I have been asked by several people to describe how appraisers measure square footage. This is an important issue during the residential real estate appraisal process as appraisers use square footage as a significant factor when choosing comparable sales.
There is a guideline-ANSI Z765-2003-used by myself and many appraisers. This guideline, while not a regulation, is a part of the Appraisal Institute curriculum and recognized by many federal agencies. It was created by the American National Standards Institute (ANSI) at the request of the National Association of Home Builders in 1996 and updated in 2003. The standard describes measuring and calculation procedures used to determine the square footage of detached and attached single-family homes. The Appraisal Institute curriculum also states that appraisers should be aware of how measuring square footage is done in their area…and, to make it all more interesting, some of the bigger players in the market place (FHA, VA, Fannie Mae, etc.) have their own standards.
In the ANSI standard, square footage is calculated by measuring the outside perimeter of the structure and includes only finished, habitable, above-grade living space. ANSI defines some important vocabulary in the following ways:
Finished Area
An enclosed area in a house that is suitable for year-round use, embodying walls, floors, and ceilings similar to the rest of the house. If the area is not entirely finished or not connected to the house by a finished area then it is not included in the finished square footage.
The area must have ceiling height of at least 7 feet, except under obstructions where the height may be 6 feet 4 inches. If a room’s ceiling is sloped, at least one-half of the finished square footage in that room must have a vertical ceiling height of at least 7 feet. The floor located under sloping ceilings must have a clearance of at least 5 feet…..no portion of the finished area that has a height of less than 5 feet may be included in finished square footage.
Grade
The ground level at the perimeter of the exterior finished surface of the house.
Above grade finished area is the sum of finished areas on levels that are entirely above grade. Below grade finished area is the sum of finished areas on levels that are wholly or partly below grade.
Below grade areas can add greatly to the value of a house and are included when determining value.
Areas included in square footage
-Areas of the house that are above grade and entirely finished
-Area of stair treads and the landings proceeding to the floor below is included in the finished area of the floor from which the stairs descend
Area not included in square footage
-Any below-grade areas, even if only one part of the area is below grade
-Openings to the floor below (i.e. for two-story foyers, great rooms, etc. the second floor open space is not counted)
-Finished areas not connected by other finished areas (hallways) which includes guest houses, pool houses, accessory apartments or any heated, finished space above outbuildings.
Some important notes:
Appraisers do not make adjustments for a difference of 100 square feet or less.
Property cards are often not updated and are frequently inaccurate. Look at the sketch on the card and make sure it matches the house.
Resource
ANSI Z765-2003
http://user153786.websitewizard.com/files/unprotected/ANSI_GLA_standard_2003.pdf
when a house has 100% full-brick siding, the brick extends beyond the concrete “slab” or pored foundation. Where does the appraiser place his tape to measure the home? Along the ground line (if level) or so many feet above the ground line, thus over the brick?
Marie,
Hold your tape on the edge of the brick and measure brick to brick. You can deduct 6″ from your overall measurement. An appraiser’s sketch is only a guide. You are not an engineer or architect and your measurements will not be as precise as a set of blueprints. I hope this helps.