What Is Gross Living Area on an Appraisal?
Discover the essential living space metric appraisers use to assess a home's value and ensure fair property comparisons.
A property appraisal provides a professional estimate of a home’s market value. This process involves a comprehensive evaluation of various property characteristics. Among these characteristics, Gross Living Area (GLA) stands out as a significant factor influencing the final valuation. Understanding how GLA is determined helps homeowners and prospective buyers grasp a key component of property assessment.
Defining Gross Living Area
Gross Living Area (GLA) represents the total finished, heated, and above-grade square footage of a residential property. This standardized measurement is consistently applied by appraisers to ensure uniformity in property valuations. GLA does not encompass all enclosed spaces, focusing instead on areas designed for daily living.
How Gross Living Area is Measured
Appraisers measure GLA by calculating the exterior dimensions of the home at each above-grade level. For properties with multiple stories, the GLA from each above-grade floor is added together to determine the total. Appraisers adhere to professional standards, such as the American National Standards Institute (ANSI) Z765-2021, to ensure consistency and precision in these measurements. This standard requires measurements to be taken and recorded to the nearest inch or tenth of a foot, with final square footage calculations rounded to the nearest whole square foot. Computer-generated floor plans and footprint sketches are used, detailing all dimensions needed for calculation.
Staircases are included in the square footage of the floor from which they descend. For areas with sloping ceilings, at least 50% of the finished area must have a ceiling height of at least 7 feet, and no portion with a ceiling height less than 5 feet can be included in the GLA.
What Counts and What Doesn’t
Specific finished spaces like bedrooms, living rooms, kitchens, bathrooms, and hallways are included. However, certain areas are explicitly excluded from GLA calculations.
Unfinished basements, garages, attics, open porches, decks, and patios are not included in GLA, even if they are attached to the home. Areas below grade, even if finished, are reported as basement area and are not counted towards GLA. Openings to the floor below, such as two-story foyers, are also excluded from GLA calculations. This distinction ensures that only finished, heated, and above-grade living spaces contribute to the official GLA.
The Role of Gross Living Area in Property Valuation
Gross Living Area plays a significant role in the appraisal process as a primary metric for comparing properties. It directly influences the “price per square foot” calculation, which is a common valuation tool in real estate markets. A larger GLA correlates with a higher property value when other factors remain constant. This metric helps appraisers ensure fair and accurate comparisons between similar homes.