Appraisers’ GLA vs Assessors’ GLA
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GLA in your appraisal reports being questioned
today (4/30/15), Freddie Mac released a document showing Warning and Fatal codes that will trigger if certain items are found in your reports sent to Freddie Mac through the Uniform Collateral Data Portal (UCDP), as of June 30, 2015.
In 25 pages of codes, only 4 are ‘fatal’ and those are for items you should not be overlooking. See the PDF below and take a moment to look over the document.
The very first ‘warning’ code is this one, which has two variations:
|FRE1001||The gross living area for the subject property ([GLA] sf) varies by more than [X]% and [Y] sf from public records ([GLA] sf). Please confirm the reported gross living area for the subject property is accurate and adequately supported.|
|The gross living area for the subject property ([GLA] sf) varies by more than [X]% from public records ([GLA] sf). Please confirm the reported gross living area for the subject property is accurate and adequately supported.|
In our profession, industry, avocation, or whatever you choose to call it, the incorrect assumption by many people is that ‘public records’ are always believed to be 100% correct. They are not in many cases. Assessor appraisers often don’t actually measure homes! I know, blasphemy. But it’s true based on the class I gave to local assessor appraisers about how to measure dwellings who told me exactly that.
In reports I review, I seldom see statements saying the appraiser actually MEASURED the dwelling. So if you don’t tell people you did, why should they believe your GLA number more than PUBLIC RECORDS which may be inaccurate?
So put a statement in EVERY report that you did measure. Say something like
“Appraiser’s measurement may vary from that found in other sources, and is deemed more reliable for this report.” And when your measurement is significantly different from PUBLIC RECORDS, tell the reader that your measurement is X% larger or smaller “due to assessor measurement error.”
I’m serious about that statement. I never get questioned about the GLA I report. My comment is at the very top of page 3, in that big blank comment section many appraisers don’t use.