What Is Considered Living Space in an Appraisal?
Discover how appraisers define and assess living space, a fundamental element impacting your property's appraised value.
A home appraisal provides an impartial estimate of a property’s market value. Appraisers consider the home’s “living space,” which directly influences its worth. Understanding its definition and measurement is important for homeowners and potential buyers.
Understanding Gross Living Area
The primary term used by appraisers for what is considered living space is “Gross Living Area” (GLA). GLA represents the total finished square footage of a residential property, measured from the exterior walls, that is typically above grade. This metric ensures consistency and comparability across different properties.
For a space to qualify as GLA, it must meet specific criteria: it has to be finished, heated by a conventional system, and directly accessible from other living areas. This clear definition helps distinguish true living space from other areas within a property, preventing confusion with broader terms like “total living area,” which might encompass finished basements or accessory units.
Areas That Are Included
Included spaces are above grade, finished, heated, and accessible. These typically encompass bedrooms, bathrooms, kitchens, living rooms, dining rooms, and family rooms. Finished spaces must have walls, floors, and ceilings constructed with materials like painted drywall and carpeting.
A conventional heating system (e.g., forced air, solar, radiant heat) must serve the area; portable space heaters are excluded. Finished areas must have a ceiling height of at least 7 feet. In rooms with sloped ceilings (e.g., finished attics), at least 50% of the finished square footage must have a ceiling height of 7 feet or more, and no portion with a ceiling height less than 5 feet can be included. Direct accessibility from other finished living spaces (e.g., via a door, heated hallway, or stairway) is required. Staircases are included in the GLA of the floor from which they descend.
Areas That Are Excluded
Certain areas are not counted towards Gross Living Area because they do not meet the criteria of being above grade, finished, or conventionally heated. Common exclusions include unfinished basements, garages (whether attached or detached), carports, open porches, decks, and patios. Even if a basement is finished, it is typically excluded from the GLA calculation if any portion of it is below ground level.
Accessory dwelling units (ADUs) or finished outbuildings are also excluded from GLA because they are not physically contiguous with the main dwelling. Spaces that are only connected to the main house by an unfinished area, such as a finished room above an unfinished garage, will not be included in the GLA. Furthermore, any finished area with a ceiling height less than 5 feet, or where less than 50% of the area has a ceiling height of 7 feet, is typically excluded from the GLA.
Measurement Methods and Valuation Impact
Appraisers employ specific methodologies to measure living space, ensuring consistency and accuracy. For single-family homes, appraisers measure the property from its exterior walls. For condominiums and other attached dwellings, interior measurements are used. Measurements are taken to the nearest inch or tenth of a foot, with the final square footage reported as a whole number.
The American National Standards Institute (ANSI) Z765-2021 provides a standardized method for measuring residential properties, which has been adopted by entities like Fannie Mae and Freddie Mac to promote uniformity. Gross Living Area serves as a primary comparative metric, allowing appraisers to compare the subject property to similar, recently sold homes. A larger GLA correlates with a higher appraised value, as it indicates more usable, finished space. While finished basements add value to a property, they are valued separately and not included in GLA to prevent skewed data, ensuring valuations accurately reflect market reactions.