Low Ceiling Height And GLA

[JasoninAK]

I am appraising an older home that has ceiling heights that range between 6'6" and 6'10", I didn't find one area of the home with a ceiling height of at least 7' except in the basement (of course). The property has sold multiple times over the years. I know there are many other homes that have sold with similar ceiling heights.

This clearly doesn't meet ANSI standards. My initial reaction was to just tell the lender that the property didn't meet the minimum ceiling height and decline going further with the assignment. Some of the reading I have seen has said I don't have to follow ANSI standards and it is just a recommendation as FNMA selling guide doesn't list a minimum ceiling height. It certainly wouldn't qualify for FHA financing (it has sold FHA in the past of course).

Has anyone else experienced properties like this? The local market recognizes it as living space, other homes are selling like this. I don't have a problem appraising it and doing my best to find other homes that also have low ceiling and hitting the property for function and document exactly what i do and let the lender make their own decision if they want to loan on the property. I certainly don't want to follow through if it is a clear violation and no financing type will allow it.

It just seems to me that in years past a lot of homes that don't meet many different standards were selling, low ceilings, no egress bedroom windows, lot of other potential issues. I am always careful about these things but I am still constantly running into properties that should have never sold the way they did. I just did a liquidation appraisal for the VA. The home was an old mobile home that had an addition built onto it. Hell they weren't happy I appraised it as a mobile home, they wanted me to change it because a home inspector wrote a letter say that the property had been remodeled and didn't function as a mobile anymore even thought it had the metal chassis and basically look like an atco , lol. The property was just listed as a frame house for about 40% more than my liquidation appraisal value, I guess they had another skippy do it after me. The same home inspector also wrote a letter about a home I appraised that had 48" sill heights in the bedroom windows saying the windows met the spirit of egress. I am not trying to be a jerk or mess up sales. I don't try to be the engineer myself but some of these things are obvious and I am not going to knowingly give false information.

 

[Vermonter]

I am appraising an older home that has ceiling heights that range between 6'6" and 6'10", I didn't find one area of the home with a ceiling height of at least 7' except in the basement (of course). The property has sold multiple times over the years. I know there are many other homes that have sold with similar ceiling heights.

This clearly doesn't meet ANSI standards. My initial reaction was to just tell the lender that the property didn't meet the minimum ceiling height and decline going further with the assignment. Some of the reading I have seen has said I don't have to follow ANSI standards and it is just a recommendation as FNMA selling guide doesn't list a minimum ceiling height. It certainly wouldn't qualify for FHA financing (it has sold FHA in the past of course).

Has anyone else experienced properties like this? The local market recognizes it as living space, other homes are selling like this. I don't have a problem appraising it and doing my best to find other homes that also have low ceiling and hitting the property for function and document exactly what i do and let the lender make their own decision if they want to loan on the property. I certainly don't want to follow through if it is a clear violation and no financing type will allow it.

You answered your own question.

Ceiling height under 7' will not disqualify a property from FHA financing if this type of property is typical in the market...and I used to live up there and so I know it is. Same here in VT. Some of the older farmhouses have low ceilings and there's no negative market reaction to it.

 

[J Grant]

If lower ceilings are acceptable in the market for vintage/older homes, due t sales over past years, then state it and let it go. Ask area RE agents for confirmation. Not every buyer wants an older home for these very reasons, but some buyers like the old charm and are willing to put up with the odd quirks.

 

[JasoninAK]

You answered your own question.

Ceiling height under 7' will not disqualify a property from FHA financing if this type of property is typical in the market...and I used to live up there and so I know it is. Same here in VT. Some of the older farmhouses have low ceilings and there's no negative market reaction to it.

You are right on the FHA thing I just found the passage about it in my FHA handbook. I think I am confusing myself to no end with too much information. I feel like I know something and am just reading so many contradictory things. Even the information the appraisal institute is putting out says not to count it as GLA. Of course the appraisal institute is 2% education and 98% cover your ***.

 

[Mr Rex]

Compare the prior sales prices versus similar sized homes with normal ceiling heights to develop an appropriate market reaction to the low ceilings.

 

[JasoninAK]

Thanks guys, I feel like an idiot. I looked at a lot of things including other threads on here that kept saying I couldn't count it if it was less than 7'. I must have a problem because I feel comfortable knowing something then read three or four different takes on it and have no idea what is going on anymore. Probably need a lobotomy at this point.

 

[Don Clark]

If lower ceilings are acceptable in the market for vintage/older homes, due t sales over past years, then state it and let it go. Ask area RE agents for confirmation. Not every buyer wants an older home for these very reasons, but some buyers like the old charm and are willing to put up with the odd quirks.

That is the way I see it as well. Also, VA has specifically stated that ceiling height is not an issue. If the space is otherwise functional, such as in rooms with knee walls on 2 sides that are less than 7' and the only space that is 7' is about 4 feet, I consider the entire space as living area. Lot's of homes like that in may market.

 

[glenn walker]

People in the past were much shorter just look at the average height of a person in 1700-1890 ** Just do your appraisal and be done ** Cold Weather = Little People : ) LOL

 

[Don Clark]

People in the past were much shorter just look at the average height of a person in 1700-1890 ** Just do your appraisal and be done ** Cold Weather = Little People : ) LOL

Now they are taller, fatter, and more belligerent.

However, many older homes in my area(100 years old or older) have very high ceilings. In the past year I have completed 3 appraisals of homes over 100 years old.

 

[Mr Rex]

Aren't the indigenous people of Alaska shorter than the general population?