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c. Gross Living Area (04/18/2023)
i. Definition
Gross Living Area (GLA) refers to the total area of finished, above-grade residential space calculated by measuring the outside perimeter of the Structure. It includes only finished, habitable, above-grade living space.
ii. Required Analysis and Reporting
The Appraiser must:
• identify noncontiguous living area and analyze its effect on functional utility;
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3. Acceptable Reporting Forms and Protocols (04/10/2025)
• ensure that finished basements and unfinished attic areas are not included in the total GLA; and
• use the same measurement techniques for the subject and comparable sales, and report the building dimensions in a consistent manner.
When any part of a finished level is below grade, the Appraiser must report all of that level as below-grade finished area, and report that space on a different line in the appraisal report, unless the market considers it to be Partially Below-Grade Habitable Space.
In the case of nonstandard Properties and floor plans, the Appraiser must observe, analyze, and report the market expectations and reactions to the unique Property.
The Appraiser may apply a supplemental measurement standard if it does not conflict with these requirements and the Appraiser discloses the use of the standard.
iii. Additions and Converted Space
The Appraiser must treat room additions and garage conversions as part of the GLA of the dwelling, provided that the addition or conversion space:
• is accessible from the interior of the main dwelling in a functional manner;
• has a permanent and sufficient heat source; and
• was built in keeping with the design, appeal, and quality of construction of the main dwelling.
Room additions and garage conversions that do not meet the criteria listed above are to be addressed as a separate line item in the Sales Comparison Approach (SCA) Grid, not in the GLA. The Appraiser must address the impact of inferior quality garage conversions and room additions on marketability as well as Contributory Value, if any.
The Appraiser must analyze and report differences in functional utility when selecting comparable properties of similar total GLA that do not include converted living space. If the Appraiser chooses to include converted living spaces as GLA, the Appraiser must include an explanation detailing the composition of the GLA reported for the comparable sales, functional utility of the subject and comparable properties, and market reaction.
Alternatively, the Appraiser may consider and analyze converted living spaces on a separate line within the SCA Grid, including the functional utility line to demonstrate market reaction.
The Appraiser must not add an ADU or secondary living area to the GLA.
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3. Acceptable Reporting Forms and Protocols (04/10/2025)
iv. Partially Below-Grade Habitable Space
(A) Definition
Partially Below-Grade Habitable Space refers to living area constructed partially below grade, but has the full utility of GLA.
(B) Required Analysis and Reporting
The Appraiser must report the design and measurements of the subject, the market acceptance or preference, how the levels and areas of the dwelling are being calculated and compared, and the effect that this has on the analysis.
Regardless of the description of the rooms, bedrooms or baths as above grade or below grade, the Appraiser must analyze all components of the subject Property in the valuation process.
v. Bedrooms
The Appraiser must not identify a room as a bedroom that cannot accommodate ingress or egress in the event of an emergency, regardless of location above or below grade.