Atrium, Living Square footage or not

[Ken B]

How in the world is this related to scope of work? Do you count garages and porches as living area and consider that appropriate because you say so in your scope of work? Is that appropriate? What would your peers say?m:

Joyce appears to have adopted an "F it all" mentality. It looks like she is trying a reverse mentality approach to her issues.

 

[CANative]

For the record: The last 3 of these that I did I excluded the area from the GLA to be on the safe side. But I think an appraiser could develop an "accurate" opinion of value either way. How can it be misleading if an explanation of the methodology is included?

 

[Otis Key]

Please show me a "Standard" that sez you can't count it. Not everyone lives or dies by ANSI. Let's talk USPAP.

Standards Rule 1-1

In developing a real property appraisal, an appraiser must:

(a)
be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal;


(b)
not commit a substantial error of omission or commission that significantly affects an appraisal; and

(c)
not render appraisal services in a careless or negligent manner, such as by making a series of errors that, although individually might not significantly affect the results of an appraisal, in the aggregate affects the credibility of those results.

I think that should cover you Greg.

 

[PropertyEconomics]

For the record: The last 3 of these that I did I excluded the area from the GLA to be on the safe side. But I think an appraiser could develop an "accurate" opinion of value either way. How can it be misleading if an explanation of the methodology is included?

Actions speak louder than words .. I knew you knew the right way.

Right is right ... you know it and I know it. You dont include open sky area into heated living area. Its not rocket science and its not being appraised by a Caveman.

(And one back peddler hits the dust ... :new_all_coholic: )

 

[Mike Kennedy]

It's about your Scope of Work. It's your choice as to how you handle it as long as you fully disclose how and why you did it the way you did.

Simply astonishing.:Eyecrazy:

 

[CANative]

I think that should cover you Greg.

No, it does not answer the question. There is nothing in 1-1 (a, b or c) that covers GLA.

a. recognized methods and techniques. That's a pretty general statement given that the argument concerns a very specific item. It would be easy to argue that an interior atrium is an indoor amenity.

b. There is no error or ommission as long as the methodology and justification is explained satisfactorily.

c. This is one item, not a series of items.

Right is right ... you know it and I know it. You dont include open sky area into heated living area.

What if the subject was in a tract of identical floorplan houses and all were sold as 2,000 sf including the 144 sf atrium?

 

[PropertyEconomics]

What if the subject was in a tract of identical floorplan houses and all were sold as 2,000 sf including the 144 sf atrium?

What if Pigs could fly???

 

[Otis Key]

No, it does not answer the question. There is nothing in 1-1 (a, b or c) that covers GLA.

a. recognized methods and techniques. That's a pretty general statement given that the argument concerns a very specific item. It would be easy to argue that an interior atrium is an indoor amenity.

b. There is no error or ommission as long as the methodology and justification is explained satisfactorily.

c. This is one item, not a series of items.

USPAP will most likely never address square footage directly. It's already covered by ANSI and that has been endorsed by everyone from builders organizations, NAR, TAF members and the architec's national groups.

1a. Yep - one of those "gottcha" statements. If it's not typical, standard, normal or done by those deemed to be your peers........gottcha.
1b. Read 1a and then tell me it wouldn't be deemed an error.
1c. So you admit that it's not right and therefore an error.

BTW, nice sidetracking (aka hijack) of the thread. It's not about USPAP unless you get caught misrepresenting the SF or GLA.:icon_mrgreen:

And while we're at it - go read fannie, freddie, VA, FHA or any of the other guidelines. It is heated living area above grade.

 

[Richard Carlsen]

Again, I think you have to turn to the market and temper what the market's reaction is vis a vis the applicable appraisal guidelines.

I have two situations where the market overwhelmingly considers the area as living space. In one I only include it when the livability of the house (floor) plan would not be functional without using it. This case is the walkout basement. My market area, with the many hills, is inundated with houses on walkout basements. And every HO thinks that that lower level is additional living space and cannot wait to put a rec room and a couple of bedrooms down there.

The second one that I've started including in the GLA is the enclosed porch where there is heat and electric, especially water front properties. My discussions with the HO's shows that these areas get significant use for about 3/4 of the year with the HO's and the buying public seeing them as living space. Therefore, I've taken to including them in the GLA if they seem substantial enough to so warrant being called living space.

 

[CANative]

So you think that including an atrium area in the overall GLA represents a series of errors? Keep in mind that the standard requires an aggregate result. Do you think this is an error of omission or an error of commission? Keep in mind that either one would need to result in a signficiant affect on the appraisal. Just what is the effect?