Gross Living Area
Definition of "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
Written enumeration of the desired selling prices associated with homes or office buildings for sale. The prospective buyer can then determine if the properties for sale are within his ...
Space reserved for specified vehicles. For example, an office building may have space available for automobiles of tenants, clients of tenants, and other visitors. Parking facilities may be ...
Same as term right of first refusal: Right of an individual to be offered something before it is offered to others. For example, a tenant whose apartment is going to be converted to a ...
Vertical window built through a sloping roof having its own gable and forming its own roofline. ...
Extended area of land commonly held for subdividing and development into residential units. ...
Use of a parcel of land that will produce the greatest current value. ...
Two or more parties agree to something. An example is when the two parties to a contract mutually agree to make certain revisions to it. ...
When the return on borrowed funds exceed the after-tax interest cost. It is profitably using other people's money. ...
Outside wall of a structure that is exposed to the weather. An exterior wall can also be a load bearing wall ...
Have a question or comment?
We're here to help.