Fannie Mae has recently updated the Selling Guide!

Appraisers will be required to use the Square Footage-Method for Calculating: ANSI z765-2021 Measuring Standard for measuring, calculating, and reporting gross living area (GLA) and non-GLA areas of subject properties for appraisals requiring interior and exterior inspections with effective dates of April 1, 2022 or later. 

·          Measurements are taken to the nearest inch or tenth of a foot, and the final square footage is reported to the nearest whole square foot.

·          Staircases are included in the GLA of the floor from which they descend.

·          Basement is any space that is partially or completely below grade.

·          The GLA calculation does not include openings to the floor below, e.g., two-story foyers.

·          Finished areas must have a ceiling height of at least 7’. In a room with a sloping ceiling, at least 50% of the finished square footage of the room must have a ceiling height of at least 7’ and no portion of the finished area that has a ceiling height of less than 5’ can be included in the GLA.

·          If a house has a finished area that does not have a ceiling height of 7’ for 50% of the finished area, e.g., some cape cods, in conformance with the ANSI Standard, the appraiser may put this area on a separate line in the Sales Comparison Grid with the appropriate market adjustment. The report will be ANSI-compliant and also acknowledge the contributing value of the non-GLA square footage.

·          In addition, all footprint sketches and floor plans must be computer generated (not hand-drawn), indicate all the dimensions needed to calculate the GLA and other required areas such as garage and basement, and show the calculations to demonstrate how the estimate for gross living area was derived.