Gross Building Area

[John Papa]

I need some help calculating the gross building area on a 4-plex. Are garages, laundry rooms, and water heater rooms included in the overall calculation if they have no interior access, but are attached to the main building? Most definitions I've found are really vague.

Thanks in advance!

 

[Jim Onderisin]

If you are using the 1025 income form, try reading the definition on the form itself. My understanding of gross building area is that it includes all finished heated space, including common areas. It would not include garages, unfinished laundries, or any unenclosed areas, like covered balconies or porches. I've been working by this definition for some years and have never been challenged on it. Maybe today will be the day.

Oh, yeah...and it includes finished heated basement areas. These may contain one of the living units. But you have to be careful if you are doing FHA work because they have additional requirements for finished basement areas.

 

[Don Clark]

B) Jim,

I second that opinion. The term "Gross Building Area" is used primarily to note that there are areas common to all units in a 2-4 family dwelling but not exclusively used by any one unit. Such things as garages, porches, non heated areas, are not included. Such things as common entry areas, stairwells, and other interior heatedareas are included.

 

[DTB]

Jim,

Agreed except I don't include finished basement area of subject because of all the illegal garden apts. in the comps. I have no idea of the GBA of the comp basement . I just call out basement on another line.

 

[Scott Kibler]

Originally posted by mike neff@May 10 2005, 10:53 AM
Jim,

Agreed except I don't include finished basement area of subject because of all the illegal garden apts. in the comps. I have no idea of the GBA of the comp basement . I just call out basement on another line.

Me too.

 

[Otis Key]

Originally posted by Scott Kibler@May 10 2005, 05:08 PM
Me too.

Ditto!

 

[Beth Ryder]

In regards to the cost approach on a 1025, is everyone adding the basement on a seperate line? I always have but just recently saw another local appraiser's report on a 1025 and there was no basement area calculated on the cost approach. Is he wrong for leaving it out or am I wrong for adding it? <_<

 

[xm39hnu]

Gawd, Beth, if it's there, you calculate its cost. He probably forgot to include it.

 

[Jim Onderisin]

If an appraiser's reporting on the 1025 form, that person's got to be consistent with the definition of gross building area (GBA) pre-printed on that form. Either that, or they have to be sure to disclose in the report what it is that they did do.

Here's an example. There's a two-unit building, one unit is below grade in a high "English" style basement. What do you do with the GBA on that? I include the basement as GBA. In the cost approach, I'll treat it as finished basement area. In the sales comparison analysis, I'll include it in GBA, but I'll also insert a not in the basement section, indicating that this area is included in GBA. What would you do?

Some of the two- to four-unit buildings in the Chicago area present other types of problems. City occupancy permits indicate the number of legal units. If a property has an illegal basement unit, do you include that in GBA? Doing so forces the question of unit's legality. Also, our county records of the property's size can be (contrary to opinions I've heard) fairly accurate, but it depends on whether they include the basement finished area or not. If the property is a two-story two-unit with an unfinished basement, they sometimes don't. If the property is a three-unit with one in the basement, sometimes they do.

 

[DTB]

Jim,

I agree with the consitency part 100% within a report but not always from report to report.

If you are referring to the modern ( 1950's :rofl: ) Berwyn 2 flats w/ one in the English basement, I try very hard to use only those types as comps even if they are older sales. And do lotsa splainin'

The legal / illegal garden apt. in Chicago is more tricky. You "may" know the subject's legality but what about the comps? I've seen 3 unit status given to proerties by the city that I would have bet any amount would never get certified. :blink: And vice versa.

I stick with my experience that almost all the garden apts. are illegal until proven otherwise and do not include them in GBA.