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ANSI® Z765-2021 Addendum Content

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Some of the guidelines set forth by ANSI could mistakenly imply greater precision in measurements than what is physically possible.
YES
wood framed construction houses are not always built to within 1" tolerances and may not measure 'square'.
YES...and a bulging form may make for a poured wall that isn't square either
the nature of tape measures sagging or stretching while under load or blowing in the wind.
Right and the laser is more precise (not accurate) but when there are bushes next to the house (and that's pretty much a given) you have to stand off from the wall. Are you perfectly perpendicular to the corner? (no) Are your targets perfectly perpendicular to the opposing corner? (no) Do you have an assistant to hold the target exactly perpendicular? (sometimes but are they?)
trees, mechanical equipment, or personal property may also make measuring to within 0.1' unachievable.
In other words, you get a good precise measurement of all walls about 1 in 4 or 5 times...I get that. And I agree someone will be sued over "measurement" perhaps with a property where the blueprints don't match by virtue of the architect or planner who included a sunroom as "heated space" and that is being interpreted as GLA. The term GLA needs to disappear.
 
there will not be a 0.4' difference in measurement for the same dimension
You've never surveyed have you?

It would be very easy to do that when you have a straight wall front and back, but the front contains rose bushes, and evergreen shrubs and an entry porch. The rear may have a deck and the AC unit, "stuff" leaned up against the wall... you have to offset to get an unobstructed view...and being perfectly perpendicular to the corners isn't achievable without a perfectly straight edge to apply it with. 5" error on a sixty foot run is not difficult to achieve.

One I ran into recently was also problematic. Square house but measuring down the sides was about 2' longer than it should be. The rear porch was a large patio with pillars. The two pillars next to the house were finished just like the house...are they part of the house? or the Porch. Most appraisers would say porch, but that was a continuous stuccoed wall...

1649866619444.png
 
Anyone have a clear simple paragraph that they are using in their report to show compliance with Z765-2021 that they would be willing to share with us?
This is exactly what you should be using.
The subject property was measured using the ANSI standard Z765-2021. Finished square footage calculations for this house were made based on measured dimensions only and may include unfinished areas, openings in floors not associated with stairs, or openings in floors exceeding the area of associated stairs.
 
This is exactly what you should be using.
The subject property was measured using the ANSI standard Z765-2021. Finished square footage calculations for this house were made based on measured dimensions only and may include unfinished areas, openings in floors not associated with stairs, or openings in floors exceeding the area of associated stairs.
That statement is only to be used if no interior inspection is made.

1649867424663.png
 
This is exactly what you should be using.
The subject property was measured using the ANSI standard Z765-2021. Finished square footage calculations for this house were made based on measured dimensions only and may include unfinished areas, openings in floors not associated with stairs, or openings in floors exceeding the area of associated stairs.
I believe this cert is only to be used if appraiser does not inspect the interior.

Just noticed Jim beat me to the punch. :)
 
For ANSI, I don't think anything you stated was overkill when it comes to disclosures and disclaimers....I may actually plagerize some of it.

We're being asked to be more accurate with inaccurate tools and varying procedures.

Is my tape sagging or stretching?
Is my laser hitting the true edge?
Am I measuring at chest height on the siding or ankle height on the foundation?
Vinyl, wood, brick, stone corners?
2x4 or 2x6 framing?

All of this creates inaccuracy in the process regardless whether you measure to the foot, tenth of a foot, inch or millimeter. Disclosing and disclaiming properly is the only way to CYA

My current concern is all about CYA and the additional liability that we have placed upon us when we state that we are in compliance with ANSI. When we make that statement, we state that every measurement we record is accurate to within 1". That is what it means to be compliant with ANSI. When you sign your report, you are certifying that your measurements are accurate to within 1 inch. If your measurements are not that accurate, you are not in compliance with ANSI. Its that simple. That means that if 3 appraisers measure a house and any one measurement is not within an inch of each other, then someone, or maybe everyone, is not in compliance with ANSI. That leaves you open to all kinds of liability from FNMA to USPAP.

My opinion is that requiring every measurement to be within 1" is a level of perfection that can not be achieved in the normal course of business. At this point we are all trusting that FNMA will be lenient and understanding that measurements might be off from one appraiser to another. Because they always have been. But we really have no reason to think that FNMA will grant us this grace. In the past FNMA did not have any regulartions regarding how measurments were taken. Now they do. You now have a legal obligation to be accurate to within 1" on every measurement. This should terrify every one of us.

I really hope to see some clarification from FNMA on this, like others I don't see how they can expect such perfection. But I'm not holding my breath. They want this precision for their data banks. They want perfect measurements for more accurate AVM computations. ANSI has very little to do with more accurate appraisals. Its all about more accurate data so they can eliminate the appraiser.

My advice is to measure carefully. Then Disclose, disclose, disclose.
 
USPAP Standards Rule 1-1(b) to not commit a substantial error of omission or commission that significantly affects an appraisal. This rule requires the appraiser to gather factual information in a manner that is sufficiently diligent. Standards Rule 1-1(c) requires appraisers to not render appraisal services in a careless or negligent manner. Appraisers must use due diligence and due care in performing appraisal services, including gathering factual data such as square footage.
 
