12/31/2023 0 Comments Two stories height![]() ![]() Only finished above-grade areas can be used in calculating and reporting of above-grade room count and square footage for the gross living area.The following must be observed when calculating and reporting above-grade room count and square footage for the gross living area: ANSI, however, only notes a distinction between above-grade and below-grade areas.įannie Mae Selling Guide October 2013 (B4-1.4-14 Appraisal Report Review Layout, Floor Plans and Gross Building and Living Areas) states: the appraiser must use the exterior building dimensions per floor to calculate the above-grade gross living area of a property. To varying degrees, the different guidelines describe the modification of areas to remove unfinished or unheated sections of the interior.įannie Mae, HUD/FHA and ERC guidelines are also similar in not counting basements, regardless of finish, in Gross Living Area. Any limitations such as the inability to measure a side of a house due to not having sufficient access due to obstructions (trees, shrubbery, etc.)įannie Mae, HUD/FHA, ERC and ANSI all state that dimensions are based on an exterior measurement of each floor of the home.The level of rounding (to the inch, to the tenth of a foot, to the half foot, to the nearest foot, etc.).The type of measuring device (metal or fiberglass tape measure, digital laser or ultrasonic unit, measuring wheel, etc.).The method(s) employed in developing the square footage of the home.While usually not specifically required, to understand how the square footage is calculated, the appraiser should comment in the appraisal report on: Fannie Mae Selling Guide October 2013 recognizes their guideline does not fit all assignments when it notes: Appraisers may deviate from this approach (being Appropriate Above-Grade and Below-Grade Comparisons) if the style of the subject property or any of the comparables does not lend itself to such comparisons. ![]() Understand that the guidelines are meant to be applicable in all states and may be appropriate for the vast majority of appraisal assignments, yet, due the diversity of housing throughout the country, one guideline simply can’t account for every situation imaginable. The generally recognized guidelines may be excellent in communicating the square footage of a home in a flat to rolling subdivision neighborhood, while standardized guidelines may simply not be effective in an area of multi-level homes built into the side of a mountain. Ultimately, as with other aspects of a valuation assignment, the appraiser and the lender should determine the level of detail necessary in calculating the homes square footage. Many of the guidelines are similar however, some guidelines do not specifically address some aspects of measuring, while others have very detailed guidance. To varying degrees, these guidelines define Gross Living Area, Basements/Below Grade Floor Areas, Attics/Lofts/Low Ceilings, and Detached Buildings. There are generally recognized guidelines (including the Fannie Mae Selling Guide, FHA/HUD Handbook 4150.2, Employee Relocation Council (ERC) Appraisal Guide, American National Standards Institute (ANSI) Z765-2003, etc.). As nearly all appraisers soon realize after entering the business, this means measuring a home and counting rooms can be as clear as mud. It is important to understand that when it comes to measuring a property, there is no one size fits all method employed by every appraiser, real estate agent, lender or governmental unit. Can’t you just grab a tape measure, pencil and paper then measure all the sides of the house and calculate the size? If it is a box 2 story home, then you simply multiple times 2 and that’s your total square footage, right? Understanding the measurements, calculations and room counts of your home on the appraisalĪt first glance, the concept of measuring a home, counting the rooms and reporting the results in the appraisal report appears to be fairly simple and straightforward. ![]()
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