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Heated Area, GLA and other disagreements

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Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
I often wonder what other appraisers are thinking when they fill in that little box that says Gross Living Area. Never mind what listing agents think, they would count a carport if they thought it would raise the price. Personally the only thing I consider GLA is that area which is heated and
cooled by a central system unless there is not a central system. Then I make a judgment as to what is “quality” space within that area which hopefully is heated by something nailed or attached to the improvements. I suppose what I’m moaning about is the GLA I’ve seen in prior reports that borrowers always seem to have a copy of. It’s usually with FROGs, sunrooms and garage conversions......and I’m not referring to situations when the quality is similar and there is quality ductwork and adequate heat/air to that additional area. My biggest beef is with a garage
conversion which has carpet that looks like it should be in a bass boat, walls with cheap paneling and a cursed window air conditioner. Of course, the previous appraisal report includes the
conversion in the GLA and there isn’t even a comment about the quality, let alone a conversion.
Now I’m the bad guy who will end up “leaving out” 400 square feet in my report. Even if the the
quality is similar to the original improvements I treat the FROG or conversions separately in the
cost approach and the grid even if the difference equates to only $8 a foot. Naturally the
underwriters want to know why I’m adjusting in 2 areas on the grid........reading the extended
comments never seems to occur to them. What’s everyone else doing for those gray areas of
heated area? Maybe the solution is to only accept drivebys. :)
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
Bobby,

Typically, I would report what fits the definition of GLA. Yes, that would include the converted areas. I would, however, if there is a substantial quality difference, adjust for it separately.
 

Ben Vukicevich SRA

Senior Member
Joined
Feb 9, 2002
Professional Status
Certified General Appraiser
State
New Jersey
Bobby

Don't think too hard at the ranch to baffle the underwriter to get your way.

1) Converted Garages: list them on the URAR in the garage box as such: "1 car converted" and make your whatever adjustment for the nominal finish they have there.

2) Attics: Use the extra box at the bottom of the URAR: Type in: Finished Attic. The under Subject, Yes and Comps, Yes or No and make your nominal adjustments there.

They won't have a clue and the Bucks Ranch will still rock.

Ben
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Bobby, if it is not original construction or the add-on or garage coversion is not equal to the original construction (ie. bricked, floor raised, central h/a, etc) I separate it out no matter what the last appraiser did or the next appraiser did. About 1% of the garage conversions in this area are equal to the original construction. Of that 1%, I wonder how many have no insualtion in the walls. It is what it is. Plus, we have so many moronic home owners in this area, there are ample garage conversion comps most of the time. My advise to anybody that asks: If you want a bigger house, buy a bigger house, don't screw up the one you have. Plus, when you tell them you have to deduct for no garage they never seem to understand. My favorite conversion of all time: Linoleum that made a nice ramp over the step down, $0.50 wood paneling, and when I opened the closet door the garage door opener stuck through a hole in the wall and pressed against the closet door. What a waste of money. Then, when I mentioned that it could not be considered a bedroom, because their was no bath access without traffic through kitchen and living areas, I was told what an idiot I was. :)
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
So, Tim ..

I presume the value went to the bottom of the indicated range, once they told you what an idiot you were ..
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
As you might expect, I did not give them nearly the credit they wanted for their garage conversion. The figured that their home was worth what the 1,600 SF home down the street sold for (their value was also $10,000 higher than the actual sold price-why is it always that way?) They could not understand why I deducted for a garage, which they no longer had.
 

Ben Vukicevich SRA

Senior Member
Joined
Feb 9, 2002
Professional Status
Certified General Appraiser
State
New Jersey
Tim,

If you had used the "converted garage" method in the URAR, they would have thought you were a genius because you could have given them a plus adjustment rather than a minus adjustment. 8) 8) Something like Subject: 1 car converted. Comp 1: 1 car garage. Adjustment in Sale Comparison Approach +$X,zzz/whatever as the 1 car garage is usually inferior to an el cheapo conversion. Hell, maybe the owner can still pull his car in on that indoor/outdoor rug tile garage flooring. :lol: :lol: Got me. It's all in the mind's eye/wording.....but you're still telling it like it is..without hurting anyone's feelings. 8O 8O Surely, we must be sensitive in this business and never hurt an LO's or homeowner's feelings :roll: :roll: :lol: :lol:

Ben
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Loss of function, ie., no garage generally offsets any increase in value for additional GLA.

No central heat, no added GLA...period!
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Just to through a monkey in the wrench. What do the County Records indicate? Do they seperate out the garage conversion for GLA? Personally I utilize another house with a converted garage. Because the county records here do not seperate these areas out so as to compare apples to apples and not oranges.

Ryan
 
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