In Illinois: GLA, GBA, and Attached Garages

[Two-Gun Pete]

Hello, all on these boards. I’ve lurked for some time, and have learned a bit, but I have a scenario on which I wanted this board's insight.



I am a Mortgage Loan Originator. I have a borrower in Illinois who wants to do a refinance. The subject property is located in suburban Cook County, just north of Chicago.


The appraisal was done with four comparables, of which one is/was the same home model as the subject. Except that the subject property is Larger, due to a second story addition that this comp does not have.



The Comp’s size was copied from the County Assessor’s office. In Cook County, the Assessor simply takes the exterior dimensions to arrive at the overall size of the building. However, BOTH the comp in question and the subject have attached garages. The appraiser noted that the subject has an attached garage, and used his measurements to get at GLA.

But, for this comp, the appraiser used the GBA/Assessor’s measurements, which clearly include an attached garage that should not be included in the GLA. The appraisal's photos also clearly show an attached garage as well. But wait! I found a Plat Survey from the County Recorder of deeds for the Comp, which clearly shows the dimensions of the building, and the existence of an attached garage.


What’s more, the comp is noted to have a partial basement on the Assessor’s web page, but the appraisal gives the Comp credit for a “full basement,” which would indicate a basement below the garage. [These are very uncommon in this part of Cook County.]



What, if anything can I do? My borrowers are beside themselves, asking me “How can a smaller house be worth more than ours?”



I thank you in advance your insight.

 

[Dublin ohio]

Your post is a little confusing. But I think you are trying to determine GLA vs gba. For single family gse work. GLA is only above grade living area. Garage is not living area. Gba typically not used for single family. Comparable sales should be calculated the same. If full 1004 appraisal. Appraiser should be measuring and not using county records

 

[Two-Gun Pete]

Your post is a little confusing. But I think you are trying to determine GLA vs gba. For single family gse work. GLA is only above grade living area. Garage is not living area. Gba typically not used for single family. Comparable sales should be calculated the same. If full 1004 appraisal. Appraiser should be measuring and not using county records

Hey, thanks for replying!

I apologize if I'd turned you around with my post. Yes, I understand that GLA is ONLY living space.


The issue is that for this appraisal, the comparable property in question, the appraiser is using Cook County Assessor's records. Cook County Assessor's records are simply an external measurement of the building. However, both the subject property and the comparable buildings include attached garages. You can see the attached garages in both the photos of the subject property, AND the comparable property in question.

So, with the comparable, he's using the external measurements from Cook County, which includes the attached garage, which artificially inflates the comparable's GLA.

However, with the subject property, he is using his own measurements, that correctly omit the attached garage from the estimate of GLA.


In sum:

Subject property = correct GLA
Comparable property = INCORRECTLY using external measurements from the county that artificially inflate it's GLA measurements.

Effect: The smaller comparable property is artificially larger by the appraiser's mis-use of GLA, which artificially reduces the subject property's valuation. Again, both properties are in the same neighborhood, approximately 150 feet away from each other, and highly similar, other than the subject's 2nd story addition.

I have a plat survey from the County Recorder of Deeds Office that proves that the county assessor's external measurements of the entire comparable property includes an attached garage that should NOT be used to annotate GLA.


How do I get the appraiser to acknowledge this error, and to fix it? The appraiser told us, "I can only use the Assessor's records. If you don't like them, tell the Assessor's Office."

 

[Dublin ohio]

How do I get the appraiser to acknowledge this error, and to fix it? The appraiser told us, "I can only use the Assessor's records. If you don't like them, tell the Assessor's Office.

The appraiser could call call the re agent for the comparable. Consult a third party source like realist. The appraiser could use some common sense and probably come to a reasonably accurate estimate of the size of garage for the comparable. It is called due diligence. Other than that. Good luck.

 

[ddnma]

Hey, thanks for replying!

I apologize if I'd turned you around with my post. Yes, I understand that GLA is ONLY living space.



How do I get the appraiser to acknowledge this error, and to fix it? The appraiser told us, "I can only use the Assessor's records. If you don't like them, tell the Assessor's Office."

Ask to speak to your lenders chief appraiser.

 

[andrew81]

I'd ask for a new report from a different certified appraiser and for a field review of the original appraisal.

 

[sputnam]

Cutting to the chase, you want to have the appraiser reconsider. Most Lenders have a process for just that... usually called a Reconsideration of Value. Gather your facts and data and present it to the appraiser pointing out (politely) where you think the appraiser missed something or got it wrong. Keep in mind that you can't tell the appraiser what the value should be.... only point out errors and/or offer additional data that you think should be considered. The final call on the appraisal will be the appraiser's.

 

[Tom D]

we have the same problem here with high rise condo GLA. the city is counting balconies as GLA on their records because the owner owns it. not knowing this, appraisers are using over stated GLA that includes the balcony. there isn't much you can do about it. only if the appraiser knew that from personal experience would they take it out.
but, having the evidence that your arear is doing the same with the garage, then the appraiser should change that GLA for that particular comp. if not, then another appraisal or review. but make sure the next one knows that fact, they may not.
that is a factual change, unknown to the original appraiser, who should then correct that GLA to the factual GLA on their report.
you don't get in trouble for the wrong recorded GLA, but you could get in trouble for not correcting it, once known why different.
the lender's review appraiser should ask the appraiser to correct it.