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Below Grade Finished Doesn't meet ANSI

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shrubberyvaluation said:
ANSI says to not count finished area under 7'. It does not distinguish between basement or non basement.
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It does distinguish between above and below grade. Why are people reading into it more that is there. Read the guidelines that the OP posted. It talks about GLA. Finished basement is finished basement. Not GLA. Utility is defined by the market. How are you going to find out the ceiling height of your comps?
 
I will use the exception code when ever it just serves to confuse the reader to use ANSI.
 
Dublin ohio said:
It does distinguish between above and below grade. Why are people reading into it more that is there. Read the guidelines that the OP posted. It talks about GLA. Finished basement is finished basement. Not GLA. Utility is defined by the market. How are you going to find out the ceiling height of your comps?
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ask FNMA that, they don't care, just hold up the process and do it! This is about "finished area" not GLA. It looks like to me this only matters if there is a sloped ceiling unless I missed something.

Attics, Lofts and Low Ceilings Level ceilings must be at least 7 feet high, and at least 6 feet 4 inches under beams, ducts and other obstructions. There is no height restriction under stairs. If a room has a sloped ceiling, at least one-half of the finished floor area must have a ceiling height of at least 7 feet. Otherwise, omit the entire room from the floor area calculations. If a room with a sloped ceiling meets the one-half-of-floor-area-over-7-feet requirement, then include all the floor space with a ceiling height over 5 feet. Lofts and finished attics must be accessible by a conventional stairway or other access to be counted. If you can only reach the loft by climbing a ladder, it’s not part of the finished floor area regardless of the ceiling height.

Interesting, so only one of the rooms on the level has to be over 50% to count all of the level over 5 feet. Kind of weird, but ok.
 
shrubberyvaluation said:
ask FNMA that, they don't care, just hold up the process and do it! This is about "finished area" not GLA. It looks like to me this only matters if there is a sloped ceiling unless I missed something.

Attics, Lofts and Low Ceilings Level ceilings must be at least 7 feet high, and at least 6 feet 4 inches under beams, ducts and other obstructions. There is no height restriction under stairs. If a room has a sloped ceiling, at least one-half of the finished floor area must have a ceiling height of at least 7 feet. Otherwise, omit the entire room from the floor area calculations. If a room with a sloped ceiling meets the one-half-of-floor-area-over-7-feet requirement, then include all the floor space with a ceiling height over 5 feet. Lofts and finished attics must be accessible by a conventional stairway or other access to be counted. If you can only reach the loft by climbing a ladder, it’s not part of the finished floor area regardless of the ceiling height.

Interesting, so only one of the rooms on the level has to be over 50% to count all of the level over 5 feet. Kind of weird, but ok.
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Q1. Why is Fannie Mae requiring appraisers to follow the Square Footage-Method for Calculating: ANSI® Z765-2021 standard? Valuations of residential property correlate strongly with Gross Living Area (GLA), yet to date there is substantial inconsistency in how appraisers determine it. Our adoption of the ANSI standard: • Provides a professional and defensible method for the appraiser. • Allows transparent and repeatable results for consumers of appraisal reports. • Creates alignment across market participants. One key factor in our decision to adopt the ANSI standard now is the recent emergence of new technologies, such as phone apps, which can measure houses, generate floor plans, and calculate GLA. In addition, the new desktop appraisal option Fannie Mae is launching requires a floor plan. Since appraisers are not inspecting the property personally for the desktop appraisal, we anticipate they will commonly receive the floor plan from a third party, so it makes sense that all parties (including the appraiser) would be using the same standards of measurement. ANSI is a standard that technologies can build to, other parties (such as real estate agents) can anticipate, and appraisers can create or consume with confidence.

My bold. ANSI is for GLA. Below grade is not considered GLA. What is so hard to understand.
 
Dublin ohio said:
Q1. Why is Fannie Mae requiring appraisers to follow the Square Footage-Method for Calculating: ANSI® Z765-2021 standard? Valuations of residential property correlate strongly with Gross Living Area (GLA), yet to date there is substantial inconsistency in how appraisers determine it. Our adoption of the ANSI standard: • Provides a professional and defensible method for the appraiser. • Allows transparent and repeatable results for consumers of appraisal reports. • Creates alignment across market participants. One key factor in our decision to adopt the ANSI standard now is the recent emergence of new technologies, such as phone apps, which can measure houses, generate floor plans, and calculate GLA. In addition, the new desktop appraisal option Fannie Mae is launching requires a floor plan. Since appraisers are not inspecting the property personally for the desktop appraisal, we anticipate they will commonly receive the floor plan from a third party, so it makes sense that all parties (including the appraiser) would be using the same standards of measurement. ANSI is a standard that technologies can build to, other parties (such as real estate agents) can anticipate, and appraisers can create or consume with confidence.

My bold. ANSI is for GLA. Below grade is not considered GLA. What is so hard to understand.
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Thank you for the clarification. So we don't use ANSI for basements because they have no guidance for basements.
 
Dublin ohio said:
You might want to review this https://singlefamily.fanniemae.com/media/30266/display It sounds like Fannie Mae has other opinions see FAQ 5.
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Yes this is what confused me. They just say "finished" area and in the same section they talk of basements.

• Basement is any space that is partially or completely below grade.
• The GLA calculation does not include openings to the floor below, e.g., two-story foyers.
• Finished areas must have a ceiling height of at least 7’. In a room with a sloping ceiling, at least 50% of the finished square footage of the room must have a ceiling height of at least 7’ and no portion of the finished area that has a ceiling height of less than 5’ can be included in the GLA. • If a house has a finished
 
shrubberyvaluation said:
Yes this is what confused me. They just say "finished" area and in the same section they talk of basements.

• Basement is any space that is partially or completely below grade.
• The GLA calculation does not include openings to the floor below, e.g., two-story foyers.
• Finished areas must have a ceiling height of at least 7’. In a room with a sloping ceiling, at least 50% of the finished square footage of the room must have a ceiling height of at least 7’ and no portion of the finished area that has a ceiling height of less than 5’ can be included in the GLA. • If a house has a finished
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Just a suggestion. Don't read each line in a vacuum.
 
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