Measuring Condos

[DWiley]

Measuring/detrmining GLA ar certainly part of the scope of work. What are the tests for an acceptable scope of work? In plain English the tests are (1) what other competent appraisers in the area do, and (2) what clients expect.

 

[glenn walker]

The Reviewer is correct.

 

[CigarDad]

The Reviewer is correct.

If it is for Fannie Mae the reviewer is not correct.

Fannie Mae Selling Guide
May 30, 2017
Part B, Origination Through Closing
Subpart 4, Underwriting Property
Chapter 1, Appraisal Requirements, Documentation Standards

Exhibits for Appraisals

Building sketch and calculations

For a unit in a condo or co-op project, the sketch of the unit must
indicate interior perimeter unit dimensions rather than exterior
building dimensions (dimensions and estimates for gross living area
shown in the condo documents are acceptable).

 

[TRESinc]

If it is for Fannie Mae the reviewer is not correct.

more importantly what matters is the engagement letter. almost all the work i do for lending institutions goes to FNMA and the client-specified items greatly outnumber those from FNMA.

 

[hastalavista]

I am arguing with an AMC review appraiser. I did an appraisal of a condo unit in a building of 4 other units. I sketched the unit and disclosed that the GLA was from the condo docs. He is insisting that we we need to measure the unit and provide calculations. I told him that with attached units, I don't have access to all of the dimensions. I argued that in 26 years of appraising, I measured if I could but measurements are not required for condos.
If I am right, can someone give me something in writing I can show him? If I am wrong, then I am asking for a friend and not me!

(my bold)

Exhibits for Appraisals

Building sketch and calculations

For a unit in a condo or co-op project, the sketch of the unit must
indicate interior perimeter unit dimensions rather than exterior
building dimensions (dimensions and estimates for gross living area
shown in the condo documents are acceptable).

(Cigar's bold)

While you may not have to measure the condo, FANNIE seems pretty clear to me.
- The sketch of the unit must indicate interior perimeter unit dimensions
- Dimensions and estimates for GLA shown in the condo docs are acceptable

I interpret this as:
A. A sketch is required
B. The sketch needs to indicate the unit dimensions
C. If you can get those dimensions from the condo docs, you are good. If not, we still need the dimensions on the sketch

So, as long as you (a) have a sketch and (b) the sketch has the interior unit dimensions, you are fine. If not, IMO, you need to put them in.

Good luck!

 

[gregb]

Do the Fannie condo measurement rules apply to detached site condos? As in, interior measurement required and not exterior measurement?

 

[Peter LeQuire]

The correctly calculated living area of a condominium unit ought to be part of an appraisal report of a condominium unit appraisal. However, it's necessary to see what buyers think they're buying, and to determine the information upon which they make their purchase and pricing decisions. There are some condominium developments in which the areas of individual condo units reported by the condominium association and by the assessing authority include the units' pro rata share of all areas (not simply the sum of the living areas measured as ANSI considers appropriate or as FNMA requires)of the building the units are in.

Example: measuring a unit in a mid-rise building might show that the unit for which living area is being calculated is one, but the condominium association's records show the area of that unit (and all of the unit, as well) as the total area of the building (including halls, elevators, maintenance and equipment rooms, etc. divided by the number of units in the building. An appraiser failing to recognize what was conveyed in other units, as well as in the unit being appraised, may well apply inappropriate unit comparisons and miss the value of the property being appraised.

IOW, an appraiser needs to be sure of what the property information sources are reporting - living area of the individual units or the pro rata share of gross building area.

 

[Amy Perkins]

You need to verify the dimensions are correct, assessors make mistakes too; some only draw it from the plans.

 

[Tim The Enchanter]

(my bold)

(Cigar's bold)

While you may not have to measure the condo, FANNIE seems pretty clear to me.
- The sketch of the unit must indicate interior perimeter unit dimensions
- Dimensions and estimates for GLA shown in the condo docs are acceptable

I interpret this as:
A. A sketch is required
B. The sketch needs to indicate the unit dimensions
C. If you can get those dimensions from the condo docs, you are good. If not, we still need the dimensions on the sketch

So, as long as you (a) have a sketch and (b) the sketch has the interior unit dimensions, you are fine. If not, IMO, you need to put them in.

Good luck!

Some condos have so many ins and outs and funky dimensions and angles there is no realistic way you can measure inside.
This is when I am pleased to have them online. I don't have an example close to hand.
Others are a 3 story box, garage on the bottom, and peasy.

 

[Peter LeQuire]

You need to verify the dimensions are correct, assessors make mistakes too; some only draw it from the plans.

No doubt - but an appraiser using only the living area of the unit she measures risks understating its assessed and advertised area because the assessed/advertised areas of competing units in the same building will include their pro rata share of GBA (like common hallways, stairs, elevators, etc.). An "accurate" reporting of areas would account for the difference.