tier83455
Freshman Member
- Joined
- Apr 9, 2008
- Professional Status
- Certified Residential Appraiser
- State
- California
I have been an appraiser for nearly 20 years, and was an aspiring architect before that (majored in architecture, worked at an architect's office for 5 years prior to switching to my current profession), so know a little bit about measuring.
When it comes to condo GLA, I see too many appraisers insisting on measuring interior wall to interior wall (and usually point to FANNIE MAE XI, 405.06: Gross Living Area - 06/30/02 - guideline, or something similar) for the subject unit (and that is fine), but then turn right around and use developer/architect/tax assessor/the Realtors and MLS/Articles of Condominium, etc.'s GLA for most comps which typically base their measurements close to the method of measuring condos developed and approved by the American National Standards Institute, Inc., (ANSI) which state that "the square footage quoted for a unit is the approximate gross living area square footage of such unit and is calculated based upon the approximate distance between the exterior perimeter walls and the center of the demising walls between units. Such gross living area square footage includes portions of the perimeter walls, beams, ducts, chases, returns, and similar concealed areas which occupy a part of the gross living area of the unit. Typically, buyer will only have use of the airspace within the unit up to the interior face of each perimeter wall, which interior airspace will be smaller than the gross living area airspace."
You can see the inconsistency here as one measures the subject unit one way, then turn around and use a comp which based its measurement in another way, all in an effort to measure and figure out what exactly constitutes an "air space".
On top of that, in my market at least, each condominium projects/developers/architects, etc. differ in their definition of what exactly constitutes an "air space", "useable interior air space", "gross living area", "useable gross living area", etc.
In all of my condo appraisals, I state all of the above, and explain how I have derived at my own field measurements (I measure interior wall to interior wall), what criteria the developer/architect/lawyer/tax assessor/the Realtors and MLS/Articles of Condominium, etc., have used in deriving at their calculation (if any known), and how I have attempted to reflect and reconcile what is considered acceptable in subject's market area, and make an adjustment when necessary and deemed reflective of the subject's market. I also state that due to possible discrepancies, I have made an effort to utilize comps with little variations in sizes to minimize gross living area adjustments, and that the approximate gross living area square footages are provided for sale and comparison purposes only and are not intended to be and shall not be used as a statement of actual usable square footages contained within any unit or described in any condominium plan, and that the appraiser's sketch is included only to assist the reader in visualizing the property and understanding the appraiser's determination of its size in performed own field measurement, and is meant to be an approximation only and not to be relied on as a factual gross living area for the subject unit or in any marketing purposes.
Granted, on most interior condo units, we may be talking about a difference of 2 - 3 inches per wall, but in my area, I have many custom condo projects with outside units which have 1 - 2 feet thick perimeter walls, resulting in a difference of 50 sf up to 200 sf, which is pronounced even more in larger outside units. I know of an appraiser who measures interior wall to interior wall like the rest of us, and put this on the sketch, but also utilize developer's/assessor's GLA which was based most likely on architect's plans on the market grid, and then explain the thought process, thereby reconciling this apparent inconsistency. IMHO, I think this appraiser gets it, and has at lease made an effort to do his due diligence.
I am not pretending to be an authority on this issue even for a moment (for I am still learning), but I would like all of us appraisers to be a little more cautious when dealing with condo GLAs, and I would just like those of us in this great profession of ours to continue to have an intelligent discussion about it. I don't know if we could ever reach a meaningful consensus about which method of measurement is correct, but by continuing to educate ourselves through valid discussions like these, and by being diligent in producing the very best report possible, I think we would be assured of sustaining our profession and of providing a viable public service at the same time as a result.
When it comes to condo GLA, I see too many appraisers insisting on measuring interior wall to interior wall (and usually point to FANNIE MAE XI, 405.06: Gross Living Area - 06/30/02 - guideline, or something similar) for the subject unit (and that is fine), but then turn right around and use developer/architect/tax assessor/the Realtors and MLS/Articles of Condominium, etc.'s GLA for most comps which typically base their measurements close to the method of measuring condos developed and approved by the American National Standards Institute, Inc., (ANSI) which state that "the square footage quoted for a unit is the approximate gross living area square footage of such unit and is calculated based upon the approximate distance between the exterior perimeter walls and the center of the demising walls between units. Such gross living area square footage includes portions of the perimeter walls, beams, ducts, chases, returns, and similar concealed areas which occupy a part of the gross living area of the unit. Typically, buyer will only have use of the airspace within the unit up to the interior face of each perimeter wall, which interior airspace will be smaller than the gross living area airspace."
You can see the inconsistency here as one measures the subject unit one way, then turn around and use a comp which based its measurement in another way, all in an effort to measure and figure out what exactly constitutes an "air space".
On top of that, in my market at least, each condominium projects/developers/architects, etc. differ in their definition of what exactly constitutes an "air space", "useable interior air space", "gross living area", "useable gross living area", etc.
In all of my condo appraisals, I state all of the above, and explain how I have derived at my own field measurements (I measure interior wall to interior wall), what criteria the developer/architect/lawyer/tax assessor/the Realtors and MLS/Articles of Condominium, etc., have used in deriving at their calculation (if any known), and how I have attempted to reflect and reconcile what is considered acceptable in subject's market area, and make an adjustment when necessary and deemed reflective of the subject's market. I also state that due to possible discrepancies, I have made an effort to utilize comps with little variations in sizes to minimize gross living area adjustments, and that the approximate gross living area square footages are provided for sale and comparison purposes only and are not intended to be and shall not be used as a statement of actual usable square footages contained within any unit or described in any condominium plan, and that the appraiser's sketch is included only to assist the reader in visualizing the property and understanding the appraiser's determination of its size in performed own field measurement, and is meant to be an approximation only and not to be relied on as a factual gross living area for the subject unit or in any marketing purposes.
Granted, on most interior condo units, we may be talking about a difference of 2 - 3 inches per wall, but in my area, I have many custom condo projects with outside units which have 1 - 2 feet thick perimeter walls, resulting in a difference of 50 sf up to 200 sf, which is pronounced even more in larger outside units. I know of an appraiser who measures interior wall to interior wall like the rest of us, and put this on the sketch, but also utilize developer's/assessor's GLA which was based most likely on architect's plans on the market grid, and then explain the thought process, thereby reconciling this apparent inconsistency. IMHO, I think this appraiser gets it, and has at lease made an effort to do his due diligence.
I am not pretending to be an authority on this issue even for a moment (for I am still learning), but I would like all of us appraisers to be a little more cautious when dealing with condo GLAs, and I would just like those of us in this great profession of ours to continue to have an intelligent discussion about it. I don't know if we could ever reach a meaningful consensus about which method of measurement is correct, but by continuing to educate ourselves through valid discussions like these, and by being diligent in producing the very best report possible, I think we would be assured of sustaining our profession and of providing a viable public service at the same time as a result.
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