Gross Living Area
The definition for the gross living area published by the Appraisal Institute’s Dictionary of Real Estate 4th Edition is: “The total area of finished, above-grade residential space excluding unheated areas such as porches and balconies; the standard measure for determining the amount of space in residential properties.” In short - the available space left for living or the surface of the building without the walls, that is suitable for year-round use. To better understand the definition of the gross living area, real estate agents must learn from the appraisers what areas are not included in the final figure. They also must learn to compare apples to apples. So, garages, basements and unfinished attic areas do not count as living space, especially if they have earth adjacent to an exterior wall on that level. So, any room below-grade is not included in the gross living area and it is priced differently than the above-grade area. When comparing two properties with the same square footage, the one that has more below-grade square footage will sell for a lower price.
Real estate agents are not required to provide the square footage of the property, but when they do, they should use the ANSI standard or a similar one. Fiberglass measuring tapes are the most common tool used by appraisers. It may stretch, and the measurements might be “almost” accurate, but there is no risk of scratching the walls or the furniture. So is the case with laser measurement tools (Disto) - the appraiser will point the red laser and find the exact distance to the red dot.
The gross living area is an important measurement not only for the future owners but for the mortgage companies as well. Consequently, Fannie Mae has issued some guidelines on measuring the gross living area, too, since appraisals are often undergone before a loan is secured.
Popular Real Estate Terms
In business, one may come across the cash accounting method, also known as cash-basis accounting, during the accounting period. The cash method of accounting is used where payments are ...
Usually a fairly large site zoned and planned for the purpose of industrial development and located outside the main residential area of a city. Industrial parks normally are provided with ...
Brick wall where a space or cavity is left between the inner and outer walls and is usually filled with insulation. ...
The term endorsement can have various meanings depending on the context. In a business transaction, the parties sign a contract about the legal transfer of a negotiable instrument in ...
Highest bid to buy and the lowest offer to sell a parcel of real estate in a particular market at a specified time. ...
Created by the US Congress in 1965, the Department of Housing and Urban Development (HUD) is the agency principally responsible for federal programs relating to housing and urban ...
The addendum definition is an attachment, clause, or section added to an agreement or contract specifying additional terms, conditions, or requirements to the original agreement or ...
Right of a current stockholder to maintain the percentage ownership in a real estate company by purchasing new shares on a proportionate basis before they are issued to the public. It ...
A shallow yet funny definition of a tax specialist is someone who loved math since 1st grade. He or she has an elephant’s memory and is always up to date with the regulations and ...
Have a question or comment?
We're here to help.