ANSI Disclosure Examples
What about Condos?
The appraiser has used Fannie Mae’s policy of using interior perimeter measurements for the subject property. ANSI classifies Condominium as an ownership type and does not offer any guidance for the measurement of Condos. ANSI also states that a single-family house has its own roof and foundation, which a Condo does not and is owned by an association. State law offers no unit boundary guidelines, although some states vary, and the best guidance for the measurement of Condos is provided by FNMA Guidelines. Regardless of attached or detached property type, the measurement of condominiums is provided by the “paint to paint” interior wall method.
Traditional Measurements
There are different ideas on the best way to address this issue. ANSI contains three pages of their main “rules.” Page three is titled “Statement of Finished Square Footage.” In my opinion, I believe that ANSI expects you to disclose the fact that you adhered to the ANSI standard. Can you imagine a lender, after hearing all the talk of the ANSI mandate, not searching each appraisal for a disclosure that the appraiser followed the ANSI standard? It just has to be there, so the question is; what has to be there?
This statement will be included within my appraisal reports for full inspection assignments. You should consult with a local professional or contact the National Association of Home Builders to make sure this statement is suitable in your market.
The Bottom Line:
The enclosed sketch is based on ANSI Z765-2021. The finished square footage measurements and calculations contained within the sketch file were created by onsite measurements. The measurements are reported to the nearest tenth of a foot (or nearest inch) and rounded to the nearest whole square foot.
If there is below-grade space:
ANSI requires a clear and separate distinction of above-grade and below-grade areas.
My personal reports will also contain a disclosure of what the GLA is in the report and the square footage total listed in tax records.
Can you provide a basic disclosure addendum example?
The following statements are provided for illustration only.
- Dwelling sketch provided to assist the reader in visualizing the property and is based on an on-site measurement, and based on the ANSI measurement standard. Measurements are taken to the nearest tenth of a foot (or inch) and rounded to the nearest whole square foot. The property includes a 810 below-grade finished square footage area and a 410 square footage below-grade unfinished area.
- Dwelling sketch provided to assist the reader in visualizing the property and is based on an on-site measurement, and based on the ANSI measurement standard. Measurements are taken to the nearest tenth of a foot (or inch) and rounded to the nearest whole square foot. The subject’s square footage total reported in the local tax records is ________ sqft. Onsite measurements are most always more accurate than public records, which are created through exterior-only calculations. All measurements are for above-grade spaces.
- Structure is measured by onsite calculations and based on the ANSI 2021 measurement standard. Measurements are taken to the nearest tenth of a foot (or inch) and rounded to the nearest whole square foot. All measurements are for above-grade spaces. Non-GLA areas include a 180 sqft front covered porch and a 220 sqft covered rear porch. There is a detached garage measuring 20×24 or 480 sqft. See the attached photos and sketch page for dwelling dimensions and details.
- The home’s finished square footage calculations were made based on estimated dimensions from the plan dimensions and may vary from the finished square footage of the completed dwelling. Dimensions may include unfinished areas, or openings in floors not associated with stairs or the opening in the floors that exceed the area of the staircase.
Can you provide a basic addendum for the difference between the subject and the comparable sales?
The following statements are provided for illustration only.
- The subject property has been measured according to the ANSI Z765-2021 measurement standard. The sqft details for all comparable sales are taken from MLS records, tax records, or previous appraisal files and the best known information is utilized. There are often inaccuracies in the measurements in the MLS and tax records, but these sources are considered as the best available. No square footage data is guaranteed.
- The measurement for the subject dwelling is derived using the ANSI measurement standard Z765-2021. Any variations between the appraiser’s measurements and the tax assessor’s measurements are due to the fact that the appraiser has made a personal inspection and measurement of the subject property. Tax records are based on interior-only inspections and cannot verify any openings in the dwelling. A copy of the ANSI standard is available upon request.
- The finished square footage or gross living area was derived from actual onsite measurements taken by the appraiser as of the effective date of this report and may not be similar to the finished living area as reported on tax records. The gross living area reported on the tax record may be derived from builder’s plans or a field estimate taken from exterior-only measurements. The enclosed sketch is for illustration purposes only and is based on the ANSI Z765-2021 Standard. This drawing is not intended as a detailed floor plan of the home, but created to determine the total finished living area or total finished square footage.
You can fulfil all the disclosure requirements of ANSI within your sketch software.
ANSI requires you to:
Show the dwelling dimensions. Most sketching software allows you to add pages to your report that show the exterior dimensions. While the dimensions are visible from the main sketch page, it’s best to have those numbers across the outside of the sketch for consistency of the readers of your reports. You can add a page that shows all the calculations used in determining the total finished square footage. Just by adding that extra page (which many appraisers already include), that fulfils that part of the rules of disclosure.
In Alamode Software you can hit Control F10 and that will move all your dimensions to exterior placement.
If you physically measure the subject property you are required to add a disclosure about “rounding.” If you will add this line to your “Quicklist” you can simply add this line at the bottom left corner (for consistency for your readers) and by adding that line and the additional page with the dimensions you have met the requirements of ANSI disclosures.
That would change if you had a home with below-grade space or if you are making any assumptions in your report, such as new construction per plans, or an exterior only inspection, or anything that precludes you from personally measuring the structure.
