Joan Trice: CRN – Gross Living Area Measuring Standards Announcement

[Terrel L. Shields]

Ground level from street or ground level from lowest part of lot especially downsloping rear lots?

It meant ground level be it level, be it sloped...

 

[Fernando]

Many appraisers think that it's above level and square footage equally the same.
My pet peeve with some appraisers is that just by following ANSI, they think the gross area is comparable with other comps.
A 2 level home on flat level is not same gross area comparable with a downsloping same size home.
I find it misleading but many accept it since ANSI says that's the way you measure.

 

[CGinMN]

This is 100% above grade. The market calls this a split, not a 2 story slab on grade. I don't care what the standard is, I'm not putting this on the grid as 2-story with a 0sf basement. Standards are nice, but at the end of the day it's the appraiser's call, and rightfully so IMO.

 

[Overimprovement]

I think this thread has demonstrated that since appraisers will never have access to the method or standard of measurement of the homes we use as comparables, that it is REALLY the realtors and assessors (add builders in as well?) who ought to be getting a standard forced upon them. And training to boot.

The NAR could easily come out with guidance on this. I served as treasurer on my local realtor board one year, and I was amazed at the amount of mis-information and downright confusion that realtors have concerning GLA, above grade, below grade, living area, etc. From what I have seen in assessor records, I think some of that confusion stretches to them as well. Add to that the simple fact that in many, if not most, jurisdictions, the assessor never steps foot into a home. This is especially true of older homes. How many homes have we all appraised where the assessor's GLA is different (more than nominally) from what we discover--additions, open to below spaces, finished upper levels, garages which are no longer garages. Living area that USED to be garages, etc.

I think this is actually a major issue in appraising, is should be addressed somehow. I have no easy answers, but force feeding one standard upon appraisers doesn't seem like it will solve a single thing. The GLA of a home really doesn't matter in any absolute sense. It only matters RELATIVE to the GLA's of homes used as comparables. That does tend to be the largest line item adjustment in the SCA.

Desktops and hybrids where measuring is done by less experienced persons will only exacerbate these issues, IMHO.

 

[Mejappz]

View attachment 56842

This is 100% above grade. The market calls this a split, not a 2 story slab on grade. I don't care what the standard is, I'm not putting this on the grid as 2-story with a 0sf basement. Standards are nice, but at the end of the day it's the appraiser's call, and rightfully so IMO.

Exactly, go by what the market tells you.

 

[Overimprovement]

View attachment 56842

This is 100% above grade. The market calls this a split, not a 2 story slab on grade. I don't care what the standard is, I'm not putting this on the grid as 2-story with a 0sf basement. Standards are nice, but at the end of the day it's the appraiser's call, and rightfully so IMO.

Great example, all RE needs to be kept local. In my market, if there are steps up to the main living area (LR, kitchen, etc), and/or the level of finish is lower quality on the lower level, then I would call it a raised ranch in our local market vernacular. But I would have no problem comping it with split foyer homes. It is more similar to those than a traditional 2 story for sure.

 

[Fernando]

This is one of my clients guidelines: "in certain markets, finished basement/below grade areas may enjoy market acceptance as above-grade GLA. If finished basement/below grade area is being included in GLA, the appraiser must demonstrate market acceptance of this area as GLA by providing at least one similar comparable sale". There goes ANSI.

 

[Mejappz]

This is one of my clients guidelines: "in certain markets, finished basement/below grade areas may enjoy market acceptance as above-grade GLA. If finished basement/below grade area is being included in GLA, the appraiser must demonstrate market acceptance of this area as GLA by providing at least one similar comparable sale". There goes ANSI.

I completed one similar to what you are describing., There are no basements here. So, I had to go back five years to find a comp. Oh yeah, the other appraiser did not even mention the finished basement in the previous report like it did not even exist.

 

[Fernando]

View attachment 56842

This is 100% above grade. The market calls this a split, not a 2 story slab on grade. I don't care what the standard is, I'm not putting this on the grid as 2-story with a 0sf basement. Standards are nice, but at the end of the day it's the appraiser's call, and rightfully so IMO.

In some area, it most likely be called 2 storied if rooms done with permits.
If not, 1 storied over garage with storage rooms. Confusing.

 

[sputnam]

No. Try reading ANSI. A walkout basement is still a basement... and basement area square footage IS NOT Gross Living Area. And BTW, that's been the standard since before anyone started talking about ANSI. Yep, Realtors in some markets include and report ALL of the heated area in a lump. That does not relieve you of your obligation to measure, calculate, and report GLA. One say to handle that is to report GLA properly in the improvement description on page one of the URAR... and to report it the way your market does in the Sales Comparison Grid. Of course, you have to add comments explaining that is what you did and why you did it.