Basement or not? Another ANSI conundrum. Visuals included.....

[sputnam]

It's now been.. what? 3 years since ANSI was adopted by Fannie? Of course, you can think what you will about the decision to require ANSI as the standard for measuring GLA in appraisals of single family dwellings based on complete interior exterior inspections.... but, isn't it about time.. if you are a residential appraiser.. that you actually bought a copy of the standard? or took a class?

ANSI has not changed any subject property. The dwelling is what it is and what it was. ANSI merely was an effort to standardize the methods used by appraisers to measure and calculate GLA.

 

[Carnivore]

Page 10 Figure 5 demonstrates it quite well how weird are reports will look to anyone who is not in our business. AKA public homeowner. Yes, I know they are not our client nor are they are an Intended User. They still get a copy of the Appraisal. It can get worse if the homeowner is a minority.

So take figure 5 on page 10 of ANSI and make that upper floor an unfinished attic. Leave the 1st floor as it is as Now we have NO above grade finished area!!!

We would put in our report the exception. This means you have no above grade finished area.

the code “GXX001 –” in the Additional Features field on the appraisal form and must explain why compliance was not possible.

Now would this be a rare occurrence? Yes! So the GSE's would understand that and why your report looks weird. The AMC checker won't. The minority will not either and sue you for discrimination. You will prevail in court but in the end you will just be a burnt slice of toast.

In conclusion we have to have standardized measuring. We can be picky and not accept weird houses as a defensive measure.

Oh, well I am glad I am letting my license expire in June. To Old for this chit.

 

[djd09]

.. that you actually bought a copy of the standard? or took a class?

that is right...buy the book, take the class...snake oil salesman the only thing more useless then ansi is USPAP

 

[Tom D]

i keep reading the same reruns here of the twilight zone's USPAP & ansi episodes. i myself do deny ansi, and USPAP, for bringing more confusion of our profession. where the insane have taken over the sane. the fervant ansi shall prosecute the sane. run djdo9, run.

 

[Dublin ohio]

If it is an atypical split, than it is an exception. The whole idea behind the exception code is so that they are measured the same way. Just because it may be built into a book on a corner or lifted higher doesn't change the design function one bit. It is a main level and a lower level that functions like a finished basement. Measure it how the design typically is measured... Levels below the kitchen typically function as a basement. They are all similar to a ranch with a basement. They're just elevated.

The exception code is for properties that do not have any above grade finished area per ANSI

Is there an exception process?

If the appraiser is unable to adhere to the ANSI standard, the appraiserwill provide the code “GXX001-” in the Additional Features field on the appraisal form and must explain why compliance was not possible. For example, berm homes with their entire square footage below grade would be eligible for an exception. The appraiser must provide justification for an exception and lenders are responsible for confirming the appraiser provided an adequate explanation. Fannie Mae will monitor for inappropriate use of exceptions (i.e., using methods other than the ANSI standard for homes that have typical above-grade square footage).

 

[djd09]

ansi has no exception code...they do not define 'basements' either...what a clown show

 

[residentialguy]

The exception code is for properties that do not have any above grade finished area per ANSI

Is there an exception process?

If the appraiser is unable to adhere to the ANSI standard, the appraiser will provide the code “GXX001-” in the Additional Features field on the appraisal form and must explain why compliance was not possible. For example, berm homes with their entire square footage below grade would be eligible for an exception. The appraiser must provide justification for an exception and lenders are responsible for confirming the appraiser provided an adequate explanation. Fannie Mae will monitor for inappropriate use of exceptions (i.e., using methods other than the ANSI standard for homes that have typical above-grade square footage).

You can't seem to see the forest for the trees. They write: "Fannie Mae will monitor for inappropriate use of exceptions (i.e., using methods other than the ANSI standard for homes that have typical above-grade square footage)." I agree!!! It is inappropriate to make an exception for typical! Appraisers should not use exceptions on typical homes.... it is used on atypical homes so that it reflects the way that kind of home is measured and functions. Appraisers were taking typical below grade and making it an exception to be called GLA. You can't do that. Of course value pushers loved to do that. If I have a 40x30 ranch built into a hill on a corner, that main level is still GLA. It is atypical and falls under exception. It will be compared equally to other 40x30 ranches' 1200 sq of GLA... and if that hill affected the value, then adjust for it on a line. Conversely, if I have a 40x30 2 level split foyer that the basement is sitting on grade, that is atypical and it would be an exception... you compared to other typical 40x30 splits... top 1200sf level being the GLA. If there is any market variance for the 2 ft basement grade, then make a single line adjustment.

 

[Dublin ohio]

You can't seem to see the forest for the trees. They write: "Fannie Mae will monitor for inappropriate use of exceptions (i.e., using methods other than the ANSI standard for homes that have typical above-grade square footage)." I agree!!! It is inappropriate to make an exception for typical! Appraisers should not use exceptions on typical homes.... it is used on atypical homes so that it reflects the way that kind of home is measured and functions. Appraisers were taking typical below grade and making it an exception to be called GLA. You can't do that. Of course value pushers loved to do that. If I have a 40x30 ranch built into a hill on a corner, that main level is still GLA. It is atypical and falls under exception. It will be compared equally to other 40x30 ranches' 1200 sq of GLA... and if that hill affected the value, then adjust for it on a line. Conversely, if I have a 40x30 2 level split foyer that the basement is sitting on grade, that is atypical and it would be an exception... you compared to other typical 40x30 splits... top 1200sf level being the GLA. If there is any market variance for the 2 ft basement grade, then make a single line adjustment.

You can take everything that FNMA says out of context and interpret it you way if you want. A hillside ranch with part of the main level "below grade" does not have any typical above grade square footage. So the exception applies. A Bi Level or if you prefer a split entry with the lower level completely above grade does have typical above grade square footage per ANSI and FNMA. So no exception. It may be an atypical split foyer style but it has typical above grade square footage. You can compare it to a split foyer that has below grade lower level. But that doesn't mean you change the subject to make it easier to compare. By you interpretation. A Cape COD that doesn't conform to the 7'/50% rule would be an exception and we all know that isn't so.

 

[sputnam]

that is right...buy the book, take the class...snake oil salesman the only thing more useless then ansi is USPAP

You should retire. Give up your appraisal credentials.

 

[Tom D]

yesterday's info is todays misinformation. today's standards are tomorrow's misinformation. except for FHA, they still keep their 1930's standards for their appraisals.