The answer to that question likely depends on the person answering the question. Many homes have basements that are finished to such a degree that they have the look and feel of living area. However, real estate appraisers, when appraising homes for mortgage lending purposes, have to follow the guidelines of the lenders. Note the following quote from Fannie Mae regarding finished below grade areas:  "Fannie Mae considers a level to be below-grade if . Fannie Mae considers a l