2. Reducing Appraiser Liability: Using the ANSI Residential Measuring Standards
Presenter
Byron Miller, SRA, RAA, MSSE
Principal Appraiser
BM Appraisals

3. Presenter Biography Byron Miller, SRA, RAA, MSSE
- MN Certified Residential Appraiser
- WI Certified Residential Appraiser
- SRA Designated Member of the Appraisal Institute
- RAA Designated Member of the National Association Realtors
- BOD North Star Chapter of the Appraisal Institute
- BOD Twin Cities Financial & Estate Planning Council (TCFEPC)
- Instructor
- Coursework Developer
- Author
- Software Developer - -

4. Seminar Objectives Discuss SFR Measuring Standard
Discuss MFR Measuring Standard

5. Single-Family Residential Measurement Standard
ANSI Z
Single-Family Residential Measurement Standard

6. Z765-2013 Overview Motivation for Standard
ID Five Causes of Measuring Errors
Present Major Components of Standard
Examples

7. Quiz Calculate first floor area of home First floor area
Base Area: First Floor
40’ X 26’
Bump-out: floor-ceiling height 6’ 8”
20’ X 4’
Fireplace Bump-out:
8’ X 4’
Stair Opeining
6’ X 8’

8. Quiz Floor Plan
Quiz Floor Plan

9. Quiz Floor Plan Which is the correct area? 1040 SF 1112 SF 1080 SF

10. Quiz Answers 1040 SF for gross area 48 SF for Void Area
40’ X 26’ = 1040 SF
48 SF for Void Area
6’ X 8’ = 48 SF
992 SF for total finished area
1040 SF – 48 SF = 992 SF

11. Organization Background
ANSI: American National Standards Institute
Oversees Standards Development
Non-Profit
Established 1918
125,000+ Member Companies

12. Organization Background
NAHB: National Association of Home Builders
Enhance Housing & Building Industries
Provide Affordable & Safe Housing
Established 1942
140,000+ Member Companies

13. Motivation
Why do we need a measuring standard?

14. Motivation
What is it?
Voluntary Guidelines for describing, calculating, measuring, and reporting of area for Single Family Residential (SFR) attached, detached & semi-detached (Duplex) homes.

15. Motivation
In the beginning…

16. Motivation There was…, Gross Living Area (GLA)
“Total area of finished, above-grade residential space; calculated by measuring the outside perimeter of the structure and includes only finished, habitable, above-grade living space. (Finished basements and attic areas are not generally included in total gross living area. Local practices, however, may differ).”
The Dictionary of Real Estate Appraisal, 5th ed.

17. Motivation Why do we need it? Inconsistent Measuring Methods
Exterior area Measuring
Interior area Measuring
Mixture of both

18. Motivation Why do we need it? Different Measurers & Uses Appraiser
Assessor
Realtor

19. Motivation
Appraiser

20. Motivation
Assessor

21. Motivation
Realtor

22. Motivation Why do we need it? Differing SF Measuring Methods Cause
Confusion
Inconsistent Results
Conflict

23. Motivation
One of the most common reasons appraisers & realtors get sued is over measuring disagreements

24. Consistent measuring methods reduces liability
Motivation
Consistent measuring methods reduces liability

25. Motivation History Behind Z765 Standard
Building Owners & Managers Association (BOMA)
1915 develop commercial building measurement standard
Current Version: Z (Commercial buildings)
NAHB
1994 NAHB research begins work on residential standard
First Version: Z
Previous Version: Z
New Version: Z – Summer 2013

26. Motivation Z765 Participants (partial list) Appraisal Foundation
American Institute of Architects
Consumers Union
Employee Relocation Council (ERC)
Fannie Mae
Freddie Mac
HUD
International Code Council
Manufacturer Housing Institute
National Association of Home Builders (NAHB)
National Association of Realtors (NAR)
Veterans Administration

27. Motivation States that use ANSI Z765 (partial list) Alabama Arkansas
Colorado
Kentucky
Louisiana
North Carolina

28. Five Deadly Measurement Sins

29. Five Deadly Measurement Sins
Five Causes of Measurement Errors
Measuring Issues
Missing Gross Living Area (GLA)
Counting Non-GLA
Complex Floor Plans
Inaccessible Measurements

