1. Welcome to AppraisersForum.com, the premiere online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Gross Living Area Definition

Discussion in 'Urgent - Help Needed' started by Tracey Mizell, Dec 11, 2003.

Thread Status:
Not open for further replies.
  1. Tracey Mizell

    Tracey Mizell New Member

    0
    Feb 8, 2003
    Professional Status:
    Appraiser Trainee
    State:
    Louisiana
    We are having a "debate" with a local realtor over the living area of a house. Here's the deal: The house has a 3 car garage in which a portion of the garage has been enclosed and is heated & cooled with its own unit (does not share with house). This area is not accessible from the main house. Would this area be considered part of the living area for the purpose of appraising the home??

    Thanks for a quick answer!!!!

    Tracey Mizell
    Carlock & Associates
    Baton Rouge, Louisiana
     
  2. Dave Smith

    Dave Smith Senior Member

    0
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Wisconsin
  3. Tracey Mizell

    Tracey Mizell New Member

    0
    Feb 8, 2003
    Professional Status:
    Appraiser Trainee
    State:
    Louisiana
    So this area IS NOT part of the living area??? I say it is not but this realtor spoke to someone else this morning in another firm that told her since it is heated & cooled, it is part of the living area.

    Thanks,
    Tracey
     
  4. Soar Ohio

    Soar Ohio Sophomore Member

    0
    May 8, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Ohio
    When your feet stick to the carpet and you feel like bugs are crawling on you. That is my definition of gross living area.
     
  5. Dave Smith

    Dave Smith Senior Member

    0
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Wisconsin
    Tracey:

    Go to the top of this page and click on "Appraiser Links", then go the Federal Government Resources and click on ANSI for more than you ever wanted to know about calculating GLA. Also search the Fannie and Freddie guidelines. The fact the space is not directly accessible from the house is the problem with including it in the GLA.
     
  6. KD247

    KD247 Senior Member

    0
    Jan 24, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Most appraisers would agree that, at a minimum, "living area" must be contiguous to, and at the same elevation as, the home's main living area (in addition to being finished, ventilated, and heated). However there's no widely accepted clear-cut definition. ANSI standards are the most clearly defined, but (in this case) they are not widely accepted. Every market has a different concept of exactly what comprises GLA, and it can be misleading if you're the only one using the "correct" definition.

    The answer to your question depends partly upon your reason for asking. If you are appraising this home, your report will be clearest if the garage-room is dealt with as a separate amenity. (Treating it this way will not affect your estimate of value). If the broker is trying to decide what number to publish in the MLS, it might be appropriate to include the extra space if they're following a well known and consistently used local convention. A property's owner would probably include it, just for bragging rights.

    There's no "right" answer, but it would be a very small minority of appraisers who would agree with the real estate agent. Conversely, it's possible that nearly 100% of all real estate agents trying to promote the property would want to include the extra room in their published GLA.
     
  7. Carnivore

    Carnivore Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Tracey,

    Think about how your market would respond to this really nice mother in law apartment in the garage.

    Would they pay more for this or would they penalize it for not being consistent and conforming to the neighborhhod. Would your typical buyer want a two stall garage or would they want one stall with a party room for bad husbands?


    hmmmmmm
     
  8. Travis McGee

    Travis McGee Senior Member

    0
    Sep 18, 2004
    Why are you discussing this with realtors? I don't care what realtors say, we have our own definition of living area, they may think differently who cares what they think? Is their name on the appraisal? I thank them for their imput and get off the phone and do my own thing. Living area typically has access through main house, etc. Sounds like this is not , also doubt if it was even permitted garage conversions typically are not.
     
  9. Roger R. Patzold

    Roger R. Patzold Member

    0
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Virginia
    For me to call it living area it must have the same heat and air and be accessible from the main living area without having to go outside the main living area. Porches, garages, breezeways, etc are outside the main living area. If above the garage the stairs must be heated and cooled same as the main living area and have direct access from the main living area.

    If I have to go outside the main living area and I feel comfortable it can be considered not to be income producing I usually try to call it dettached living area and adjust for it as contributing value but not as living area.

    Hope this has helped.

    rpatzold@aol.com

    Please join me in a prayer for all those who are going to be far from Home this Christmas season defending our freedom's
    <><
    :beer:
     
  10. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    NO

    I absolutely would not count it in the GLA.

    I would count it on a separate line item.
     
Thread Status:
Not open for further replies.

Share This Page