Rec Room Appraisal
Is there a simple formula used to determine the value of rec room space relative to livable space? For example, if livable space is appraised at $500/sqft, the rec room space would be valued at X% of that? Thanks
Is there a simple formula used to determine the value of rec room space relative to livable space? For example, if livable space is appraised at $500/sqft, the rec room space would be valued at X% of that?
Thanks
From what I have seen, typically when assessing cost per square foot, only 50% of the area of a non sleeping space is counted. This is assuming that the quality of the finish in the non sleeping space is on par with the rest of the property.
That’s how the brokers I trust do it. Whether or not that is an industry wide standard I could not say, but it seems to makes sense.
A rec room on a CO is legal space. The restriction on the space is that it may not be used for sleeping. One can get into the discussion of occupiable vs. habitable space, esp. if any architects are on line but …..
Now back to the original question.
If it’s not legally usable space, forget it. You might be able to say that the construction is worth $5,000 or something.