Joan Trice: CRN – Gross Living Area Measuring Standards Announcement

[Tawfik Ahdab]

Yeah, OK, collateral whatever is trying to impose measuring standards.

We’ve heard about this before and it’s been beaten to death on his forum.

But hey, we need Joan Trice to save the real estate world. I got to say though she’s a great self-promoter, With emphasis on self.

CRN – Gross Living Area Measuring Standards Announcement - Appraisal Buzz

The Collateral Risk Network (CRN) announced today its formal endorsement of the gross living area measuring standard developed by the National Association of Home Builders (NAHB). This standard, published by the American National Standards Institute (ANSI), entitled Square Footage - Method for...

www.appraisalbuzz.com

Amateurs think that tweaking technicalities is the same as revolutionizing an entire field of expertise.

They make it seem that their imagined diligence equates to some sort of superior insight, as though revealing that perceived, or rather, imagined deficiencies of any sort and however minor are somehow fatal to the entire enterprise of appraising, and that only by the acumen that they bring can they save the appraisal profession from the incompetence of its own benighted participants.

 

[Elliott]

Here's an idea, why not ask a bunch of appraisers what they think the standard should be. If you were to task me, it is far, far better to adopt a consistent standard. Now I fully recognize that all states are not the same and if NJ wants to adopt ANSI and have exterior measurements be 24.1 or 24.2 feet x 48.2' they can knock themselves out. But if your state has assessor records that use a 'builder standard' or the measurement based on the exterior of the foundation wall, then you consistently apply that as your standard. Assessorss and appraisers lead in the determination of GLA. Realtors are not consistent.

As far as condos and townhouses, there is usually a uniformity in the market and unit sizes in a project should be consistent and correct me if I'm wrong, but unfinished wall to unfinished wall should not be different than ANSI.

But you can't pick two standards and ANSI overstates GLA a little.

 

[Cob]

This is just going to open up a bunch of arguments as to what is considered gross living area, I can see a LOT of arguments about basements, partial basements, additions with no heat, attics and garage conversions, etc......

 

[Sadie]

This is just going to open up a bunch of arguments as to what is considered gross living area, I can see a LOT of arguments about basements, partial basements, additions with no heat, attics and garage conversions, etc......

GLA by definition is above grade.

 

[Cob]

GLA by definition is above grade.

I am quite aware of that, I am talking about arguments from home owners, Realtors/agents, buyers/sellers, lenders, etc. this may in their opinion lead to a different interpretation as to what is to be considered gross living area.

 

[Mejappz]

Joan's hybrid scheme went bust, and now she's switched over to measuring houses. Well, rest assured, I will not follow anything coming from the ivory tower crowd anytime soon. I go by what the market says. Interesting that Joan took time from her European vacation to post such nonsense. You better believe ANSI is paying her well.

 

[Tawfik Ahdab]

Sadie,


“GLA by definition is above grade.”

That may be true for the GSE’s, But that’s not true for market participants in my market area. Believe me, there’s plenty of active and useful family life with direct access to the outdoors under street grade.

I suppose the people who promulgated the standards at Fannie and Freddie were born in the utter flatlands of the American plains and had no hillsides to hang off of or onto for household existence. .

 

[Fernando]

Data collectors would love to have a standard so they can feed into their algorithm in predicting values.
It's best not to have a standard so appraisers keep these data collectors off balance.
I can look at sources and see which gross area are more accurate and which are not. This works for us appraisers.

 

[Overimprovement]

Isn't ANSI already used by most appraisers?

 

[Sadie]

Sadie,


“GLA by definition is above grade.”

That may be true for the GSE’s, But that’s not true for market participants in my market area. Believe me, there’s plenty of active and useful family life with direct access to the outdoors under street grade.

I suppose the people who promulgated the standards at Fannie and Freddie were born in the utter flatlands of the American plains and had no hillsides to hang off of or onto for household existence. .

It is true for your market area because I work there. The vast majority of residential appraisers appraise using fannie/freddie forms and therefore use their supplemental standards. Using the peer standard, you are stuck with above grade area as GLA. If you are using ANSI, its above grade also. Does it make sense? Not always, but that is the fun life we are in. Pre 2005 I remember typing in for the basement area: all finished and included above. Worked best when you had multiple levels below grade.