Are you aware that appraisers are now required to use the Square Footage-Method for Calculating: ANSI® Z765-2021 (American National Standards Institute®) 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 on loans sold to Fannie Mae. Historically, Fannie Mae’s Selling Guide has not required the use of a specific measurement standard.

 

This policy update will standardize the method used to measure, calculate, and report GLA and non-GLA areas of subject properties. 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. 

 

Why the change? Valuations of residential property correlate strongly with GLA, yet to date there is little consistency in how appraisers determine it. Adoption of the ANSI standard for measuring, calculating, and reporting square footage:

• Creates alignment across market participants.

• Provides a professional and defensible method for the appraiser.

• Allows transparent and repeatable results for the user of the appraisal report.