Finished versus Unfinished Enclosed Patio used as a Rec Room

[J Grant]

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

Fannie, Freddie, FHA allows non-permitted but finished areas in GLA -you can look it up to verify-but then usually need to provide two comps with same and comment it is market accepted.
so you have two choices: hold your ground with the UW regarding the bare concrete floors that it is still GLA, or remove it and add it as a line item contributory value. Idk offhand if bare floors is a deal breaker in Anis or not. We have to follow ansi regardless of personal opinion - though i know of new construction million $ plus houses and condos here sold with bare concrete floors as "decorator ready",since many high end borrowers like to add their own custom floor choices.

I did not see the property, but I am wondering if there were other reasons UW rejected it besides the bare floors - you said it is wired for electricity - what does that mean - is it lighted inside or not ? how about ac and heat source, is the construction really eual to that of the main dwelling or inferior ?

 

[Surf Cat]

I did not see the property, but I am wondering if there were other reasons UW rejected it besides the bare floors - you said it is wired for electricity - what does that mean - is it lighted inside or not ? how about ac and heat source, is the construction really eual to that of the main dwelling or inferior ?

The OP (based on his original post) has an enclosed patio (porches are typically at the front of the house) and from the sound of it, a complete DIY job (the underwriter sees this as well).

I highly doubt that the homeowner provided approved plans and permits for the op to review upon his inspection to count this "opulent space" as an "addition" to the main dwelling. Probably has the original sloped, shed roof with some t11 siding, some windows and drywall thrown on there.

I was curious if the OP utilized larger GLA sales hence, my questions in post #4. Based on his/her answers, no wonder they're having trouble with the underwriter.

I commented in the report that it has a significant market value contribution as a living area

Based on what?

The op needs to find sales with enclosed patios to garner a market reaction to converting the patio. End of story.

 

[Tom4value]

2 questions I have.
1. Are they arguing about “finished area” or area “included into the GLA”?
2. You are in CA but I don’t know what part. Here in MA, if it is centrally heated determines if it can be included into GLA

 

[Dublin ohio]

2 questions I have.
1. Are they arguing about “finished area” or area “included into the GLA”?
2. You are in CA but I don’t know what part. Here in MA, if it is centrally heated determines if it can be included into GLA

They UW is arguing that a bare concrete floor disqualifies it as finished area per ANSI. The UW is correct. Period.

 

[Sadie]

Fork over the $29.99 and get yourself an ANSI guideline, ANSI specifically says you can have concrete floors.

 

[MMing5000]

Fannie, Freddie, FHA allows non-permitted but finished areas in GLA -you can look it up to verify-but then usually need to provide two comps with same and comment it is market accepted.
so you have two choices: hold your ground with the UW regarding the bare concrete floors that it is still GLA, or remove it and add it as a line item contributory value. Idk offhand if bare floors is a deal breaker in Anis or not. We have to follow ansi regardless of personal opinion - though i know of new construction million $ plus houses and condos here sold with bare concrete floors as "decorator ready",since many high end borrowers like to add their own custom floor choices.

I did not see the property, but I am wondering if there were other reasons UW rejected it besides the bare floors - you said it is wired for electricity - what does that mean - is it lighted inside or not ? how about ac and heat source, is the construction really eual to that of the main dwelling or inferior ?

Thanks for the thorough answer. Yes the rec room has lighting. The UW finally allowed the rec room to be added to GLA after submitting new close-up photos of the concrete floor as "smoothly" finished, not broom finished surface.

 

[Tom4value]

They UW is arguing that a bare concrete floor disqualifies it as finished area per ANSI. The UW is correct. Period.

Huh. Good to know. Must have missed it. Thanks.

 

[Dublin ohio]

Thanks for the thorough answer. Yes the rec room has lighting. The UW finally allowed the rec room to be added to GLA after submitting new close-up photos of the concrete floor as "smoothly" finished, not broom finished surface.

They are giving you the benefit of the doubt. Some smooth finishes can appear "polished" even though they are not. ANSI doesn't discern between "broom" finish and smooth finish. Bare concrete without some kind of stained, stamped, etched, polished or painted is not considered finished.

 

[Dublin ohio]

Huh. Good to know. Must have missed it. Thanks.

Really doesn't make a lot of sense. A smooth bare floor is not "finished". But a stamped or etched floor is. Stained, painted or polished I get. Oh well. Glad it worked out for the OP.