Four level home design and home value

A four level home design offers four levels, but they are offset with steps leading to one level and the next. Normally, you’ll go into the entry. This will be the main level of the home. The main level will usually have the kitchen, living room and dining room area and many times, these homes will have a breakfast nook next to the kitchen. The breakfast nook will lead to the sliding glass door outside. From the nook area, you can look down into the family room area, where there is usually a fireplace. Many times this area is two feet or more below ground level. Sometimes, this level is at grade or at ground level.

This is important to note from an appraisal stand point, as the appraiser will identify the gross living area as above grade or basement area and this may make a significant difference for your home value. From the family room area, there will be stairs that goes down into a basement. Most of the times, the basement is on half of the main level and this area is clearly below ground level and included as a basement. So to recap, you’ll have. If you start back at the main level, you can choose to go to the family room or up stairs. Usually, this will be where the bedrooms area. It is typical to have three bedrooms and two bathrooms on the upper level. Four level home design plans will vary depending on the builder, but here is a basic run down of each level.

1st floor with the kitchen, living room, dining room and nook2nd floor will offer the upper level with the bedrooms and bathrooms3rd floor will be either just below ground level (in this case it will be included as a basement) or at ground level with a walk out door to the outside of the home showing the grade to be level. In this case, this area will be included above ground level. 4th level will be the basement area that is fully below ground level. Sometimes, these areas will offer egress windows like a typical basement.

If there are lots of homes in your market are that offer four level home design, the appraiser will usually use these types of homes, regardless of the location of the family room. Sometimes, it is not clear as to the location of the family room area or the area that is 1 to 4 feet below ground level. The best way to tell in some MLS sheets is to see of the basement offers a daylight walk out basement. The best way is to drive around the home and see if the basement is at ground level. Can you see a sliding glass door behind the garage area? In this case, this area will be included above grade. In some cases, it is extremely difficult to tell. Many times, Realtors will call these homes 1.5 story homes so that appraisers know that the third level is at or above ground level. This can also be cross references with public records.

The most typical floor plan for a 4-level home is one that offer the main level and the upper level to be above ground level and included in the GLA (gross living area) and the ½ below grade area (the family room) and the basement area in the basement area. This, of course, changes with each area and the location of the third level will determine if where the additional GLA should go on the appraisal form and, in turn, influence the value in the appraisal report.

What is the best way to build or buy a four level home?

If you like the design of a four level home, make sure you build the third level at or above ground level. This will ensure that you get the highest probable vale from the livable GLA. This will allow the appraiser to include the GLA in the above ground area, which is usually, given more consideration and more value. For the location of bedrooms, be sure you have at least three bedrooms and two bathrooms on the upper level. This will lead to a functional floor plan and increase the probability of selling your home and getting the most value when refinancing.

Refinancing or selling

If you are planning on refinancing, and you own a 4-level home, there is not much you can do. When you get your appraisal back, look at the comparable sales and see what they used to compare with your home. If they have 4-level homes regardless of the location, it is probably okay. If you’ve found that you have a 4-level home with the family room at or above ground level, this should be reflected in the grid of the comparable sales.

I just appraised another 4-level home. I had a choice to select basic 4-level homes with the family room below grade or to pick some 4-level homes and some 2 story homes with basements. In this case, the home offered the family room that is above ground level. This means that the GLA will increase and the basement square footage will decrease. In this case, the comp selection made a $40,000 to 60,000 dollar difference just for the location of two to three feet of dirt and how the gross living area is classified.

Not fair? Maybe, maybe not but it is all relevant when you are buying, selling, or refinancing.

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