Square Footage question in Cleveland

[Mejappz]

One of the reasons there is no uniform standard for measuring is that every market is different. What may be considered a Living area or GLA in Ohio may not be the same as Florida. I finished one last week where GLA did not affect the sale price. This was an older neighborhood with most houses built in the 1930s. It was all about Condition, Site Area, and baths.

 

[Joe Flacco]

This post concerns an apparent discrepancy in square footage for a property I'm trying to close on 9/30, in Cleveland, Ohio. The appraisal already came in slightly above the closing price, which I'm happy about. However, I have a concern, detailed below.

The seller's original listing had the property listed at 3,640 square feet. The appraisal that I ordered came in at 3,336 square feet, about a 8.4% reduction. However, the drawing that the appraiser used to justify this calculation seems problematic to me, as this second figure STILL seems too high. I show the drawing here, taken directly from the appraisal report:

View attachment 55708

Note that the eastern portion of the house is shown to have an identical footprint for both floors:

View attachment 55709
This would be accurate if the second floor extended over the entire first floor. In reality, however, a large portion of the first floor is not covered by the second. The view through the northern window shows that the second-floor loft does NOT extend to the north wall:

View attachment 55710

A photo of the interior copied from the appraisal report shows the same gap:

View attachment 55711
In my mind, an accurate portrayal of the floor plans should take into account this gap, as follows:

View attachment 55712

I read in ANSI Z765-2020: Square Footage that "openings to the floor below cannot be included in the square footage calculation." I am worried that I am trying to buy a property listed at 3640 square feet which should be listed at about 3000 square feet (by my best estimate). I am especially concerned about how this will play out when I try to sell later. Can someone give me an objective third-party view as to whether this is an issue that needs to be cleared up?

Thank you in advance.

The point of measuring the house is to compare the size of the house with the size of the comparable houses. Whether or not house should be measured using ANSI standard or not depends on if the living area of comparable properties are also reported in ANSI. The assessor's record of living area is most widely used for comparables. So if the assessor's in the jurisdiction are using ANSI then the appraisal should use ANSI. It not then it doesn't make sense to calculate living area with ANSI when the living area of the comps is not ANSI.

 

[HomeBuyer6]

The point of measuring the house is to compare the size of the house with the size of the comparable houses. Whether or not house should be measured using ANSI standard or not depends on if the living area of comparable properties are also reported in ANSI. The assessor's record of living area is most widely used for comparables. So if the assessor's in the jurisdiction are using ANSI then the appraisal should use ANSI. It not then it doesn't make sense to calculate living area with ANSI when the living area of the comps is not ANSI.

I did get this answer from someone, and it seems reasonable to me. Apples to apples. Thanks for clarifying this new point that hadn't even been on my radar.

 

[Mejappz]

The point of measuring the house is to compare the size of the house with the size of the comparable houses. Whether or not house should be measured using ANSI standard or not depends on if the living area of comparable properties are also reported in ANSI. The assessor's record of living area is most widely used for comparables. So if the assessor's in the jurisdiction are using ANSI then the appraisal should use ANSI. It not then it doesn't make sense to calculate living area with ANSI when the living area of the comps is not ANSI.

Exactly.

 

[Joe Flacco]

I did get this answer from someone, and it seems reasonable to me. Apples to apples. Thanks for clarifying this new point that hadn't even been on my radar.

I don't use ANSI. I think most assessor's offices measure exterior walls per floor which is how living area calculation is described by Fannie Mae.

 

[Joe Flacco]

It looks like the room labels are misplaced though.


Edit - nevermind he calls it a loft.

 

[Joe Flacco]

That garage should not be included though. So the living area of the blue box sections should be (45x24) + (68x24) = 2,712 SF. Not 68x24x2 = 3,264 SF.

So total living area including the studio is 2,712+624 = 3,336 SF.

 

[Terrel L. Shields]

Or is it to my advantage to let sleeping dogs lie?

Let the loan close first....then you might point out the discrepancy to the lender. Also it might be in your best interest tax wise to show the assessor and compare to the field cards they have. They may have had it that way and you get them to verify it is a smaller SF, they might actually recalculate a lower SF for a lower property tax.

 

[sputnam]

The function of most appraisals is to help the Lender decide whether to make the loan or not. If you were concerned about overpaying (I'm pretty sure no one ever worries about underpaying), you should have had an appraisal done prior to making an offer on the property. The property is what it is. The appraisal doesn't change that.

 

[KONA]

If you have been looking at a lot of available properties in the subject's market area, only you can make the final decision as to the worth of the property to you.