perfect example....I just took out a home equity loan..Our home isn't fancy. 3 br/2bath 1000 sq ft upstair, and 950 sq ft of COMPLELTY finished basement. (den/bedroom/closets/full bath/laundy/wine cellar.
the appraisal DID NOT INCLUDE the basement as 'liveable space', because it's a basement (even with7 foot ceilings, fully insulated/dry walled/carpet/granite floors).
Our 'appraisal' came in $50k LESS than comparable homes in my neighborhood are selling for (and most homes around here sell in less than a week for around 10-15% OVER the asking price. Seattle is insane).