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GLA question

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jmedina

Thread Starter
Freshman Member
Joined
Jun 28, 2007
Professional Status
Licensed Appraiser
State
California
Did an appraisal inspection in which public records sq.ft. differs from what was actually measured at the time of inspection. Subject was built in 1990, and is located in a tract housing area. Subject has a completed finished bonus room which was constructed in a workman like manner in lieu of a third car garage. Public records indicate a total of 1732 square feet. I measured a total of 1970 square feet and addressed the reason why as mentioned above. Lender requested that I not include the bonus room in the square footage and appraise the property at 1732 square feet or get permits for bonus room. How do I address this situation which will be FHA/HUD compliant? Any advise from fellow appraisers would be appreciated. thx
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
"Lender requested that I not include the bonus room in the square footage and appraise the property at 1732 square feet or get permits for bonus room."

Accurate description of the Subject - the finished bonus room exists - appraising as if it did not exist is grossly misleading NO CAN DO.

"or get permits" - OWNER responsibility to "GET permits". The Appraisers' responsibility to verify and report whether the Site, as improved, represent a Legal, Legal Non-conforming, or ILLEGAL use under current Municipal Ordinance.

The Improvements ARE zoning/building ordinance Compliant as of the EDA - or not.

Due diligence re Highest and Best Use (which MUST be Legally Permissible "as-is") requires confirmation.

Simple: IF required by the governing Municipality EITHER BP and/or Certificate of Occupancy WERE obtained or were not.

Appraise accordingly either "as-is" legal, transferrable use OR subject to obtaining C.O. if required by the Municipality.

Which Municipality is the subject located in?
 
Last edited:

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Ask the lender if they are going to sign the report? You are the appraiser, you sign the report, you report what you know.

If there are minor differences, I may use the public record square footage because I round to the nearest .5 foot in my measurements. Also I don't measure the comparables and have to rely on public records for the square footage. In your case, it is substantial so do what you know is right.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
Did an appraisal inspection in which public records sq.ft. differs from what was actually measured at the time of inspection. Subject was built in 1990, and is located in a tract housing area. Subject has a completed finished bonus room which was constructed in a workman like manner in lieu of a third car garage. Public records indicate a total of 1732 square feet. I measured a total of 1970 square feet and addressed the reason why as mentioned above. Lender requested that I not include the bonus room in the square footage and appraise the property at 1732 square feet or get permits for bonus room. How do I address this situation which will be FHA/HUD compliant? Any advise from fellow appraisers would be appreciated. thx
Some builders were offering, as an option, a finished 3rd garage or a room, your choice. I don't know if this was your case. However, the builder records the GLA from the standard model with out the option of a bonus room.

Has the home sold since 1990? Are there other homes in the tract with the same option? That is important to demonstrate market acceptance and marketability.

Ask the HO if they bought the home that way and if they have knowledge of permits being pulled. Check with the local planning agency for permits.

You are not required to produce a permit. You can only state what lengths you went through to confirm permits.

As Mike suggested, obtaining permits is not your responsibility. You are to render an opinion of market value for the property with its structure.
 

Jerry Bone Jr

Senior Member
Joined
Feb 23, 2004
Professional Status
Licensed Appraiser
State
Oregon
You call it a "bonus room". Is it a converted garage? Is there crawl space or slab under the "bonus room" ?
 

Metamorphic

Senior Member
Joined
Mar 15, 2008
Professional Status
Certified Residential Appraiser
State
California
Appraise it at 1732, then add on value on a separate line for the bonus room at a footage rate that will equal what it would have appraised if it were all considered GLA if that's what you think the market reaction would be.
 
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