Marketing the square footage of your homes? Be sure you're doing it the right way with the American National Standards Institute-approved standard.
There are many different regional and local practices for calculating floor area. With the introduction of Square Footage - Method for Calculating ANSI Z765 in 1996 came an authoritative definition and methodology to measure and calculate “finished area.” The square footage standard is a consensus standard that defines criteria for calculating “finished area” in one- and two-family houses, which serves multiple purposes.
The value of finished area as represented by dollars-per-square-feet is the most contested topic that comes across my desk. In particular, there is typically a wide gap between the assumed value of finished below-grade area to that of above-grade area. And, the cost to construct and finish a below grade area may be equivalent or even more for the above grade area. For a broader discussion on the principals and practices used by appraisers, the Appraisal Institute’s text Appraising Residential Properties, Fourth Edition, 2007, provides a comprehensive treatise on the various valuation methods to assess residential properties. That text uses the ANSI square footage standard as a primary reference.
The basic principles in the square footage standard are straightforward.
The Home Innovation Research Labs is the secretariat for the Square Footage - Method for Calculating ANSI Z765 standard, and earlier this year administered the standard's most recent consensus-based review and update process. Printed and electronic versions of the standard are available through our bookstore.
What are the biggest square footage issues you encounter?***