Understanding Gross Living Area (GLA) in Appraisals

Gross Living Area (GLA) is a crucial concept in property appraisals, as it directly impacts the value of a property. GLA refers to the total finished, above-grade residential space measured along the building’s outside perimeter. Understanding GLA is essential for buyers, sellers, real estate professionals, and appraisers to ensure accurate property valuations. In this blog post, we’ll delve into what GLA is, how it’s calculated, and why it matters in appraisals.

What is Gross Living Area (GLA)?

Gross Living Area (GLA) represents the total finished area of a home that is above ground. It includes all the habitable spaces that are finished, heated, and directly accessible from other living areas. GLA is typically measured from the exterior walls, capturing the full footprint of the living spaces.

How is GLA Calculated?

GLA is calculated by measuring the exterior dimensions of the home and accounting for all finished, above-grade living areas. Here are the key components included in GLA:

• Finished Rooms: All rooms that are finished, heated, and directly accessible, such as bedrooms, living rooms, kitchens, and bathrooms.
• Closets and Hallways: These spaces are included if they are part of the finished, heated living area.
• Attics and Basements: Only included if they are finished, heated, and above-grade. Unfinished or below-grade areas are not part of the GLA.
• Extensions and Additions: Any extensions or additions that meet the criteria of being finished, heated, and above-grade are included in the GLA.

Internal Resource: Visit our Floorplan Only Appraisals page to see how detailed floorplans can help accurately measure and present GLA in your property listings.

Why GLA Matters in Appraisals

Understanding GLA is crucial for several reasons:

1. Accurate Property Valuation

GLA is a key factor in determining the market value of a property. Larger GLA typically indicates a higher property value, as it represents more livable space. Accurate measurement of GLA ensures that the property is valued correctly, benefiting both buyers and sellers.

Internal Resource: Learn more about the importance of accurate valuations on our The Importance of Accurate Property Valuation page.

2. Comparable Sales Analysis

Appraisers use comparable sales (comps) to determine a property’s value. Accurate GLA measurements allow for a fair comparison between properties. Inconsistent or incorrect GLA measurements can lead to inaccurate appraisals and misleading comparisons.

External Resource: For more information on comparable sales analysis, visit the Appraisal Institute.

3. Legal and Financial Considerations

GLA impacts legal and financial aspects of a property transaction, including mortgage approval, property taxes, and insurance. Lenders require accurate GLA to ensure the property’s value justifies the loan amount. Incorrect GLA can lead to higher or lower property taxes and insurance premiums.

Common Misconceptions About GLA

Understanding what is and isn’t included in GLA helps clear up common misconceptions:

• Finished Basements: Generally not included in GLA unless they are fully above-grade and meet other criteria.
• Garages: Not included in GLA, even if they are finished.
• Porches and Decks: Not included in GLA unless they are fully enclosed, finished, heated, and directly accessible from other living areas.

Internal Resource: For more on common misconceptions in appraisals, visit our Common Misconceptions About Property Appraisals page.

Enhancing Your Property’s GLA

Homeowners looking to increase their property’s value can consider finishing additional areas of their home to enhance GLA. Converting attics, adding extensions, or finishing above-grade basements can contribute to a larger GLA and potentially higher property value.

Conclusion

Gross Living Area (GLA) is a fundamental aspect of property appraisals, directly influencing property value and various legal and financial considerations. Accurate measurement and understanding of GLA are essential for buyers, sellers, and real estate professionals. For precise appraisals and detailed floorplans that accurately reflect your property’s GLA, contact Bellanor Appraisal today.

Contact Us: For more information or to schedule an appraisal, visit our Contact Us page.