Help me with Old GBA versus GLA annoyance

[ValuMan]

doing a 2 unit appraisal. In checking the comps in the MLS I find all the agents list the GBA (units GLA + Garage space) as the GLA - but if you look at the county records - the GBA includes attached garage space and the GLA and you can be determined by, of course, just deducting the garage from the GBA. what the recorded GLA is. It's the same with the duplex I am working on.

So I realized this first time buyer of the one I am working on thinks the units are 1,840 sf or 940 sf per unit - and the agent thinks so too..... when in fact the unit measurements are 660 sf each and 1,320 total GLA They are a lot "smaller" than she thinks she is getting and the agent thinks he is selling.

I've read and reread the FNMA definitions etc. do we assume, for the little 2-4 unit income properties, the GBA for FHA/FNMA work does or does not include garage space in GBA of small income properties for the 1025 form?

I notice the a la mode program automatically adjusts GBA tback to GLA measurements in the 1025 form, calling it GBA, in the comparable sales grid. You have to disengage the math for that line if you want to include the living space and garage as the stated GBA taped (same as GBA in County records).

Advice Please! - I've created an annoyance that is now eating at me - what is correct for a FHA appraisal? Is the GBA everything that is involved in the units structure, including hallways and common areas if, say, a multi unit two story building, but EXCLUDING THE GARAGE in the case of 2-4 single level units with attached garages.

 

[Tom Woolford]

GLA is heated / cooled (living) space. See ANSI standard Z765:

"

The ANSI standards define “finished area” as “an enclosed area in a house
suitable for year-round use, embodying walls, floors, and ceilings that are similar
to the rest of the house.” Measurements must be taken to the nearest inch or tenth
of a foot, and floor area must be reported to the nearest square foot. Garages are
specifically excluded."
​

​

 

[ValuMan]

Sorry about the typo Thelp for Help.....! )) Doesn't let you edit the title only the text. Just noticed the a la Mode reports convert all references to GBA to GLA calcs including the cost appraoch too. Are they trying to tell me NOT to include the garage space in GBA for 2-4 units?

 

[ValuMan]

GLA is heated / cooled (living) space. See ANSI standard Z765:

"

The ANSI standards define “finished area” as “an enclosed area in a house
suitable for year-round use, embodying walls, floors, and ceilings that are similar
to the rest of the house.” Measurements must be taken to the nearest inch or tenth
of a foot, and floor area must be reported to the nearest square foot. Garages are
specifically excluded."​

UNDERSTOOD! but in 2-4 units does the gross BUILDING AREA INCLUDE THE ATTACHED GARAGE SPACE? :Eyecrazy:

 

[Michigan CG]

Do not include garage space for any type of assignment in the GLA. It is misleading. GBA would not include garage areas either IMHO.

GBA is mostly a commercial term and if I am appraising an apartment building the GBA includes interior hallways and common areas (laundry rooms, meeting rooms) and does not include garages.

A couple of years ago I appraised a 30 unit with built in garages and did not include them in GBA.

----------------

I fixed your title.

 

[AlwaysLearning]

Do not include garage space in GBA

The following is FHA definition of GBA
http://www.HUD.gov/offices/adm/hudcl...02appdHSGH.pdf (see page D- 119)

Gross Building Area
The gross building area is the total finished area (including common areas – hallways, interior stairways, etc.) of the improvements, above and below grade, based upon exterior measurements. Use same method for calculating GBA of comparable sales and rentals.

 

[ValuMan]

Do not include garage space for any type of assignment in the GLA. It is misleading. GBA would not include garage areas either IMHO.

GBA is mostly a commercial term and if I am appraising an apartment building the GBA includes interior hallways and common areas (laundry rooms, meeting rooms) and does not include garages.

A couple of years ago I appraised a 30 unit with built in garages and did not include them in GBA.

----------------

I fixed your title.

You are a Gentleman !!! Thank you

THANKS heaps - it was as if I got involved in a small matter that suddenly and foolishly seemed to take on a life of its own. Embarassing too.

The interesting thing I get out of this - as well as your kind help - is the number of misleading listings there are out there - Brokers and agents' and their Buyer Clients who think they are much larger units - when the agents (who don't know one end of a tape from the other) include as the Gross LLIVING Area, the County published Gross BUILDING Area, which does include the garage space. It is the case for every 2-4 unit property listed in that city in the local MLS.

Might be fodder for later lawsuits,among those parties, methinks!

 

[DMZwerg]

Just make certain you clearly state how you determined GBA in your report.
That way if somebody later questions you as to why it isn't 1800sf you can tell them where to go ...
.. er, I mean "where to go and find it in the report."

 

[CANative]

That ®ealtor is SO fired. lol

 

[Michael Martin]

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I would venture to say this is one of most common misconceptions appraisers have out there... finished basements and stairways are to be included in GBA but not GLA.