZ. Are you sure about TN?

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    All jurisdictions should follow the IRC, which is an International Residential Code. It requires that all 'habitable spaces have a heating source'. This includes bedrooms, kitchens, living rooms, etc, but not bathrooms generally.....

    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Prashant Singh

    Also check your local authority as many do not consider below grade basement in square footage calculations.

    7e investments53 Reviews
    WebsiteView Page
    3Reply
  • Madison Wilson
    Real Estate Agent · Austin, TX · Member since 2022 · 33 posts · 33 votes
    4y

    I agree with Chris, you can include AC and heat, but if you do not get proper permits if you decide to sell/rent it still may not include the basement as square footage. This happens commonly in Texas with garages that are enclosed. I recently showed a property that enclosed a large two car garage, and it looked great, but it did not add to the value because of lack of permits. 

    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    Agree with Madison and Chris. I assumed that you would get the required permits for this project and do it right based on your original question about heat.

    0Reply
  • Brad S.
    Investor · Pasadena, CA · Member since 2017 · 612 posts · 523 votes
    4y

    If you are asking about "legal" sf (square footage), that happens only when the area is constructed or inspected and signed-off by the local jurisdictions. So, if there is a local planning and building department, typically, permits would have to pulled and building inspector/s would inspect the construction, during and/or after, to ensure it meets their standards. If an area was constructed or finished (including a finished basement), without permits, then it is unpermitted sf, and not considered legal sf.

    Of course, this assumes that your area is governed by a local building department which requires permits. My understanding is that some areas do not.

    Now, per newly adopted measuring standards for appraisals, a finished basement may be permitted as living area, but, it is considered below grade finished living area, and is reported separately from above grade sf. 

    Just to be clear, that doesn't mean the below grade (finished basement) has a different market value than above grade. That depends on the specific market. It also doesn't mean that "illegal" or unpermitted areas have any less value, but an appraiser would/should not include those areas in the overall living area calculations.

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y
    Quote from @Brad S.:

    It also doesn't mean that "illegal" or unpermitted areas have any less value, but an appraiser would/should not include those areas in the overall living area calculations.


    When I was an Inspector working with Realtors, it was generally about 50% value given for non-permitted areas. Depends on the house and the market of course....

    1Reply
  • Brad S.
    Investor · Pasadena, CA · Member since 2017 · 612 posts · 523 votes
    4y
    Quote from @Bruce Woodruff:
    Quote from @Brad S.:

    It also doesn't mean that "illegal" or unpermitted areas have any less value, but an appraiser would/should not include those areas in the overall living area calculations.


    When I was an Inspector working with Realtors, it was generally about 50% value given for non-permitted areas. Depends on the house and the market of course....


     Interesting.

    I've had some properties where the Buyers seemed to value it the same as permitted, or as an Appraiser, I might give it a value similar to legal gla and just adjust for a "cost to cure," to represent what it might take to get it permitted.

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y
    Quote from @Brad S.:
    Quote from @Bruce Woodruff:
    Quote from @Brad S.:

    It also doesn't mean that "illegal" or unpermitted areas have any less value, but an appraiser would/should not include those areas in the overall living area calculations.


    When I was an Inspector working with Realtors, it was generally about 50% value given for non-permitted areas. Depends on the house and the market of course....


     Interesting.

    I've had some properties where the Buyers seemed to value it the same as permitted, or as an Appraiser, I might give it a value similar to legal gla and just adjust for a "cost to cure," to represent what it might take to get it permitted.


     This was in San Diego County, mostly higher-end homes.....

    0Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    4y

    I have financed/refinanced close to 30 times, mostly in San Diego.  I have yet to have an appraiser verify permits.   If the work has nothing obvious out of code, the appraiser assumes it is permitted.  Whether they should be checking permits is debatable, but they do not.  

    Note I am not stating this is the case if the work is obviously not to code.  If the ceiling is too low on a unpermitted  finished attic or a poor unpermitted garage conversion, the appraiser will not count that footage.  

    Good luck

    0Reply
  • Billy Daniel
    Rental Property Investor · Russellville, AR · Member since 2014 · 684 posts · 509 votes
    4y

    You'll need to verify with the state and your local building inspectors.  Earlier this year, I think they changed the way finished basements are valued in Arkansas.  That may have come from a national standard, but I'm not sure.  

    BP provides great advice, but sometimes you have to go to the actual experts/authorities for the best answer.

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y
    Quote from @Dan H.:

    I have financed/refinanced close to 30 times, mostly in San Diego.  I have yet to have an appraiser verify permits.

    Me either. I never said the appraiser devalued the property. It was the buyer and their Realtor that would choose to offer less due to lack of permits. I was part of that conversation, but I of course was not there for the final deal.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free