Fannie messed up with ANSI

[SLittle]

2.2 Finished Area
An enclosed area in a house that is suitable for year-
round use based upon its location, embodying walls,
floors, and ceilings that are similar to the rest of the
house.

what does that even mean "based on location"? wtf

I think they mean that an area of a home without a heat source or any insulation might be suitable for year-round use in Hawaii, but that area wouldn't really be suitable for year-round use in upper Michigan.

 

[djd09]

I think they mean that an area of a home without a heat source or any insulation might be suitable for year-round use in Hawaii, but that area wouldn't really be suitable for year-round use in upper Michigan.

yeah that is what i thought too. doing an appraisal with what typically would be an enclosed patio. finished, separate heating source, but how do i know what it is like in december?

 

[alebrewer]

Well, we can define the market area. We can describe the market conditions, but we cannot make the market. When someone says that the "market" for say, homes with pools, is weak and most buyers discount it, don't you have some obligation to demonstrate that this is a valid observation (if not a fact?)

Absolutely correct. We don't 'make' the market, but we decide what geographical boundaries segment the subject market from other markets, no? That is defining the subject's market, right? The question to be answered (e.g. problem to be solved) regarding market boundaries, is (IMO) - where would a potential buyer look for an alternative property? Or to borrow from TARE: "market area is the defined geographic area in which the subject property competes for the attentions of market participants."

 

[djd09]

got a order today 8,600 sq ft. no way just because of ansi

thanks for clarifying the enclosed patio / ansi bs. where are all the "experts". res? mr. USPAP? internet lawyers? and there gone

 

[djd09]

i miss the hybrid promoting crew claiming that inspections and meausring were not even part of USPAP. want to see their quotes?

 

[Andee]

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.

I see your dilemma as well and read through the posts. I'm thinking that your below grade is one that you may not be able to exit from. So when you have a walk-out basement and it exits at grade in the back, is that still considered at grade level? Your walking out at a grade level with the rest of the backyard, the pool, your outdoor amenities, your not building into a hillside with no option for an exit.

My issue that I'm seeing is that the governing bodies that keep track of square footage for taxing purposes, while not always correct, are now showing smaller GLA for an exact model match because we now have to include open staircases in the ANSI measurement. I was at a house the other day and was off by just over 140 sf from the model match because it had 2 staircases that both had open area descent from the second to the first floor. So now I have to say that I'm not adjusting for GLA for this one property because it's the model match, and if it were not the model match I would make an adjustment. The other issue that I have run into is that the model match is showing a smaller GLA but there is nothing bigger to bracket the GLA now because I just had to add in staircases that were not considered 2 months ago. We all know that we are not going to get the many different inspectors throughout all the different governing bodies to change how they are measuring, so why would Fannie put this on us knowing that it will make every possible comp out there wrong?!?!?!?

 

[Fernando]

I see your dilemma as well and read through the posts. I'm thinking that your below grade is one that you may not be able to exit from. So when you have a walk-out basement and it exits at grade in the back, is that still considered at grade level? Your walking out at a grade level with the rest of the backyard, the pool, your outdoor amenities, your not building into a hillside with no option for an exit.

My issue that I'm seeing is that the governing bodies that keep track of square footage for taxing purposes, while not always correct, are now showing smaller GLA for an exact model match because we now have to include open staircases in the ANSI measurement. I was at a house the other day and was off by just over 140 sf from the model match because it had 2 staircases that both had open area descent from the second to the first floor. So now I have to say that I'm not adjusting for GLA for this one property because it's the model match, and if it were not the model match I would make an adjustment. The other issue that I have run into is that the model match is showing a smaller GLA but there is nothing bigger to bracket the GLA now because I just had to add in staircases that were not considered 2 months ago. We all know that we are not going to get the many different inspectors throughout all the different governing bodies to change how they are measuring, so why would Fannie put this on us knowing that it will make every possible comp out there wrong?!?!?!?

I have 2 level homes where you enter into a foyer with high ceilings with stairs going up and down a level. Depending on assessors records for that locale, I could deduct the open space above or the stairs going down depending if there was useable closet space under the stairs. Some homes don't have the useable space. Before ANSI, I had the flexibility to decided what to include to get close to the public records so I can compare subject to comps' public records. There is a consistency with how the assessors call out the gross area in that area and I try to follow it. It's called appraising to that local market.

 

[djd09]

Desktop appraisal clarifications
In the February 2022 Selling Guide update, we announced allowing the use of desktop appraisals for certain purchase
transactions. To further clarify, we added “traditional” to the description of the applicable appraisal report forms to differentiate
traditional appraisals from desktop appraisals.

Additionally, we added that when the effective date of the original desktop appraisal report is more than four months from the
date of the note and mortgage, a new appraisal is required. We also clarified that the floor plan for a desktop appraisal does not
have to meet the Square Footage-Method for Calculating: ANSI® Z765-2021 standards

 

[Andee]

Desktop appraisal clarifications
In the February 2022 Selling Guide update, we announced allowing the use of desktop appraisals for certain purchase
transactions. To further clarify, we added “traditional” to the description of the applicable appraisal report forms to differentiate
traditional appraisals from desktop appraisals.

Additionally, we added that when the effective date of the original desktop appraisal report is more than four months from the
date of the note and mortgage, a new appraisal is required. We also clarified that the floor plan for a desktop appraisal does not
have to meet the Square Footage-Method for Calculating: ANSI® Z765-2021 standards

Yeah...but how many of us are actually doing Desktops?...I know I'm not.

 

[djd09]

it reminds me of flip flop fauci at the baseball game without a mask but if they don't use ansi, why should you?