https://appraisersblogs.com/solving-the-ansi-measuring-dilemma-a-simple-work-around#comment-34587

FNMA-Only finished above-grade areas can be used in calculating and reporting of above-grade room count and square footage for the gross living area. FNMA-non-gross living areas (basement). Simple stuff Sherlock.

below grade finished square footage is NOT GLA…never has been. FNMA rule since time of dawn. esp. w with “splits”.. which of course is NOT even a style/design to begin with.

Thank you James Scholl.

The link.

https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B4-Underwriting-Property/Chapter-B4-1-Appraisal-Requirements/Section-B4-1-3-Appraisal-Report-Assessment/1032992541/B4-1-3-05-Improvements-Section-of-the-Appraisal-Report-12-15-2021.htm

If the appraiser is unable to adhere to the ANSI standard they must enter “GXX001-” at the beginning of the Additional Features field of the appraisal and provide an explanation of why they were not able to comply. For example, the appraiser is performing an appraisal in a state that requires adherence to a different measuring standard. Such loans may still be eligible for purchase by Fannie Mae.

You are making extra ordinary assumptions about markets you know nothing about.

In Colorado, garden tracks the same as above grade, while actual fully below grade basements track for much less.

You’re right, it’s not rocket science. But you’ll have to actually follow the competency and developmental requirement ethical rules to get your mind around the fact that in Colorado, a garden level is not considered a basement.

No Bags you don’t get it. But nice novel as usual. It is real simple stuff Sherlock…. BELOW grade is lower level/ basement. Bi levels & tri levels- hence 2 or 3 levels ABOVE grade have below grade square footage. That square footage livable or not… is a BASEMENT. Common sense.

Yeah but that below grade sqftge is NEVER worth the same value as the upper above grade levels. It is a basement/lower level no matter how you look at it. period.

The NY state assessors manual mandates splits and raised ranches lower level as square footage if finished in a similar fashion to the upper level. They are referring the level that is partially below grade and partially above. This only applies to these two styles. Agents and home owners get their square footage from the assessors. I will follow the state and opt out of ANSI as necessary. In Fannie Mae’s recent update of FAQ’s they finally acknowledged municipal exceptions. See FAQ #6, I think it was the second paragraph. Not sure why they did not highlight this as it seems a big deal to me.

EXACTLY!!!!!! Well put. My first report was 5 pages and accurate! 1 day with 5 Appraisers and this industry could be faster, less expensive (BTW – we are not currently expensive – Title insurance companies are expensive), and accurate. But why involve us?

You are disregarding the importance of municipal building codes, local standards, the importance of adhering to local rules and regulations, and the importance of secondary verification sources. In the link provided, USPAP references. A lot of appraisers appear to have disregarded these important concepts. The USPAP is supposed to guide our entire practice but this one FNMA ANSI mandate via the jurisdiction clause arguably wipes out half of our guidelines and innate protections.
Again, unlike in these other dysfunctional areas, our area is highly efficient, functional, and cohesive. The realty agents copy assessment data, because MLS gives them easy auto import tools. They describe type and report size in a uniform manner already, because through their own member service groups effort, they have clear guidance for this reporting and recognition of size. And of course the guidance to come up with this PROFESSIONAL MLS PRODUCT, is the municipal building codes in THESE JURISDICTIONS. So now your argument progresses to the licensed assessor does not know design styles and are incorrect. Ignore the absolute fact every single house built in this jurisdiction was (in it’s original state) built to those exacting specifications detailed in the municipal building code guidelines, and the far majority were reported accurately as such. We already have a uniform standard. None of those municipal rules matter anymore? Newsflash, that is the legal standard for the market at hand. To be competent is to know your local rules and regulations. Incompetent practice is to ignore these local market factors. The question remains if FNMA is providing adequate standing to answer the question of superseding local regulations to qualify the jurisdictional exception clause. Remember when you’re up in court or being targeted for complaints and suits, this lack of verification source, failure to adhere to professional standards everyone else is held to without jurisdictional exception, falling back on flimsy ansi disclaimers may not be enough. What on earth makes you guys think the ANSI disclaimers carry more weight than our existing USPAP guidelines?

