ANSI Question regarding a one story home

[StrongTower]

Hello, this is my first time on this forum. I appreciate any feedback on an ANSI situation I ran into today. I am working on a Form 1004 FNMA appraisal. This is a one story residential single family home on a crawl space with no garage. I measured a nearly perfect rectangle house today that has a total exterior measurement of 972sf. Once I entered the home, the Living Room, and 2 bedrooms have ceiling heights of at least 7.5". The kitchen, eating space, laundry, mudroom and bathroom (a one bath home), have ceiling heights of 6'10". How do I address this? It is nearly 50% that does meet ANSI and 50% of the sf that does not. I appreciate any feedback on how to handle this situation. Thank You.

 

[Ariba]

I would include all SqFt in the GLA and explain your reasons. ANSI is not absolute. If you go strictly by ANSI this house would not be eligible for any type of mortgage transaction since it would have no kitchen or bathroom. Use common sense. What would the average buyer expect and how common is this in the market? Would buyers even know the difference between 6'10" and 7' ceilings? You might want to inform the lender before proceeding. Again, explain in the addendum what you did.

 

[CGinMN]

Technically, the GLA is only the area exceeding 7 feet, so 450sf or whatever, and the remaining area should go on a separate line at the bottom of the grid. The room counts are not impacted and will be 5/2/1. The 50% rule only applies to sloped ceilings, so not applicable here. Others will says used the exception code on this, but I don’t think so.

 

[Terrel L. Shields]

I would simply do the ANSI way, then explain in the grid how I am going to lump both together and adjust at the same SF. The fact I describe the house per ANSI, does not mean ANSI or FNMA is going to require I dissect the comps. Simply remark that since both are treated as the same as if GLA, the adjustment in the grid combines the non-GLA and GLA ANSI SF for purposes of comparison. It would be rather ridiculous to adjust down $65,000 on one line, the adjust back up $59,000 on another.

 

[djd09]

ansi is the anti market measuring standard. disclose and disclaim

 

[Overimprovement]

Research GX001, that is what I have used in a similar situation.

 

[Zoe]

It might not be a bad time to call the boss themselves (FNMA). Ask them what they would do? Communicate with your lender and the GSE. I would put in a call monday morning to both GSE and lender. If it is FHA or VA, I would call them also and document everything they told me.

 

[StrongTower]

I would include all SqFt in the GLA and explain your reasons. ANSI is not absolute. If you go strictly by ANSI this house would not be eligible for any type of mortgage transaction since it would have no kitchen or bathroom. Use common sense. What would the average buyer expect and how common is this in the market? Would buyers even know the difference between 6'10" and 7' ceilings? You might want to inform the lender before proceeding. Again, explain in the addendum what you did.

Thank you. This is what I was thinking too.

 

[StrongTower]

I would simply do the ANSI way, then explain in the grid how I am going to lump both together and adjust at the same SF. The fact I describe the house per ANSI, does not mean ANSI or FNMA is going to require I dissect the comps. Simply remark that since both are treated as the same as if GLA, the adjustment in the grid combines the non-GLA and GLA ANSI SF for purposes of comparison. It would be rather ridiculous to adjust down $65,000 on one line, the adjust back up $59,000 on another.

Sounds like a good approach. I agree, the down adjust then up adjust would be goofy. I did search for about 2 hours and did find two homes that based on photos also have very short ceilings but of course the agent did not measure them. I will describe what I am doing and just see how it plays out.

 

[StrongTower]

Research GX001, that is what I have used in a similar situation.

I had that thought also. I have one last week that had 6'3" ceilings in a very similar situation as this, but thank The Lord this deal died before I wrote it up!