How Will ANSI Measurement Standard Going to Improve Appraisal Accuracy?

[Terrel L. Shields]

Seems some rumor that ANSI standard will soon be required by Fannie Mae, et al. There was apparently some discussion thereof at the AARO conference recently. Seems to me that unless assessors, Realtors, builders and Architects also measure by the same standard, what's it going to help? False accuracy if you measure by ANSI but the comps are measured by different people, assessors, agents, etc. And how do you apply the ANSI standard on desktops, hybrids and 2055s? Inquiring minds want to know.

 

[CGinMN]

I’m not up on any debate/discussion, but isn’t the profession moving to Lidar technology? Not sure there will be any need for a standard, just approved apps.

 

[Elliott]

Assessor's frequently measure new construction based on the foundation (we got there first). The only iffy thing is how you treat the common wall of the garage and living area. I had a supervisor who I would show different Farmers Home Admin houses should have similar SF and the garage common wall should be included in GLA. He never got it.

Twenty years into fee work I found these guys who were 'big measurers' who did outside siding. Which made no sense because it only inflated the subject and all the other records were based on foundation.

I once tried to find ANSI standards and couldn't even find it. So maybe its a fiction or you have to go to architect school. It is better to stick to a common standard in your area and be consistent.

 

[Overimprovement]

No impact. Just standardized among appraisers. I have found agents are all over the place regarding attic vs GLA, basement vs GLA, what is a finished basement, etc. Saw a 'full finished basement' MLS entry recently with a few throw rugs over the concrete. That's it. Attention agents: putting furniture in a basement dont not make it finished.

 

[Mejappz]

Another useless idea by bureaucrats who have two million dollars in ”missing” funds. AARO were is the missing two million dollars?

 

[Tim Hicks (Texas)]

Actually, it puts all appraisers on the same page. Builder plans and architects use the same level of accuracy. The only people who will whine about it is old appraisers who don't like change and use weak arguments to support no change. The assessors can be hundreds of feet off ANSI or no ANSI. There is nothing we can do about that. However, by having our reports be more accurate with regard to GLA it only improves the appraiser's accuracy and opinion of value. We cannot control the inaccuracy of the data, but we can control our inaccuracy. None of you measure your comparable sales to make sure the GLA is correct unless you appraised the comparable sale yourself whatever method you use. So, your own argument defeats the way you do it now. Besides, if we only adjust based on +/-100 sf difference in GLA it will only matter when the assessor data is already way off anyway. What a bunch of whine bags! All I see is crying based on resistance to change or inability to see the improvement of your own product. Agents don't measure houses, they use assessor data. Assessor data is notoriously flawed far too often from lot size to GLA (in my market area it is). I have three counties where you can't depend on assessor lot size and they all have GLA issues on many properties.

 

[TruJa]

Actually, it puts all appraisers on the same page. Builder plans and architects use the same level of accuracy. The only people who will whine about it is old appraisers who don't like change and use weak arguments to support no change. The assessors can be hundreds of feet off ANSI or no ANSI. There is nothing we can do about that. However, by having our reports be more accurate with regard to GLA it only improves the appraiser's accuracy and opinion of value. We cannot control the inaccuracy of the data, but we can control our inaccuracy. None of you measure your comparable sales to make sure the GLA is correct unless you appraised the comparable sale yourself whatever method you use. So, your own argument defeats the way you do it now. Besides, if we only adjust based on +/-100 sf difference in GLA it will only matter when the assessor data is already way off anyway. What a bunch of whine bags! All I see is crying based on resistance to change or inability to see the improvement of your own product. Agents don't measure houses, they use assessor data. Assessor data is notoriously flawed far too often from lot size to GLA (in my market area it is). I have three counties where you can't depend on assessor lot size and they all have GLA issues on many properties.

I agree that we want to be consistently accurate and on the same page, and that the assessor's and builders are a mixed bag of semi-competency. Even appraisers get it wrong, and can't all agree on the standard (is the stairway in both floors or just 1 of a house without a basement? do you just cut-out the garage from a perimeter sketch or do you bump in the living area ~6" to the interior side of the garage?). An apples to apples comparison is what we want regardless of what the standard is, and while I "mostly" use ANSI standards, I also try to follow the local assessor's interpretation. Until we can reliably take people out of the equation (hat-tip Cubicasa), we are going to have a bit of a mixed bag trying to compare the size of houses.

 

[Mark K]

Surely it will help, especially if they require measurements to three decimal places. 18.345' for example.

After all, some appraisers believe it would make a difference because they think that they can produce an "accurate" appraisal to that level of precision. LOL!


To answer the question, no difference. Assessors take it from plans on new construction, realtors take the owner's word for it, and appraisers use different 'standards' of measurement. They will interpret ANSI to fit their appraisal model if necessary. And in the long run, a difference of a few sq.ft. means NOTHING in the grand scheme of things. A bad paint job will have more of an effect on value than a sloppy measurement technique.

 

[TruJa]

Surely it will help, especially if they require measurements to three decimal places. 18.345' for example.

After all, some appraisers believe it would make a difference because they think that they can produce an "accurate" appraisal to that level of precision. LOL!


To answer the question, no difference. Assessors take it from plans on new construction, realtors take the owner's word for it, and appraisers use different 'standards' of measurement. They will interpret ANSI to fit their appraisal model if necessary. And in the long run, a difference of a few sq.ft. means NOTHING in the grand scheme of things. A bad paint job will have more of an effect on value than a sloppy measurement technique.

Except when the realtor or assessor are 10-20% off (I come across it about 1-2x per year). I agree with your main point though, 100sf+/- doesn't matter.

 

[shrubberyvaluation]

Except when the realtor or assessor are 10-20% off (I come across it about 1-2x per year). I agree with your main point though, 100sf+/- doesn't matter.

100 sf absolutely can matter if it is a large percentage of the dwelling size. Do you not think buyers would pay differently for a 300 sf and a 400 sf condo? I agree that a few sq.ft. is meaningless.