My take on this was the exact opposite of Barry. I personally have done 2 before and counted as an amenity not as GLA. The biggest thing is finding indoor pools for comparable sales depending on your area will see how it comes out. The other thing is on your comparable sales how did the county treat the indoor pool (for adjustment purposes) also how is the market reaction for these? You may want to discuss with the listing agent on the comparable sales.
Any way you look at it explain and disclose what you did. GOOD LUCK.
My way of looking at things is to do them that is the simplest and easiest way for readers to understand. If the finished room adds to much GLA, it could become much bigger than the sales, then you will have a bunch of explanations that may or may not make sense or even be acceptable to the underwriter. If such a room is provable with a similar sale, then it may make sense to include it with GLA.
In this area, it would be very difficult to prove and I would, generally, put the pool room on a separate line. It's easier to explain and deal with.
I've done a couple of these homes and have used both methods. It really depended on how the room was intergrated into the home. One was built into the home, but with seperate heating and cooling systems to keep the humidity out of the rest of the home. The pool was basically a lap pool, about 12' x 30', so the room didn't add much to the GLA and the county included it as dwelling area. The second home enclosed the pool after it was built. This was completely the wrong thing to do. The whole house smelled like a YMCA locker room. :blink: The county said it was an enclosed patio and so did I, as it doubled the size of the house. Pool was non-functional anyways. Every house is different and poses unique challenges. Ain't it FUN!
Are the walls and ceilings finished the same as the rest of the house????
Probably not due to the moisture created by the pool. If the finish both exterior and interior are not the same as the rest of the house, count it separately. It's probably more like a 'Florida Room' finish.
I am generally with the don't count it crowd. I had one that was finished as nicely as the rest of the interior. However, it would have almost doubled the GLA, and definitely did not function like standard living space. I thought about the comparison to bathrooms at the time of this appraisal, and concluded that in my market bathrooms typically make up a certain percentage (rather small) of the GLA, and this would have made up almost half. I think if this were in an exclusive neighborhood, with houses that have gyms, or other oddball areas, I might include it in GLA. But in the ones I have done, I think it would be deceptive. One thing to make sure of: If you do or don't count it, make sure the GLA you use for the comps reflects your method. I am willing to bet that most realtors would put it in the GLA.
It also occurred to me when I did the well finished pool house that if I was going to try and sell it (I am not a broker...just speaking theoretically) I would probably list a price higher than what my appraisal was, and be willing to give it some time on the market. I would bet that like horse property owners, if it had exposure and marketing, someone would go for a higher price. I just wouldn't want to have any kind of time limitations.
I have done 2, 1 was last week. The first one that was done over a year ago had (what appeared to be) black mold so bad I asked dor an environmental inspection(VA Loan). Came back negative. I counted the building as a recreation building that housed a pool. Real simple, straight forward, no complaints. The one from last week and the first one I did about a year ago, were both attached to the rear of the house, and was almost as large as the house. Someone had more money than sense. The most recent one was given a minimum value as was the pool. The reason is simple. In my area a pool is good from about Memorial Day to Labor day. The indoor pool I guess would be year around. However, any comparable with a pool would not have the same use. I keep any adjustment to what the market reaction is, if any, and if there are no comps with a pool(almost as rare as hens teeth here), then I simply state that based on my experience over time, a pool, in my market may add as little as !0% of it's cost(proven from 1984 to present).
Now, the real problem is that FNMA does not like a positive across the board adjustment. They would like us to violate our methodology and give no value to the pool unless we can find at least 1 comp with a pool. The old addage that if the subject has a feature that is better than or lacking in the comp, a positive adjustment is indicated, means nothing to FNMA.
I've seen them where the entire home is built around the pool area (separate HVAC) and has glass walls so that it is an integral part of the home. It's living area. Another was 3 stories tall, had approximately 8000 square feet, a diving water fall, palm trees, etc. Looked like a hotel pool area. You went through this area to get to other areas of the home. Also living area. However, if you have a "sun room" with a pool attached to the rear of the home, no, I would separate it out. JMHO.