30. Five Deadly Measurement Sins
Five Causes of Measurement Errors
Measuring Issues
Equipment Failure
Measuring Wheels
Fiberglass Tape Measurers
Laser Measurers

31. Five Deadly Measurement Sins
Five Causes of Measurement Errors
Equipment Failure Example
Elongated Wheel

32. Five Deadly Measurement Sins
Five Causes of Measurement Errors
Measuring Issues
Equipment Failure
Measuring Wheels
Fiberglass Tape Measurers
Laser Measurers
Squaring Error

33. Five Deadly Measurement Sins
Five Causes of Measurement Errors
Squaring Example #1
Easy!

34. Five Deadly Measurement Sins
Five Causes of Measurement Errors
Squaring Example #2
Easy, Right?

35. Five Deadly Measurement Sins
Five Causes of Measurement Errors
Missing Gross Living Area (GLA)
Four Season Porches
Bonus Rooms
Excluding Stairs
Hallways (extending to unfinished spaces)
Mother-in-law Units (attached through finished hall)

36. Five Deadly Measurement Sins
Five Causes of Measurement Errors
Counting Non-GLA
Three Season Porches
Decks
Patios
Non-attached Auxiliary Buildings
ie: Mother-in-law units above a detached garage
Garages
Below-grade
Including Stairs (double dipping)

37. Five Deadly Measurement Sins
Five Causes of Measurement Errors
Complex Floor Plans
Upper level footprint doesn’t match main footprint
Interior Cavities/Dead-space in walls
Difficult Geometries
Multi-Level Homes
Completely Above-grade
Partially Above-grade

38. Five Deadly Measurement Sins
Five Causes of Measurement Errors
Inaccessible Measurements
Upper Stories: two and above
Condos
Attached Townhomes
Not accounting for wall thickness

39. Z Components
Components of the ANSI Z765 Standard

40. Z765-2013 Components Components of the ANSI Z765 Standard Definitions
Area Measurement & Calculation
Area Reporting

41. Z765-2013 Components Components of the ANSI Z765 Standard Definitions
Attached Single-Family Residential (SFR) Home
A house that has its own roof & foundation, and is separated by dividing walls that extend from the roof to the foundation. The house does not share utility services with other attached houses.

42. Z765-2013 Components Components of the ANSI Z765 Standard Definitions
Detached Single-Family Residential (SFR) Home
A house with open space on all sides

43. Z765-2013 Components Components of the ANSI Z765 Standard Definitions
Habitable Space
A space in a building for living, sleeping, eating or cooking. Bathrooms, toilet rooms, closets, halls, storage or utility spaces and similar areas are NOT considered habitable spaces.
International Building Code (IBC)

44. Z765-2013 Components Components of the ANSI Z765 Standard Definitions
Habitable Space
A space that is usable year-round.
Interpreted definition ANSI-Z765

45. Z765-2013 Components Components of the ANSI Z765 Standard Definitions
Finished Area
An enclosed area in a house that is suitable for year-round use that is consistent with the rest of the house

46. Z765-2013 Components Components of the ANSI Z765 Standard Definitions
Unfinished Area
Sections of the house that do not meet the criteria of finished area

47. Z765-2013 Components Components of the ANSI Z765 Standard Definitions
Grade
The ground level at the perimeter of the exterior finished surface of a house.

48. Z765-2013 Components Components of the ANSI Z765 Standard Definitions
Level
Areas of the house that are vertically within two feet of the same horizontal plane.

49. Z765-2013 Components Components of the ANSI Z765 Standard Definitions
Square Footage (SF)
Area of length X width. Units in square meters using Metric (Standard International) measurements, or square feet using English measurements.

50. Z765-2013 Components Components of the ANSI Z765 Standard Definitions
Finished SF
Same as finished area, although not a Z765 definition.

51. Z765-2013 Components Components of the ANSI Z765 Standard Definitions
Unfinished SF
Same as unfinished area, although not a Z765 definition.