For those who want to go the extra mile:
The enclosed sketch is for illustration purposes only. This drawing is not intended as a detailed floor plan of your home, but created to determine the total finished living area. This home was measured according to the Square Footage – Method for Calculating: ANSI® Z765-2021. The ANSI® Standard is the leading universally recognized “standard” for calculating residential square footage. It is mandated by Fannie Mae and recognized by HUD, Freddie Mac, VA, FHA, and approved for use in all mortgage lending transactions.
The subject home has 2,480 sqft (GLA, finished above grade) on two stories. 1,460 sqft on the first floor and 1,020 sqft on the second floor. Non-GLA areas include: A 90 sqft front porch and a 120 sqft rear covered porch, a 140 sqft open deck, and a detached garage of 640 sqft with an unfinished upper storage space. See the attached photos and sketch page for details. All measurements are taken to the nearest inch or tenth of a foot and rounded to the nearest whole square foot.
There is often a difference between the finished square footage appraisers calculate and the total square footage counts tax records provide under a wide variety of names. In most cases, assessors are not allowed to enter dwellings and the square footage numbers they provide are estimates for tax purposes only. They are generally not as accurate as the actual on-site measurements. The method used in public records must estimate upper and lower levels, and finished and unfinished areas, or be taken from builder’s plans which can often be changed during construction, or different due to differing calculation methods, or numerous other issues that may cause the plans to be different from the actual onsite structure. The exterior-only measurement method often provides wide variations in square footage totals. The square footage details in public records (and online valuations) are frequently in error and can cause over and under home valuations, based on a price-per-square-foot formula calculated by using inaccurate square footage details.
The finished square footage calculations contained herein were made based on a physical observation of the subject property by the signing appraiser. Finished square footage is reported as above and below “grade.” A home’s total square footage is listed as Gross Living Area or “GLA” and is reported as the above grade square footage total only, as required by the federally mandated appraisal URAR form (this also includes Room Counts, which must be separated between above and below grade).
This reporting method does not impact a home’s value and is a method of comparison only, created to allow for the fair comparison of similar properties. ANSI® states that: Failure to provide the declarations listed below–where applicable–voids any claim of adherence to this standard. The finished square footage of a house is to be reported to the nearest whole square foot for above-grade finished square footage and for below-grade finished square footage. No statement of a house’s finished square footage can be made without the clear and separate distinction of above-grade areas and below-grade areas. Also per ANSI: “Any calculation and statement of unfinished square footage must distinguish between above-grade areas and below-grade areas.”
Finished areas above garages (or other finished areas) may be included in the finished square footage count or GLA, but only if they are connected to the house by continuous finished areas such as hallways or staircases. Detached finished spaces are not included within the GLA total and are reported as Detached Finished Building Area or Detached Finished Gross Building Area or (GBA). These methods were developed by national appraisal organizations and the Federal Government to allow for the most accurate, fair, or “apples to apples” comparisons of residential properties.
The ANSI® method for calculating square footage requires measurements to be taken to the nearest inch or tenth of a foot. Due to assorted building materials, terrain, landscaping, etc., some measurements may be estimated from exterior dimensions, would be disclosed separately, and cannot be guaranteed. The dimensions used to calculate the finished living area are included within the sketch so that they may be duplicated by another professional, remeasuring each exterior wall and verifying its dimensions, and that the total square footage count could be recreated by following the same measurement standard and rounding principles.
In areas of a dwelling that are not specifically covered within the ANSI® standard (i.e. enclosed porches, areas with mini-splits or unconventional HVAC systems, finished rooms within garages, certain attic spaces, etc. measurements are based on a combination of local customs, FNMA Guidelines, the AMS®, and appraisal experience. All measurements are based on industry accepted guidelines and procedures and are provided as an estimate of total living area. Due to variations in construction methods and practices, all dwellings may not “Square,” and measurements may be rounded when necessary to balance the dwelling, therefore all measurements cannot be absolutely guaranteed due to variations in stick-built dwellings. The dwelling sketch is believed to be the best representation of the on-site structure based on industry accepted methodologies.
The enclosed drawing is provided as an illustration only and the data is not guaranteed. Due to differing construction methods and materials, local measurement and building customs, variations in measurement guidelines, this information is deemed to be accurate but cannot be guaranteed. Appraisers must use the square footage records from the local MLS, tax records, previous appraisals, or other appraisal resources for comparable sales. Information and resources are the best available.
Per ANSI®
Above- and Below-Grade Finished Areas:
The above-grade finished square footage of a house is the sum of finished areas on levels that are entirely above grade. The below-grade finished square footage of a house is the sum of finished areas on levels that are wholly or partly below grade.
Ceiling Height Requirements:
To be included in the finished square footage calculations, finished areas must have a ceiling height of at least 7 feet except under beams, ducts, and other obstructions where the height may be 6 feet 4 inches; under stairs where there is no specified height requirement; or where the ceiling is sloped. If a room’s ceiling is sloped, at least one-half of the finished square footage in that room must have a vertical ceiling height of at least 7 feet. No portion of the finished area that has a height of less than 5 feet may be included in finished square footage or GLA.
The above statements are the personal opinions of Hamp Thomas and are for illustration only. Please consult an attorney or other expert in your area to determine your disclosure statement
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