Value of basement space?
I have a basement space aprox. 11′ x 11′, 6 foot ceiling, two windows looking out on the backyard. The space is heated by a steampipe and enclosed. Other than that is is pretty raw. The first floor apt. is being sold and I have had interest in “swapping” my space for a similar space in the basement that is a ‘dead-room’. They are comparable in size and condition. I use this space daily for an office. The first floor buyer wants the space for obvious reasons, it makes his apt. larger and is connected to the backyard, and it has windows, which is nice in a cave like space. He has offered to renovate the middle room to my liking (dig out the floor to make it deeper, do some ceiling work etc. He is a builder so renovations are pretty easy for him. He would even add a fresh air-ventilation etc. He is planning a gut reno on the apt if he buys it anyway. I like my space. I like the natural light etc. I like the fresh air. There isn’t really any reason for me to move. He says it’s a deal breaker for him and won’t buy the place without the extra room in the back. Of course, that’s not really my business but a detail I should add. He seems like a good guy, we might be neighbors… My mother-in-law said that the back space is worth more than just a renovation on a dead room, it is highly sought after real estate for anyone on the first floor. The buyer offered a reno with cash deal. I have no idea what I should be thinking as far as an asking price. I don’t want to be greedy but I do want to get what I should for the exchange. The last thing I want is to feel screwed later on and harbor resentment etc. He is being cool about it and I want to be the same. Of course, I could use the cash for alot of necessities. What should I ask? thx
Bassboy
in Appraisals 13 years and 7 months ago
4
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4 replies
ilovestoops | 13 years and 7 months ago
There may be other factors that affect the value. For example, if access to the space can be created directly from the apartment, it increases the size and value of the whole unit. If this is a coop, the number of shares would have to be adjusted, giving you fewer shares and the buyer more shares. If it’s a condo, the percentage interest would need to be adjusted. The building would have to approve anything major, such as digging out the basement (which might also add shares). An appraisal would not only provide relative values, but would develop a reasonable relationship of shares (or analogously, of percentage interest). Either way, the building would have to be involved but should not incur any expenses. All expenses should be bourne by the parties involved. Maybe you and the buyer could split the cost of an objective appraisal, and any legal fees that may be incurred by changing building docs, but the building (coop or condo) could be the actual client. By the way, the building probably won’t approve anything involving a potential resident. You and the seller should probably work out the details. Good luck!
slopemope | 13 years and 7 months ago
not 100% sure about your post and the “swap” etc. if the space is dug out, it will have value to someone. whether the space would be considered legally habitable i’m not qualified to speculate. the value of a space is obviously what someone will pay for it. obviously an appraiser would have a near impossible task of comping to a unique space like this. i’ve seen appraisers do a “cost approach” at roughly $75 per square foot to finished basement space (in that case it was roughly 25% of the above ground price/sf). I think new yorkers value their space a little more than that. so obviously that is a bare minimum, but if its quite a useable space i would personally market it at 50-75% of whatever you would assign the rest of the price/sf in the building.
Bassboy | 13 years and 7 months ago
The apt. is in center park slope, 321 school dist. 6th Ave, near 5th st. I don’t really have the money for an appraiser, just wanted to know any kind of ballpark figure. Anyone?
Rick | 13 years and 7 months ago
You need to get an appraisal from an agent. I think we would all be guessing what the value is not knowing your location and access to comps.