Is it GLA or Enclosed Patio?

[TXCBoy36]

I have a 4 Level home that I am appraising. This property is located in a market area where there is a good supply of similar style homes of similar standard size.

According to county records, this property measures at 2,400 sq ft, but after measuring the subject property, it has been determined that this property is in fact 2,100 sq ft with a 300 sq ft enclosed patio. This patio has a stone floor and wood siding, no carpet. I also found no indications of any insulation and no heating vents anywhere within the area of this enclosed structure. So, by my own assessment, I would say that this addition is nothing more than a very nice enclosed patio. I have been under the impression, that for an addition to be considered additional GLA it needs to be heated, carpeted and insulated.

Is this a correct assessment of additional GLA?

John:Eyecrazy:

 

[Randolph Kinney]

I have a 4 Level home that I am appraising. This property is located in a market area where there is a good supply of similar style homes of similar standard size.

According to county records, this property measures at 2,400 sq ft, but after measuring the subject property, it has been determined that this property is in fact 2,100 sq ft with a 300 sq ft enclosed patio. This patio has a stone floor and wood siding, no carpet. I also found no indications of any insulation and no heating vents anywhere within the area of this enclosed structure. So, by my own assessment, I would say that this addition is nothing more than a very nice enclosed patio. I have been under the impression, that for an addition to be considered additional GLA it needs to be heated, carpeted and insulated.

Is this a correct assessment of additional GLA?

John:Eyecrazy:

The first requirement is that the addition has to be livable year round. It does not have to have carpet. It should be similar in quality and workmanship of the rest of the home. It should not create any functional problems with the rest of the home. It should have its heating and cooling from a common source with the rest of the home.

Since you are saying it does not have similar quality and workmanship (insulation) and a lack of heating (livable year round?), it would not be GLA in my opinion.

 

[DonRico]

With these Enclosed Porches, the first thing I always look for is "heat".

Absent any heat source, this really couldn't be counted as Gross Living Area. It certainly has value as an Enclosed Porch. But it's not the same level of finish as the rest of the house.

You might want to suggest to the Homeowner that he contact the Tax Assessor for a reduction of his assessment. You could help him with that for the appropriate fee.

 

[GENTEEL]

It should have its heating and cooling from a common source with the rest of the home.

Is heating and/or cooling a mandatory confined necessity accounting towards measuring total living area? How would one measure or defne a home having 2 bed/1bath that has no central or base heating nor cooling amenity? Is there a given standard or rule? Just curious to know. Thanks.

 

[GENTEEL]

Just for the information, I've lived in a home in Long Beach, CA (cross section of Elm St & Willow/Long Beach Blvd. for those Californian appraisers who'd like to know) for around a year that had no heating nor cooling facility, yet had 4 genuine bedrooms and only 1 small full bath (functional absolescence). By the way, this home was my wife's grandpa's home. How would one rate that home in terms of heating/cooling definition to accomodate the total room counts and space as "living area"?

 

[KD247]

If the labeling decision doesn't affect the lender's requirements for the loan, I would probably opt to call it a 2,100sf home with a 300sf enclosed patio, just so the adjustments in the Sales Comparison Approach would be more accurate. (One example of where the estimated GLA might be crucial to the lender's decision would be a case where the home was less than 700sf GLA without the patio.)

In many areas, there's a huge difference in market reaction towards a home originally designed with 2,400sf and a home designed with 2,100sf and later enlarged by 300sf. Even if the addition could clearly be classified as GLA, in the Sales Comparison I like to emphasize the difference between the remodeled subject and sales with original floorplans.

 

[Doug Trites]

I have always used the heating and electrical as the standard for GLA. As far as requirement for a home, you would just have to make an adjustment for the cost to install a heating unit and finish the report. This question has come up in the south part of Michigan were there are grouping of Omish. The bank can not say no loan due to no cental heat unless they want to face a religous discrimination disput. So fig the cost and move on.

 

[GENTEEL]

By the way, is heat and/or cold air the only necassary component(s) to substantiate or facilitate a living quarter, be it a bedroom, bathroom or a fully enclosed patio (for examples) in order to justify the total "living area"?

 

[Randolph Kinney]

Is heating and/or cooling a mandatory confined necessity accounting towards measuring total living area? How would one measure or defne a home having 2 bed/1bath that has no central or base heating nor cooling amenity? Is there a given standard or rule? Just curious to know. Thanks.

Fannie Mae requires a home to have heat to be year round livable with the exceptions being Hawaii and Florida. It is a health and safety issue. A home with no heat, a free standing stove for heat or fireplace / heatilator for heat will not qualify for Fannie Mae and most lenders. The other standard is what conforms to the neighborhood so if your subject is the only one without heat, it does not conform and therefore may not qualify.

 

[GENTEEL]

The bank can not say no loan due to no cental heat unless they want to face a religous discrimination disput. So fig the cost and move on.

Heating and/or cooling of an area/enclosure of a home in order to support a "living area" has nothing to with religion. Oh my!