Fannie messed up with ANSI

[Fernando]

While walking with my dog late this afternoon in my neighborhood, I started reflecting about ANSI and saw how it worked on some of the houses I saw.
I was surprise many home downslopes with 2nd and 3rd levels below street level.
With ANSI, those levels would not be counted in GLA or square footage as ANSI would call it.
It's not the silly 1/10th foot which we should be worry about which is a pain in the as*, it's how we call the square footage.

Am I the only smart Appraiser who sees this dilemma?
Appraisers have to separate the square footage between above grade and below grade and same with the comps.
Before I get criticize for trying to compare my GLA close to public records with comps public records. Its the best we got in comparing subject with comps.

With ANSI, appraisers will separate the levels as well as the room count for subject and comps.
No exception and deviation as Fannie demanded.

If I was a reviewer (and thank goodness for y'all that I'm not), I can see from the subject's photos if the square footage was calculated correctly.
If not, as a reviewer, I'll tell the appraiser to separate the levels as according to ANSI, you fool.
Appraisers will have to redraw the sketch and have separate line for the below grade as well as adjusting for the comps' levels.

Also, I can see how this separation of levels can be misuse for fraud.
There is this house that sold quickly and house downslopes and has unobstructed million dollar view.
Across street is a house that backs to a hill with lower two levels below grade because they back to a hill. This house has been sitting on the market for months.
Even though it has some views from upper level, it's location is not comparable to the million dollar view home.
On paper, an unethical appraiser can use that million dollar home as a comp to justify an inflated appraised value.
Reviewers not that smart will accept that higher comp being close proximity.

I heard there is a new 1004 form coming in few years. We'll see if the form can address this above and below grade fiasco.

 

[sputnam]

Fernando,

There is no dilemma. Those houses were exactly the same on March 31 and on April 1. The implementation of the ANSI measuring standard did not change them in any way. As an appraiser, your joh..... your only job... is to develop and report an opinion of value in compliance with USPAP, government regulators, GSE rules, and your Client's assignment conditions and guidelines. If you're really an appraiser, the value of your subject property will be NO different using ANSI measurements than using whatever method you used before.

Please, learn ANSI and use it... or don't... but stop the drama. There isn't going to be doom because of ANSI. Many appraisers have been using ANSI for decades. Nothing bad has happened to them because of it.

 

[J Grant]

Appraisers confuse the physical rules of using Ansi, which are simple, with how to value properties, using phrases as " the market sees it as XX" Well all you have to do is say the market sees it as XX, and MLS and public records can report the areas as XX, but Ansi requires a breakdown of sf GLA /areas as XX and YY.

All that is needed then if the contributory value of YY, it is extracted the price from putting YY as a line item for an adjustment . It still is valued and the value still comes from the market. .

People are overly concerned about Ansi "accuracy". Users are not demanding we be engineer like precise. It just changes how to measure to either 1/10 or to the inch, it allows rounding to the whole foot at the end anyway. The total sf reconciliation is never going to be 100% accurate no matter which method is used. Ansi just sees all appraisers as using a same method, and for reporting which areas are finished GLA and which areas are reported as below grade or other living space.

 

[Fernando]

Fernando,

There is no dilemma. Those houses were exactly the same on March 31 and on April 1. The implementation of the ANSI measuring standard did not change them in any way. As an appraiser, your joh..... your only job... is to develop and report an opinion of value in compliance with USPAP, government regulators, GSE rules, and your Client's assignment conditions and guidelines. If you're really an appraiser, the value of your subject property will be NO different using ANSI measurements than using whatever method you used before.

Please, learn ANSI and use it... or don't... but stop the drama. There isn't going to be doom because of ANSI. Many appraisers have been using ANSI for decades. Nothing bad has happened to them because of it.

You, like many appraisers, still don't get it. ANSI changes the way how we call the square footage of a house.
If the GLA are below grade, there's no GLA. You have to put it on a separate line. It's not intuitive and nonANSI readers will be confuse.
Stop thinking like a Fannie Mae appraiser and think how a report should be understandable and not misleading for the public.
I always believe in making things simple and ANSI complicates the reporting process.

Am I the only one who sees the flaw in what ANSI has done to how we do our reports.
Good thing I'm not a reviewer because if I follow ANSI by the book, y'all appraisers need to do the GLA correctly.

 

[djd09]

they think one inch below is basement.

 

[Fernando]

they think one inch below is basement.

ANSI did make the rules and FANNIE said no exceptions.

 

[djd09]

ANSI did make the rules and FANNIE said no exceptions.

there is an exception , completely underground homes

 

[RSW]

Ii just appraised a house in Oak Ridge, TN which was built during the Manhattan Project. It is a small 2 bedroom home with an unfinished basement. The ceiling height on the 1st floor is 6' 11". According to ANSI, no area would be reported as GLA on the 1004. Thank goodness this was a VA appraisal.

 

[Dublin ohio]

If the GLA are below grade, there's no GLA. You have to put it on a separate line.

That is what GX001 is for. If you have a single level berm home. You use GX001. Which means you cannot adhere to ANSI. You then do it like you would have before ANSI. The finished area goes on the GLA line. How could you adhere to ANSI if you cannot measure the exterior of the home?

 

[Dublin ohio]

there is an exception , completely underground homes

More than one exception. Hillside ranch would be one. Berm home with one, two or three sides exposed. There is also a jurisdictional exception