Thanks everyone for the additional suggestions. I've been mulling it all over. Burntplants, I hope termites and bugs aren't a problem. We have the foundation treated twice a year and the siding is vinyl but I will check into this to make sure. I hadn't considered this an issue because the wood mulch was a suggestion from our builder and 2 of our landscapers. You have me concerned however. After some thought, I'm concluding that overhauling the grade isn't a viable option for a couple of reasons. DH is dead set against it and the second one is that I don't think it will end up being a livable space for the reasons karin and almondstriation have mentioned. The long term landscape plan involves a much larger outdoor living space in the area of our yard that is above wall and will be connected by steps to our screened porch. This little add on patio on the lower level would not likely get used much. The outdoor living area on the upper grade will be an expensive project and I hate to devote time and money to a make shift patio that will push back the timeline of the larger project. Clematis is another plant I am adding to the list of plants to try. Almondstriation, thanks for that suggestion. I just pulled a volunteer oak seedling out of there so I know there are some forms of plant life that can survive under there......how would an oak tree look in that space ? :) I was reading the thread on landscaping around garden sculpture and noticed the picture with the two large sphere's and the gel fire fire pit. The area has very little plant material but it is dramatic. I hope my space can achieve that kind of interest but not in a tacky way. I did a photo search for "spheres" on Houzz and saw some examples that have me thinking. I would love to hear some thoughts on this from some of you who work sculpture into your landscape plans.

Your lot and idea sounds like it is very similar to the home we just built. We just finished a ranch with walk out basement home on 3 acres fully wooded with creek at the bottom...I have lived in both a single story and two story. I always thought the 2 story was the way to go until I owned one. With two young boys I hated having to live on 2 levels. Carrying laundry up those stairs, keeping an eye on the kids when I was doing dishes, the utilities (oh man what a difference our ranch has made!) etc. We built our ranch with 3 bedrooms on the main level approx. 2000sf on each level. We left the basement unfinished but plan to finish in the next few years. It has 9'6 high ceilings, tall double windows with transoms in every room except for the storage room and bath. It is very bright and doesn't come close to feeling like a cave. In fact there seems to be more light than the average above grade home. There are 2 bedrooms framed in the basement with a large bath, huge storage room, storm shelter(we are in OK) huge living room, pool table area and bar area. The main level spare bedrooms are on the small side, 12x12 but since we will have the huge basement bedrooms I was ok with that. It is SOOOOO nice to live on one level again. I feel like we really use the space, in the two story I felt like I never went upstairs other than to put the kiddos to bed and dust the bathroom that was never used. I feel like the space allocated on the main level is very comfortable and we were careful to use every inch possible to make the main level very functional. Overall, even with young children I wouldn't have a two story (other than the awesome views from up there, we found out after we built would have been great for a playroom or something) Another thing I hated about our 2 story was the kids being on the upper level with our master on the main level. I always thought about fires and how I would get to them. At least with them down you can access them better if the stairs are blocked. I wouldn't want my boys downstairs by themselves yet but it works out well that they can be on the main level until they are a little older. Regarding the appraisal, we did not get even close to the going rate for the basement that above grade gets. They did a net adjustment for the basement and comped us something like $20,000...not even what our 4 car garage added! Another con if you want to call it that, is the home looks smaller from the front than a 2 story would. Honestly that doesn't bother me much since you can't really see our house from the street anyway, it is about the same as any other ranch out there.

I always see "daylight basement" and "walkout basement" used as interchangeable terms. Because of this, I think the expectation by most people will be that there is a normal-sized door to the outside, and larger-than-typical windows in the basement. This is how my walkout basement is set up, and it creates a number of possibilities which would be appealing to buyers. We can finish off a bedroom, we can finish off other rooms which will have a lot of natural light, we can create a patio directly outside the basement door, etc.. Right now we use the basement entrance all the time to directly access the back yard. MAYBE your realtor can technically call it a walkout basement, but as others have mentioned, it won't meet the expectations of most people. My realtor wanted to overstate features in my house and it was something I absolutely didn't want to get into.

nidnay - at our current facility we have an 8 stall barn with a bathroom, 12' X 18' office, and 12' X 24' tackroom, with the barn being about 125' away from the back of our house (facing it actually). I've lived here for 18 years now and we RARELY EVER use the stalls, so we don't plan on building a 'stable' (or a barn with stalls). The horses are going to live out with shelters in each pasture. Our current barn had to have it's own it's own septic system. $$$ The current land we are looking at only had one perc site for 4 bedrooms. I don't want to pay for the test for a second perc ($250) plus the cost of having another septic system (about $4K), as well as creating a climate controlled office and bathroom in the barn (a mini split system is about $3K and a 2 piece bathroom probably around $2K). That is about $10K right there in a separate septic, a 2 piece bathroom, and office and climate control for both (as well as permitting, creating plans, etc.). All things that would have already been in the house at the square footage we had to build. Plus grading for a large barn was going to be expensive. We found a place next to the house to put in a modest shed row 'barn' for a tack room, feed room and grooming, that will work with the topography of the land for minimal grading work. We did this to keep things cost effective. It's just my husband and I living in this house, it's not like we have kids to keep separated from my business. We're both fine with this situation. The door up the stairs to the main floor will have a lock on it. And I don't have a lesson mill program, I focus on quality not quantity. I've been teaching for over 20 years now. I keep about 8 weekly students at any given time. I get to know my students and my parents well... my students tend to stick around for years. Same for my boarders. We'll have 2 or 3 boarders at the new location. At our current facility 3 of our customers have been with us for 5+ years. At one point or another I end up paying most of my students and all of my boarders to house sit / dog sit / farm sit for us when we go on vacation. I'm pretty confident they are not going to bust the door down to access the main floor of my home. And they won't be there at inappropriate hours of the day / night anyhow. Vigil Carter - I guess you didn't read my last post. We priced out a 1 story 'ranch' with the same builder. 2200 sq ft was going to cost $209,000 THEN another $15K because of the sloped ground to add more courses to the crawl space foundation. This 1700 sq ft two story house, without walkout basement, came in at $178K pre-basement. The cost of the completely finished 840 sq ft basement, with a grand total heated sq ft of 2540, came to a total less than the single story 2200 sq ft ranch. Though we could have gotten a separate entrance in-law space, the in-law space would have been way smaller (by over 150 sq ft) and I would not have had an office that was separate from my main living space. I lift 50 pound bags of feed and hay nearly daily and my husband is military / infantry, we are active horse riders and hikers. I think we can handle interior stairs for another 12+ years. :) At that point if it starts to bother us then we can add a master suit to the side of the house (which we had already spec'd out anyhow but we just do not need at this time).