I am not arguing basement vs. gardens. You arguing apples vs. oranges. Not apples to apples.

Most MLS data is incorrect because realtors dont input correctly and/or know design styles. Much less what is or cares about below & above grade GLA.

RESO? Dont make me laugh!

What I am saying is -bi levels and tri levels have BELOW grade square footage. That is common real estate sense. That is BASEMENT level. Below grade. Get it? Duh.

Hank, you just don’t get it. Let me put forth some more data here.

Whatever you believe to be the proper property definition and description… Is only applicable where you are at, if it is even applicable at all. municipal building codes where you provide professional services. Now we have appraisers outright ignoring municipal building codes and fnma is backing them up. These are violations of the USPAP competency and conduct rules.

You know what RESO? The Real Estate Standards Organization. Keyword standards. And every single MLS in this country is supposed to be RESO compliant sooner than later. Just several years ago the industry at large and a vast majority of major influences and top league corporate participators all unanimously agreed to adopt the RESO standards. They’ve had hundreds of people on those workgroups for years and years. I did not like that but that is what happened. ANSI does not get to over ride them, neither does FNMA because FNMA supports RESO!

Right here where I’m sitting. Operating under the umbrella of a substantially sized MLS member group. Abiding mostly uniform municipal building code and space definition standards in this jurisdiction and many many neighboring counties jurisdictions. That’s not a basement. It’s garden level. Just because garden level and basement share the same line on the 1004 form does not mean they are the same thing. The standards set forth by the municipal authorities in these jurisdictions, are what guided the above definition and recognition of qualified building space, which is adopted and supported by the local real estate professionals. Ever hear of a legal concept called law of the land?

Basements and garden levels are not the same thing. You don’t get to define that. The details are defined by your local municipal authority.
https://appraisersblogs.com/ansi-measuring-standard-required-by-fannie-mae-in-2022/#comment-34180

Same here in Chicago…except I am blowing the deals away.

Just because there is no supply= value.

Just suckers. Like 2005. Repeat.

Lets revisit those same properties in 5+/- years when they are selling for approx .50 cents on the dollar of what they sold for.

I bet on it. Bubble time.

1989. Except now I can do 3 appraisals in the time I did 1. 1/4 the price of overhead too.

Nice color graph.

Except the bi-level & tri-level examples BOTH have below grade/basement living spaces.

Hence bi-level is 2 levels above grade- tri-level is 3 levels above grade.

Both pics utilized show below grade/basement spaces.

Don’t be to impressed. Although one will be a challenge , the other one is just a high dollar PUD.

As it relates to San Diego, my unofficial estimates show that 30 to 40% of all purchases I do have the NO appraisal contingency box checked. It’s either they have the money and don’t care, or have to attempt to out negotiate 5 other offers. So yes, no appraisal contingency purchase contracts are an every other day thing in my world.

Seek the truth.

That’s big league appraisal right there Mr Johnson. Impressive.

For the luxury market they don’t even need to bother with contingency options? Is that a thing?

I fielded a sort of ibuyer quasi buyer in place thing, they guaranteed the entirety of the loan amount in cash regardless of the appraisal result. Apparently still needed the appraisal for compliance to push the GSE loan though.

This industry is changing much to rapidly than even the best of us can keep up with. That’s my opinion at least. And what I just learned today from the Denver area MLS (link above), ANSI does not jive with RESO. The broken record skips on.

I did two inspections today where both were over 2.5 million (contract prices), but yet each had the no appraisal contingency box checked. One will be cut a value of over $500,000, while the other should be cut by $200,000. Both will close escrow (50% LTV), no one will care what I have to say, and each neighborhood will again be pushed up in value. Wake me up when I can stop making $50,000 a month time adjustments.

Seek the truth.

When I started in 1983 an FHA was one page filled out in pencil with one B&W of the front of the subject.