In my markets the answers are Yes and Yes. The
segregating wall is the determining factor. Prior to 1980 it was common for ranches, raised ranches, split level ranches, capes and small colonials to have been built over full basements with only an exterior garage door providing car storage in the unfinished basement. They typically have no interior segregation. Your subject's municipal definition may differ. See below:
ANSI Z765-2003 Construction Standards ( OPTIONAL in most municipalities)
"The treatment of garage area in the standard allows practitioners to apply local customs. While garages can never be included in finished square footage, the standard does allow the area to be included in unfinished square footage. In the diagrams that accompany this standard, Figure 1 largely shows the garage (and the adjoining
laundry) as a structure attached to the main body of the house. As such, the garage is not typically treated as an unfinished area of the house but rather as a separate area simply referred to as “garage.”
However, if the garage is located beneath the main body of the house, some localities treat the area as part of the house and contributing to unfinished square footage. Practitioners are urged to heed common local convention with regard to garages."
Fannie simply relies upon the Appraiser to accurately describe the site improvements.
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Exhibits for Appraisals with Interior and Exterior Property Inspections
The following exhibits must accompany appraisals with interior and exterior property inspections:
• an exterior building sketch that indicates the dimensions.
If the floor plan is atypical or functionally obsolete, thus limiting the market appeal for the
property in comparison to competitive properties in the neighborhood, Fannie Mae requires a
floor plan sketch.
• calculations demonstrating how the estimate for gross living area is derived.
Part B, Origination Through Closing
Subpart 4, Underwriting Property
Chapter 1, Appraisal Guidelines, Appraisal Document Standards,
Report, and Property Inspections
July 30, 2013
Printed copies may not be the most current version. For the most current version, go to the online version at
https://www.fanniemae.com/singlefamily/originating-underwriting. 561
"Acceptable photographs include clear, descriptive, original images from photographs or
electronic images, copies of photographs from a multiple listing service, or copies from the
appraiser’s files.
• interior photographs, which must, at a minimum, include:
– the kitchen;
– all bathrooms;
– main living area;
– examples of physical deterioration, if present; and
– examples of recent updates, such as restoration, remodeling, and renovation, if present."
Printed copies may not be the most current version. For the most current version, go to the online version at
https://www.fanniemae.com/singlefamily/originating-underwriting. 560
