What is above grade living area

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What Does Above Grade Mean? Real Estate Agent Explains Above Grade The term above grade is used to give more information about where things are located in a home. Sponsored Links. Join the discussion 2 Comments. February 7, at pm. Alan F Macdonald says:. February 8, at am. Leave a Reply Cancel Reply. Thus, the contributory value can differ substantially from that of main-level living areas. In order to deal with this situation more effectively, this guideline states that attic areas finished or unfinished are not to be included in gross living area calculations.

Basements and Below Grade Finished Areas. How a real estate agent enters square footage using its local or regional Multiple Listing Service MLS is usually defined by that MLS through bylaws or is entered by local custom of the market.

In the appraisal report, the appraiser is using defined industry standardization methods and is not based on how a real estate agent reports a property for marketing purposes. It is important to understand that one reason for the guidelines on appraisals is for consistent reporting of the square footage of the property. ANSI simply states: The be l ow-grade finished square footage of a house is the sum of finished areas on levels that are wholly or partly below grade. The Fannie Mae Selling Guide is very clear on what is a basement or below grade stating: A level is considered below-grade if any portion of it is below-grade—regardless of the quality of its finish or the window area of any room.

A walk-out basement with finished rooms would not be included in the above-grade room count. Fannie Mae also specifically recognizes that all basements are not created equal and states: Rooms that are not included in the above-grade room count may add substantially to the value of a property—particularly when the quality of the finish is high. Like basement square footage, the finished rooms in a basement are identified separately from the above grade room count.

In general, a room is a kitchen, a bedroom, a living room, a dining room, a family room, an office, a study or a den. Rooms do not have to be divided by walls as long as there is space for the intended function.

In many markets, an open concept design or floor plan has been used, which typically encompasses a kitchen, dining room and living room. Bathrooms, breakfast nooks, storage rooms, mudrooms, laundry rooms, foyers and closets are not usually considered in the total room counts.

If you ask a group of real estate industry professionals appraisers, real estate agents or lenders what is considered a bedroom or what is the difference between a den and a bedroom, it would not be uncommon to get differing opinions. Fannie Mae Selling Guide does not specifically address a bedroom closet. Local codes may specifically define a bedroom.

If an enclosed patio solid walls covers the bedroom window, it is possible that the bedroom won't qualify as a habitable bedroom. Security bars are acceptable if they comply with local fire codes. Occupants of a bedroom must be able to get outside the home if there is a fire.

HUD further elaborates specifically on basement bedrooms that: As a rule basement space does not count as habitable space. If the bedroom does not have proper light and ventilation, the room can not be included in the gross living area.

The following requirements apply to the valuation of below-grade rooms:. Generally, a bedroom is considered a room that a conventional bed will fit in with either a closet or space for a closet or wardrobe cabinet and also has a window which provides an emergency exit, natural light and ventilation. The appraiser must consider the intended use or function of the room.

A room off the foyer with a closet may technically be able to be counted as a bedroom, however, if the intended to be used as a den, then it should be counted as a den in the appraisal report. B edrooms should have direct access to a hallway, living room or other common area. You should not have to walk through one bedroom to get to another.

Quite simply, a bedroom that is not conforming to the recognized standards, including proper window egress, of a bedroom should not be called a bedroom. Essentially, the UAD guidelines mandate the way many individual fields in the appraisal form reports are entered.