Include In GLA Or Not

[Rich LeMond]

More than one way to skin a cat- another option would be to include it, and make a significant downward adjustment under the functional utility line, resulting in the same value as placing the amenity on a separate line.

 

[Mike Kennedy]

[QUOTE="Mike Seward, post: 2600659, member: 66283"During the remodeling process, a bedroom and bath was added to the rear of the house.

I'm not reading this as being Detached but rather Attached with exterior access, in the same manner as an attached garage without an access door via a common wall to the home interior, but not freestanding detached.

Maybe the OP can clarify.[/QUOTE]


OP#1 "To gain access to this bedroom and bath, one must walk outside through a sliding glass door in the family room, onto an open patio, then through an exterior door."

 

[Mark K]

OP#1 "To gain access to this bedroom and bath, one must walk outside through a sliding glass door in the family room, onto an open patio, then through an exterior door."

Which is exactly what you would do if the room addition was connected to the original dwelling. Walk out on patio, turn right or left, walk thru a door into the addition that is attached via a common wall.

 

[Tim The Enchanter]

"To gain access to this bedroom and bath, one must walk outside through a sliding glass door in the family room, onto an open patio, then through an exterior door."

Not GLA, but might have similar value to GLA.
Negative effect on your bottom line if you charge standard fee, because of the pita effect.
But, that has nothing to do with property value.

 

[Mike Seward]

Not GLA, but might have similar value to GLA.
Negative effect on your bottom line if you charge standard fee, because of the pita effect.
But, that has nothing to do with property value.

It is attached with exterior access. Thanks to everyone for your comments.

 

[Terrel L. Shields]

make a significant downward adjustment under the functional utility line, resulting in the same value as placing the amenity on a separate line.

I'm surprised someone hasn't suggested a "cost to cure" and beat a hole thru the walls to connect the two....that's all that is missing.

 

[Mark K]

I'm surprised someone hasn't suggested a "cost to cure" and beat a hole thru the walls to connect the two....that's all that is missing.

I'm thinking about $125 adjustment. Lowes has some pre-hung interior doors in that price range. Sound about right?

 

[Webbed Feet]

Subject was built in the 70's and recently remodeled. During the remodeling process, a bedroom and bath was added to the rear of the house. To gain access to this bedroom and bath, one must walk outside through a sliding glass door in the family room, onto an open patio, then through an exterior door.

Two appraisers appraised this property. (Relocation appraisal). I did not include the bedroom and bath in the overall GLA because one must walk outside in the elements to gain access to it. I called it an inlaw unit and and put it at the bottom of the grid, making market derived adjustments. I did this because my undertanding of FNMA guidelines is that to be counted as overall GLA there must be contiguous access to the area. I believe USPAP says we must follow FNMA guidelines.

The other appraiser counted the added bedroom/bath in the overall bedroom/bath GLA count. When pressed by the client as to why, the appraiser said " while access to the rooms is separate from the other areas of the house, in this market, this is not considered an inlaw suite. It is not marketed as such, nor does the typical buyer expecation condider this a separate in law suite."

Should it be included in overall GLA/bedroom/bath count or not?

Thanks for your thoughts.

You're belief in what the USPAP says is either stated above so simplified to the point of being misleading as a post due to what you left out, or is incorrect. Only if required as an assignment condition would FNMA guidelines involve any USPAP concern. A guideline is just that, not a rule. Even if a rule, it would not be a USPAP rule.

Just because the other appraiser did not like your label, and didn't know how to label or address that space, does not excuse including living area in GLA that either is not GLA or represents a substantial functional problem if it is.

 

[Webbed Feet]

I'm surprised someone hasn't suggested a "cost to cure" and beat a hole thru the walls to connect the two....that's all that is missing.

How is it you know that a toilet and shower would not have to be removed to install such a doorway?

 

[Tim The Enchanter]

I'm thinking about $125 adjustment. Lowes has some pre-hung interior doors in that price range. Sound about right?

You forgot the labor. The smallest number I can think of is $1,000.
I do look at stuff like that to see if there's an easy "cure"