Can Enclosed Garage be counted Living Area

[Kenneth Reynolds]

Just finished ABII and the instructor announced that an enclosed garage, regardless of whether it is ducted for heat and air can never be considered living area.
Sure would like someone else's take on the subject.

 

[Mountain Man]

It can be GLA, but it has to be built out and finished equal to the rest of the house. Most successful conversions/additions I've seen cost 15K or more to complete. More like $25-30k if you hired a contractor. Simply removing the garage doors and laying carpet is not going to get it.

 

[Steve Owen]

In addition to that, it might be "equal" to the house in terms of being good enough to count as GLA, but still not as good in terms of functionality or even finish.

Think of it this way... are the kitchen and the bedroom "equal?" So, even if it is nicely finished and could count as GLA, it may still not be the same, when compared to other property with the same GLA or in the cost approach.

I've found that, in some cases, it should not be counted as GLA, in other cases it could, and would be worth just as much as the rest of the living space, and in still other cases, it is GLA, but not worth as much as the rest of the living space. This is really the appraisers call, IMHO.

The best bet, in most cases, is to consider this space separately in the cost approach. The best bet, in most cases, is to find comparable sales that also have garage space finished out for use in the sales comparison approach.

 

[Joyce Potts]

That news to me.

I didn't realize there was any right or wrong answer, but generally speaking ducted for CHA is a big determiniation.

I think the better answer is let your market tell you whether it recognizes it at the same value psf vs. one with the same sf without a garage conversion.

This is another topic where most on the Forum don't agree. (slopping garage floor, step down, etc.)

This rates right up with with detached garage apartments. I never included in the GLA but continue to bang my head against the wall when it comes to the new 'urbanism' communities like Celebration or Baldwin Park here in Central Florida. Even the counties are including detached garage apartments in the GLA in many instances.

So I don't know if there is any one right answer--much less know what the right answer is.

I say invoke the common sense approach. Whatever you decide, explain it thoroughly and leave nothing for the reader of your report to assume.

 

[Steve Owen]

I think the better answer is let your market tell you whether it recognizes it....

That's the right answer... both for value and for GLA determination. Everything else is wrong.

 

[Tim Hicks (Texas)]

That news to me.

I didn't realize there was any right or wrong answer, but generally speaking ducted for CHA is a big determiniation.

I think the better answer is let your market tell you whether it recognizes it at the same value psf vs. one with the same sf without a garage conversion.

This is another topic where most on the Forum don't agree. (slopping garage floor, step down, etc.)

This rates right up with with detached garage apartments. I never included in the GLA but continue to bang my head against the wall when it comes to the new 'urbanism' communities like Celebration or Baldwin Park here in Central Florida. Even the counties are including detached garage apartments in the GLA in many instances.

So I don't know if there is any one right answer--much less know what the right answer is.

I say invoke the common sense approach. Whatever you decide, explain it thoroughly and leave nothing for the reader of your report to assume.

Joyce,

What the county or RE agents do has nothing to do with what we do. The most important thing to remember is to not perform a misleading report. Call it like it is. If it is a garage conversion, call it a garage conversion. If it is a garage apartment, call it that. If it is so typical, they you should have comparable sales with similar improvements and it is not a problem. Garage conversions do take away garage parking and this should be considered. Many times the functional utility of garage conversions is ridiculous. How often do you have to go through a laundry room to get to a bedroom in a typical home? The level of quality should also be considered.

The most important thing to remember is don't do something just because everybody else seems to do it. Do what is correct. We are not here to make pretty reports. Separate these type improvements out and find like kind comparable sales. If there aren't any, then make market based adjustments.

 

[Kenneth Reynolds]

Thanks. If I understand the jest of what you're saying...I consider the sf what I feel it is with anexplanation about what it is, i.e. enclosed garage.
Some one mentioned illegal conversion but if the county appraisers property card reflects the area in the footprint and counts it in the living area then we must assume a permit was pulled, right?

 

[sunnycal]

No don't assume permits were pulled. The assessor has a different agenda than an appraiser. They may just want to up their taxable square footage. If zoning requires 2 car covered/enclosed parking then a permit would not be issued. Square footage only depends on your physical inspection and measurements. It should be shown separately on your sketch with separate value (positive or negative) given in the market analysis/cost approach and then adjustments based on market data made in the grid. Adjustments for parking must also be included in the market analysis.

 

[Mike Kennedy]

http://appraisersforum.com/general-appraisal-discussion/121301-permits.html#post1375768

 

[Lawrence R.]

Legal vs Not.

If the market makes no determination(doesn't care) if the garage converted 12 years ago had a permit pulled, and is willing to pay X amount for it based on your market research, why would we not assign a value to it. Seems to me like it wouldn't matter permit or not.