Finished versus Unfinished Enclosed Patio used as a Rec Room

[MMing5000]

The property owner has enclosed a 450 sf covered porch attached to the rear of the dwelling and use it as a rec room. Because the rec room has finished windows and doors similar to the rest of the dwelling and has electrical wiring for light fixtures, I commented in the report that it has a significant market value contribution as a living area and has, therefore, been included in the GLA.

The reviewer claimed that the rec room does not meet "ANSI standards" because it has a bare concrete floor and therefore should not be included in the GLA.

i responded that it is common for properties to have bare concrete floors as part of the living areas, and that even many opulent luxury homes have polished concrete floors throughout the entire house.

The reviewer is adamant that the bare concrete floor in the rec room is considered as "unfinished" living area and must be excluded from the GLA.

Does anyone have actual knowledge on FNMA seller's guidelines whether a rec room with bare concrete floor (not polished concrete floor) can be included in the GLA?

 

[Dublin ohio]

The property owner has enclosed a 450 sf covered porch attached to the rear of the dwelling and use it as a rec room. Because the rec room has finished windows and doors similar to the rest of the dwelling and has electrical wiring for light fixtures, I commented in the report that it has a significant market value contribution as a living area and has, therefore, been included in the GLA.

The reviewer claimed that the rec room does not meet "ANSI standards" because it has a bare concrete floor and therefore should not be included in the GLA.

i responded that it is common for properties to have bare concrete floors as part of the living areas, and that even many opulent luxury homes have polished concrete floors throughout the entire house.

The reviewer is adamant that the bare concrete floor in the rec room is considered as "unfinished" living area and must be excluded from the GLA.

Does anyone have actual knowledge on FNMA seller's guidelines whether a rec room with bare concrete floor (not polished concrete floor) can be included in the GLA?

ANSI does not consider bare concrete as being "finished". Painted, stained, stamped, etched, polished, etc. are all considered as "finished".

 

[MMing5000]

You're correct. Thank you.

 

[Surf Cat]

I commented in the report that it has a significant market value contribution as a living area and has, therefore, been included in the GLA

Just so I understand, let's say your subject property is 1,250 Sq ft and it's listed as such in public records as well. You're saying you were so impressed by the 450 sq ft enclosed patio that you utilized 1,700 sq.ft. sales as comps? Or, did you consider the enclosed patio to be valued at the same price per square foot as the original dwelling?

 

[Terrel L. Shields]

Enclosed porch...never GLA in my book, even when it contributes additional value.

 

[RCA]

The property owner has enclosed a 450 sf covered porch attached to the rear of the dwelling and use it as a rec room. Because the rec room has finished windows and doors similar to the rest of the dwelling and has electrical wiring for light fixtures, I commented in the report that it has a significant market value contribution as a living area and has, therefore, been included in the GLA.

The reviewer claimed that the rec room does not meet "ANSI standards" because it has a bare concrete floor and therefore should not be included in the GLA.

i responded that it is common for properties to have bare concrete floors as part of the living areas, and that even many opulent luxury homes have polished concrete floors throughout the entire house.

The reviewer is adamant that the bare concrete floor in the rec room is considered as "unfinished" living area and must be excluded from the GLA.

Does anyone have actual knowledge on FNMA seller's guidelines whether a rec room with bare concrete floor (not polished concrete floor) can be included in the GLA?

No doubt, it did not go through the same planning approval and inspection process as the main house.

 

[MMing5000]

Does that mean unpermitted living areas finished in a workmanlike manner can not and should not be valued in GLA?

 

[MMing5000]

Just so I understand, let's say your subject property is 1,250 Sq ft and it's listed as such in public records as well. You're saying you were so impressed by the 450 sq ft enclosed patio that you utilized 1,700 sq.ft. sales as comps? Or, did you consider the enclosed patio to be valued at the same price per square foot as the original dwelling?

Did you understan

Enclosed porch...never GLA in my book, even when it contributes additional value.

Enclosed porch...never GLA in my book, even when it contributes additional value.

i was not asking for personal opinions per "your book". But thank you for taking the time to respond

 

[sputnam]

This is the sort of question that you should be talking with your Supervisor about. That's what the Supervisor/Trainee model is for. In this case, you might also want to either take an ANSI class or buy and read the ANSI Standard and what FNMA/Freddie etc say about using ANSI to calculate GLA.

 

[Terrel L. Shields]

Between ANSI and FNMA guidelines, plus the 4000.1, one should be able to determine GLA from non-GLA. I am always amazed at folks wanting to make basements into GLA because they are finished, who want to include sunrooms, enclosed porches, enclosed garages, low lofts, etc. because they appear to be similar to a 'finished' area. The first thing I want to know when such spaces are enclosed are, "was the CHA upgraded to handle the extra space." If an air-conditioner is properly sized for 1,600 SF and you add 400 SF, will it function properly by simply extending the ductwork, or do you need to upgrade the entire CHA? Ditto garage conversions. Is it insulated above the garage? Many are uninsulated. On and on.