Measurements that vary a small percentage are not a substantial error IMO
 
I have been using the below in my Limiting Conditions since about 2005 (with a few minor additions for the current FNMA/ANSI changes):

"LIMITING CONDITION #2 COMMENTS: STANDARDS FOR LIVING AREA MEASUREMENTS & FLOORPLAN DIMENSIONS

- ANSI Standard Z765-2021 is followed for measuring the living area of single-family residential buildings. The ANSI standard allows for circumstances that can exist where direct measurement of a structure is not possible. Access to the interior may not be available and the nature of the terrain, structure, or other obstacles may preclude direct physical measurement of the exterior in the time available. Building dimensions developed through some means other than direct measurement or plans can be susceptible to inaccuracy, as is the calculated area. Calculation of square footage developed under such circumstance will be identified as such when reporting the result of the calculation. The finished square footage of a house is to be reported to the nearest whole square foot for above-grade finished square footage and for below-grade finished square footage.

- MEASUREMENTS: Measurements are done to the nearest 1/100th of a foot, but reported to the nearest 1/10th of a foot per ANSI requirements. That is to say, dimensions on the floor-plan are in fact to the nearest 1/100th of a foot, but rounded to 1/10th of a foot in the displayed floor-plan dimensions.

- AREA CALCULATIONS: The actual calculation of the living area usually involves entering the measurements as a floor plan into the CAD software program Chief Architect, and letting it calculate the enclosed Gross Living Area, as well as other building areas. This is appropriate since many homes have floor-plans that are otherwise to difficult to manually calculate area for. Chief Architect uses a discrete version of Greens theorem to do this. The procedure is to perform “Make Polyline” on the exterior walls then “Open Object” on the resulting polyline. This displays the enclosed area. Open areas, garages spaces and utility areas can be similarly calculated and the resulting values subtracted from the Gross Floor Area to obtain the Gross Living Area.

INTERIOR MEASUREMENTS: Room placement and interior wall measurements allow judgment as to the appropriateness of a floor plan for a given buyer profile. So, it is considered important to show these as accurately as possible in floor-plans. Typically, reported interior wall measurement accuracy to within 1/10th a foot is considered adequate for most rooms. However, some rooms and especially closets may be too cluttered to take accurate estimates. Also, particularly in older homes, there may be hidden spaces between walls and double or extra thick walls that cannot be accurately measured. All interior measurements plus estimated wall thickness should add up to exterior dimensions. In fact, this is required by the CAD system. Consequently, to make the interior measurements reconcile to exterior measurements, sometimes slack has to be allowed. Some room dimensions may need to be extended or "slack" areas created. This should be indicated on the floor-plan as "SLACK". E.g. 10.5' (includes SLACK), -or the display of a "virtual" room called "SLACK".

- Differences to Tax Assessor Values: Tax assessor reported measurements are often derived from architectural building plans, which do not follow the ANSI standard. As such, they may differ from reported measurements done per ANSI. Also, contractors often deviate from the original plans as presented to assessors, so that the finished square footage of the house as built may be quite different than reported by the tax assessor. "



NOTES:
1. Chief Architect/Home Designer Pro allows you to put in measurements to whatever accuracy you desire, but then specify a different accuracy for what is displayed on the floor plan. So, although it seems a contradiction, your actual CAD measurements can be in 1/10,000 of a foot, - while what is displayed is only the value rounded to the nearest 1/10th of a foot. In fact, if you hover the cursor over the measurement in the CAD you will see the underlying more precise measurement. --- PERFECT!!

2. The actual GLA calculations are done in an Improvements Addenda - where problems specific to the subject property are reported.

3. Lot Sizes and property maps are a whole different ballpark.
Wow... I just use this. Started April 1st. No blowback.
NOTE: GLA was calculated in accordance with the ANSI Z765-2021 STANDARD for calculating square footage.
 
My current concern is all about CYA and the additional liability that we have placed upon us when we state that we are in compliance with ANSI. When we make that statement, we state that every measurement we record is accurate to within 1". That is what it means to be compliant with ANSI. When you sign your report, you are certifying that your measurements are accurate to within 1 inch. If your measurements are not that accurate, you are not in compliance with ANSI. Its that simple. That means that if 3 appraisers measure a house and any one measurement is not within an inch of each other, then someone, or maybe everyone, is not in compliance with ANSI. That leaves you open to all kinds of liability from FNMA to USPAP.

My opinion is that requiring every measurement to be within 1" is a level of perfection that can not be achieved in the normal course of business. At this point we are all trusting that FNMA will be lenient and understanding that measurements might be off from one appraiser to another. Because they always have been. But we really have no reason to think that FNMA will grant us this grace. In the past FNMA did not have any regulartions regarding how measurments were taken. Now they do. You now have a legal obligation to be accurate to within 1" on every measurement. This should terrify every one of us.

I really hope to see some clarification from FNMA on this, like others I don't see how they can expect such perfection. But I'm not holding my breath. They want this precision for their data banks. They want perfect measurements for more accurate AVM computations. ANSI has very little to do with more accurate appraisals. Its all about more accurate data so they can eliminate the appraiser.

My advice is to measure carefully. Then Disclose, disclose, disclose.
On many many homes you could send 12 people out to measure and get 13 answers. And while it is true that you are certifying that you used a particular standard, if push comes to shove the party claiming they were "injured" by the difference in GLA must prove damages as a result of the incorrect GLA. If thats like 4sf or 10sf or even 100sf no reasonable judge (or if gets that far - doubtful - jury) would award anything. Especially on a refinance.

But then again....McDonalds lost millions because the coffee some moron put in his lap at the drive thru was "too hot" ....lol
 
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