FNMA Selling Guide, 8/29/2017, Page 552

FNMA defines exceptions to above-grade/below-grade rules


FNMA Rules Regarding GLA

For consistency in the sales comparison analysis, the appraiser should compare above-grade areas to above-grade areas and below-grade areas to below-grade areas. The appraiser may need to deviate from this approach if the style of the subject property or any of the comparables [sic] does not lend itself to such comparisons. For example, a property built into the side of a hill where the lower level is significantly out of ground, the interior finish is equal throughout the house, and the flow and function of the layout is accepted by the local market, may require the gross living area to include both levels. However, in such instances, the appraiser must be consistent throughout the appraisal in his or her analysis and explain the reason for the deviation, clearly describing the comparisons that were made.  (FNMA Selling Guide, 8/29/2017, page 552)


Modified:  9/18/2018