Is a finished basement counted in a home's total square footage?

Question

"finished" = sheetrocked walls and ceiling. Carpet over cement.
Thank You

Answer 1

Please believe me, as I teach "How to Read an Appraisal" to mortgage professionals around the country. The answers you have received so far are incorrect...

As far as the square footage of the home is concerned, or Gross Living Area (GLA), only "above grade" improvements count. "Above grade" is defined as any floor that is "above the dew point." The dew point is where dew forms on the grass. A finished basement, whether daylight, walk-out, or totally underground is never above the dew point.

On a residential appraisal, basement area is counted on its own, separate from the GLA, and given a value. If any or all of the basement area is finished, it will be given additional value. But if you are talking about a 1000 square foot home, that would mean there are 1000 square feet of heated living space above ground.

Suppose there are three houses identical on the first floor, but house one has no basement, house two has an unfinished basement, and house three has a basement in which half the area is finished. Let's say the above grade area in all three houses is 1000 square feet. Here's how the value would be calculated:

House one would be worth, let's say, $100,000.

House two would be worth $100,000, plus another,let's say, $10,000 for the basement, for a total of $110,000.

House three would be worth $100,000, plus another $10,000 for the basement, plus another $15/square foot of finished basement area - $7,500 - for a total of $117,500.

While the basement area carries value, it is much lower than the value of area above grade. How much value depends on where the house is located and how popular finished basements are in the area. If you are somewhere that finished basements are sought, like PA or NY, it will add more value. If you are somewhere that finished basements are frowned upon, like FL, it won't add much value.

Either way, finished basement area will never add significant value to a home as would a similar above grade area added to the home.

Answer 2

For the US.

The basement has to be finished like other rooms and it must have sufficient egress in case of an emergency. Otherwise the space is not a valid living space.

If something minor is missing and that item can be corrected consider the cost.

Also note that just because it is finished the house will not be worth as much as another property that has the same space but where the other space is not in the basement. Some people find a basement to be damp, lacking in natural light, cold, humid or otherwise not the same as space on a a more traditional floor.

Answer 3

in australia the squares are work on floor area. so yeas it would be included. Take note also that when developing a house on land that there is diffrent rules and regalations such as max single floor are and max double story area. Both these are added up to give total floor area. even an out side Tin shed say 4ft by 2ft should be counted in floor area but many people get away with this because they are added latter after construction.
Changing name of balcany to flat roof has been used by myself to reduce floor area and to get a balcony close to view points as i can. No regalation on that side of it.
say a basement could be called a diffrent name such as foundation build-up then its not included in floor area.

Answer 4

Call your local code department and property tax office. Do not call from your telephone and do not tell them who you are and where you live. Odds are that if it is finished as you described it does count and will increase the value of your home and the property taxes. In some states they can actually come (by appointment) to assess your taxes. Hard to believe isn't it. In most states they will never learn unless the code enforcement officer learns of the improvements and can observe them from anywhere off your property. It will probably all come out in the open when you go to sell your home. Hopefully, you got a permit. Otherwise, the sale of your home will be delayed until the matter is settled with the city/county.

Answer 5

The real estate industry generally requires that the area have HVAC to be considered part of the home's liveable square footage.

Answer 6

It depends on your state.
I know it's not considered in the total sq. footage in Georgia.
Call a local Realtor to be sure.

Answer 7

It depends - does this basement have an entrance or does it have windows. It is a state legislate that determines what IS and what ISN'T sq. foot. I know that in KY and GA, basements are not considered (unless there is an outside entrance or windows ((KY)) )

Answer 8

Yes it will count but there is finished area above grade and finished area below grade. Is this being asked for your assessment, appraisal or on a listing sheet?

Answer 9

Depending on your state. In Missouri, It doesn't.

Answer 10

Yes it will be counted. The square foot value is less then the main floor but because it is livable area it counts.