ANSI Question regarding a one story home

[djd09]

yes, tell them they have to obey

 

[djd09]

Q7. Can appraisers use the exception code to voluntarily opt out of compliance with the ANSI standard?

No

so , obviously, the op can comply with ansi and the exception code is null and void

 

[Zoe]

Call lender (your client) and FNMA also if underwriter with lender advises you too. Stay clean. Report back.

 

[Ariba]

sorry but ANSI is absolute for our profession now for GSE work. It is up to the lender what they loan on. We provide them with the information they need to make that decision

Regardless of whether most buyers would recognize difference between 6.10 and 7 feet, that is the cutoff point.

The house still has a kitchen and bath, it is on the sketch, but it is in the area of separate line item non GLA and explained.

BTW, many houses have a dropped ceiling and a higher roof line above. Removing the dropped ceiling would get the ceiling height higher going up to the beamed roof line. I wrote that as a possible cost to cure for a report I did with a similar problem - almost half the house had non GLA area it was 6.10 height but it got put on the grid as other useable space and adjusted for. I have no idea if the loan got done or not. (it was a refinance )

The lenders also got the memo about ANSI , I have no idea if it affects their lending decision, though technically it is not our concern. But the fact that it is a standard now means they might have gotten some guidelines on it as well .

So in the comparison grid, you would show +/- 455 GLA SqFt and room count 1, 0-bedroom, and 0-bathroom. Anything else would be misleading. This would raise a red flag with any lender. A far more rational way and using common sense would be to show 972 GLA SqFt and 1-bedroom and 1-bathroom and explain the ceiling heights in the addendum

 

[J Grant]

So in the comparison grid, you would show +/- 455 GLA SqFt and room count 1, 0-bedroom, and 0-bathroom. Anything else would be misleading. This would raise a red flag with any lender. A far more rational way and using common sense would be to show 972 GLA SqFt and 1-bedroom and 1-bathroom and explain the ceiling heights in the addendum

I am not any happier with this than you are. But we are required now to use ANSI, it is not an option. We have to make a declaration we did in the appraisal. (even though as you said, common sense and rational would indicate a different approach )
You can put the 1 bedroom and 1 bath in the other sf line for the below 6.10 area as a line item adjustment ?

If using ANSI makes a property such that it "raises a red flag" with a lender, or they turn down a loan because the GLA is too small or whatever, that is their decision to make

 

[The Bob]

You include the above grade non=ANSI rooms in the grid. The non-ANSI area of those rooms is treated separately on a line at the bottom of the grid.

Q16.
How should appraisers account for rooms located in above-grade finished areas that do not qualify as GLA under the ANSI standard?
While the ANSI standard is not definitive on this point, appraisers should include rooms located in above-grade finished non-GLA areas in the room counts (Total Rooms, Bedrooms, Bath(s)) in the Improvement section and in the Sales Comparison Approach grid of the appraisal report to comply with Uniform Appraisal Dataset requirements.

 

[Ariba]

sorry but ANSI is absolute for our profession now for GSE work. It is up to the lender what they loan on. We provide them with the information they need to make that decision

You include the above grade non=ANSI rooms in the grid. The non-ANSI area of those rooms is treated separately on a line at the bottom of the grid.

Q16.
How should appraisers account for rooms located in above-grade finished areas that do not qualify as GLA under the ANSI standard?
While the ANSI standard is not definitive on this point, appraisers should include rooms located in above-grade finished non-GLA areas in the room counts (Total Rooms, Bedrooms, Bath(s)) in the Improvement section and in the Sales Comparison Approach grid of the appraisal report to comply with Uniform Appraisal Dataset requirements.

So much for ANSI being absolute.

 

[djd09]

So much for ANSI being absolute.

fannsi is the law of the land except except except

 

[djd09]

and if they were going to over ride, that junk standard, why didn't they just update their own guidelines which included built into a side of a hill . it is not an appraiser problem, it is rule writing fiasco

 

[Fernando]

The house I did recently, which was very similar problem two of the comps in photos had low ceilings, however, like my subject the low ceilings were not in all areas. Without inspecting comps it would be impossible to guestimate what % of them were under 6.10. So I used the total sf of the comps but explained they had low ceilings in part, and because I put the subject bonus sf as a line item adjustment the values ended up similar as adjusted.

I also found a very small sf house with a guest house and the small sf of the main dwelling bracketed my subject.

ANSI has made it more difficult in cases like this but consider one of the reasons ANSI is required is because of cases like this- perhaps lenders got tired of loaning on properties only to find out later half the house was low ceiling or in an attic area-or more likely, the lenders did not care but the investors who bought the loans do. Somebody noticed it as enough of a problem to impose ANSI, so now appraisers are trying to get around ANSI? Apply ANSI as written, the appraisal will come out how it comes out, explain it was done that way because of the ANSI requirement.

I usually disapprove of ANSI and I still do.
However, ANSI does force the appraiser to consider unusual ceiling heights and below grade areas.
Most appraisers never notice these discrepancies when comparing to comps.

I usually try to compare subject with comps with these similar unusual characteristics.
6'10" is low compared to typical ceilings and I don't like them.

Below grade levels have their issues. My neighbor across street last week asked if I had water issues.
I don't but he does. His house slopes down and when heavy rain, water seeps into the below level causing major mold clean up.
A contractor told him with proper drainage, issue can be corrected at cost over $100,000. WTF.