ANSI Question regarding a one story home

[djd09]

ansi reminds me of the muzzles they mandated for the public, while the elitists went to parties, but who knew?

 

[J Grant]

The problem is you probably can't tell for the comps. Most likely you are just going to have wild adjustments that cancel each other out. I would use the exception and explain. When you take floor coverings into account that 6'10" will probably be even closer to 7 feet.

Appraisers need to stop fudging their/our way around GSE requirements for ANSI such as "when you take floor coverings into account it will be closer to 7 feet."

If we see a low ceiling height and we measure it and it is lower than 7 feet, then it is. The reality of a ceiling height 7 feet, (which makes our appraisal more difficult ) does not mean we use the exception and explain. The Exception is for a very narrow set of conditions if we read it.

 

[Terrel L. Shields]

We CAN NOT , or the subject "simply do it the ANSI way" and then lump the sf both together in the grid, because doing it the ANSI way requires appraiser to NOT lump the sf under 7 foot ceiling .

If the SF adjustment is identical (and it is usually) then segregating by ANSI does NOT change the value of a property. The market sees it as a unified property and you should adjust it accordingly, otherwise you have the ridiculous situation of guessing at the comps ceiling height and fabricating a probable false scenario or making 200% or more in gross adjustments while the net remains very low.

ANSI is a measuring standard, not an adjustment grid issue.

 

[Tom D]

in the most recent summer 2022, Working R.E. magizine in an ansi article the author states "Just explain that in your area the math is based on total square footage, not just the five/seven rule. You may have to adjust in the grid or explain the difference in your analysis, but in reality, the new reporting does not impact our valuation analysis"
just when i thought the USPAP 100% perfectionists were gone, they have all reappeared as ansi 100% perfectionists.
i can see an underwriters head exploding with a separate breakout. appraisal stip: can you provide comps with the same 'negative' GLA features? and by the way, CU doesn't recognize those blank lines at the bottom of the market grid. love to see that CU report. some of the mindless 'do as you are told' comments on this blog is kinda scary. some of you sound like the 'little red guards' in mao's china. read about it and you will be shocked about people control.

 

[djd09]

the competition adopting voluntary standards which they don't even follow via waivers and such, and then whines about how long and expensive appraisals are , seems very anti competitive

 

[TerryRohrer]

We are not expected to use ANSI for the comps, we are expected to use it for the subject.
If the "wild adjustments" cancel each other out then the value comes out the same as it would have without those big adjustments. Big adjustments result from applying ANSI in these oddball cases but that is what the GSE's require so we are providing it to them.

That statement is not accurate. If your subject has a half story that doesn't meet the ANSI definition for above-grade finished living area, you don't include that area in GLA. If your comps have similar finished areas that do not appear to meet the ANSI definition for above grade finished living area, you should treat that the same as you have with the subject, regardless of how it is reported in MLS and Assessor records. Hence, the FNMA verbiage about the possible need to "adjust" the comps that everyone wigs out about.

"GLA for properties in local MLS systems and assessor records may not be ANSI-compliant. The appraiser may not know what method an MLS listing or assessor used to calculate the GLA. Through research and their knowledge of the local market, appraisers determine if the GLA provided through alternate sources should be adjusted. The adjustment process does not change the requirement to report subject GLA to the ANSI standard."

https://singlefamily.fanniemae.com/media/30266/display

 

[RCA]

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.

Standard ceiling height in the US, especially with newer homes, is 9'. So that is a low ceiling. I would treat it as GLA, since that is just 2 inches short of the required 7'. Use GX001. Then I would be sure to adjust the comparables for ceiling height as a separate line item, - if you can get some kind of adjustment. In particular, there should be some kind of adjustment for a 8-9' ceiling height comparable.

 

[Jayjay25]

Sometimes I feel like they are setting us up to fail. I can hear it now “the appraiser’s net and gross adjustments are above 50% and our proprietary AVM can do the same job with gross and net adjustments that are much lower. See how much more reliable our new technology is.

The mandated users of our appraisals have way too much control in what we do. Imagine if the restaurants could dictate what the health inspectors could or could not inspect or how they had to complete there jobs. There would be so many sick diners the whole industry would collapse similar to the way the mortgage/real estate industry collapses every cycle.

 

[djd09]

B. No employee, director, officer, or agent of the Seller, or any other third party acting as joint venture
partner, independent contractor, appraisal company, appraisal management company, or partner on
behalf of the Seller, shall influence or attempt to influence the development, reporting, result, or
review of an appraisal through coercion, extortion, collusion, compensation, inducement, intimidation,
bribery, or in any other manner including but not limited to

only fannie can can "influence" the development , reporting , and results

 

[J Grant]

Standard ceiling height in the US, especially with newer homes, is 9'. So that is a low ceiling. I would treat it as GLA, since that is just 2 inches short of the required 7'. Use GX001. Then I would be sure to adjust the comparables for ceiling height as a separate line item, - if you can get some kind of adjustment. In particular, there should be some kind of adjustment for a 8-9' ceiling height comparable.

That is NOT what the GSE's want - they want below 7 feet ceiling separated out of the GLA living area. I am not happy about it either but it is not negotiable.

How we handle the adjustments and the value is market driven, how we handle the sf break out per ANSI as an assignment condition is driven by the requirement.