Have an appraisal that states there is 1700 sq ft of finished area in the basement which includes a bathroom, bedroom, family room and den but this part was not included in the total sq footage of the home just the areas for the 1st floor and the 2nd floor does anyone know if this is to be included in total living square footage or not and would this additional square footage affect the value of the home? The appraiser is telling us is that the finished areas in the basement are not included.

In the old days, the only way you could use a basement in the square footage was it if had direct access outside - like a walk-out basement. I don't know if that's still the case, though.

Does it meet the ceiling requirements:

Ceiling Height Requirements
To be included in finished square footage calculations, finished areas must have a ceiling height of at least 7 feet (2.13 meters) except under beams, ducts, and other obstructions where the height may be 6 feet 4 inches (1.93 meters); under stairs where there is no specified height requirement; or where the ceiling is sloped. If a room’s ceiling is sloped, at least one-half of the finished square footage in that room must have a vertical ceiling height of at least 7 feet (2.13 meters); no portion of the finished area that has a height of less than 5 feet (1.52 meters) may be included in finished square footage.

For the rest of ANSI Z765-2003 go here:

http://www.greenwoodlands.com/images/ansi20standards.pdf

The appraiser might be using this standard.

I just attended an appraisal webinar the other day and we were told, and it has always been my experience, that only the house portion "above grade" is counted. The information on the "below grade" portion can be included on the report it just doesn't count in the calculation. I have that problem with my house. My appraisal reflects one bedroom and one and 1/2 bath when I have two bedrooms and a full bath downstairs. My downstairs portion is 3/4 underground (daylight basement). It has a separate entrance but the appraisers don't count it.