52. Z765-2013 Components Components of the ANSI Z765 Standard Definitions
FNMA definitions. Not defined in Z765 standard but presented here for reference.
Gross Living Area (GLA)
Below-Grade SF (BSF)

53. Z765-2013 Components Components of the ANSI Z765 Standard
Gross Living Area (GLA)
For units in condominium or cooperative projects, use interior perimeter unit dimensions to calculate the gross living area. In all other instances, use the exterior building dimensions per floor to calculate the above-grade gross living area of a property. Only finished above-grade areas should be used— garages and basements (including those that are partially above-grade) should not be included.
FNMA Guidelines: XI, (11/01/2005)

54. Z765-2013 Components Components of the ANSI Z765 Standard
Below-grade SF
Consider a level to be below-grade if any portion of it is below-grade— regardless of the quality of its “finish” or the window area of any room. Therefore, a walk-out basement with finished rooms would not be included in the above-grade room count.
FNMA Guidelines: XI, (11/01/2005)

55. Z765-2013 Components Components of the ANSI Z765 Standard Definitions
Garage
A structure intended for the storage of automobiles and other vehicles.

56. Z765-2013 Components Components of the ANSI Z765 Standard
Measurement & Calculation of Area
Units of Measurement
Attached SFR Finished Area
Detached SFR Finished Area
Above- & Below-Grade Area Distinctions
Above- & Below-Grade Finished Area
Openings to Floor Below Area
Ceiling Height Requirements
Building Protrusions

57. Z765-2013 Components Components of the ANSI Z765 Standard
Reporting of Area
Rounding
Above & Below Finished Area
Above & Below Unfinished Area

58. Where the Rubber Meets the Road
Examples

59. Where the Rubber Meets the Road
Example #1
1- Story 26’ X 40’, Flr-Ceiling Bump, No Bsmt.
1076 SF Above-grade

60. Where the Rubber Meets the Road
Example #2
1-Story 26’ X 40’, Bay Window Bump,No Bsmt.
1040 SF Above-grade

61. Where the Rubber Meets the Road
Example #3
1-Story 26’ X 40’, Bay, 25% below-grade Bsmt.
1004 SF Above-grade , 1040 SF Below-grade

62. Where the Rubber Meets the Road
Examples #4
2-Story 26’ X 40’, Bay, Bsmt + 6’ X 6’ Open Foyer
2044 SF Above-grade, 1040 SF Below-grade

63. Where the Rubber Meets the Road
Examples #5
2-Story 26’ X 40’, Flr, Bsmt + 6’ X 6’ Open Foyer
2044 SF Above-grade, 1076 SF Below-grade

64. Where the Rubber Meets the Road
Examples #6
2-Story 26’ X 40’, Flr, 25% below-grade Slab
1040 SF Above-grade, 1076 SF Below-grade

65. ANSI Z
Where to find:

66. Questions to Ponder
ANSI Z Questions

67. Multi-Family Residential Measurement Standard
ANSI BOMA Z
Multi-Family Residential Measurement Standard

68. Measuring Multi-Family Residential Properties Using BOMA Z65.4

69. Z65.4 Overview Scope Key Features Applicability History Definitions
Z Synopsis
Example

70. Z65.4 Scope 4+ Unit Residential Measurement Standard for Measuring
Calculating
Reporting
Seven Types of Building Area
Any ideas what they are?

71. Key Features Flexible Consistent Two Measuring Methods
Individual Units | Whole Building
Consistent
Standard Rules for Measuring & Reporting Area
Two Measuring Methods
Gross
Net

72. Building Types

73. BOMA History National Association of Building Owners and Managers
Founded 1907
Changed name to BOMA in 1968
Information source
Bldg. Codes, Legislation, Statistics, & Technology
16,500+ members

74. BOMA Z65.4 History Z65.1-2010 Office Bldg. Standard
Original Standard Circa. 1915
Z Industrial Bldg. Standard
Z Gross Area Bldg. Standard
Z Multi-Unit Res. Standard
Z Retail Bldg. Standard
Z Mixed-Use Bldg. Standard

75. Quiz Calculate the Following for a Unit: Construction Gross Area (CGA)
Void Area
Wall Width:
2’ thick between living units
1’ thick otherwise

76. Quiz Floor Plan
Quiz Floor Plan

77. Quiz Floor Plan Which is correct for CGA? 1040 SF 1144 SF 1077 SF
None of the above
Quiz Floor Plan

78. Quiz Answers 1077 SF for Construction Gross Area (CGA)
41’ X 22’ + 11’ X 11’ + 9’ X 6’ = 1077 SF
100 SF or 121 SF for Void Area
10’ X 10’ = 100 SF (Net Method)
11’ X 11’ = 121 SF (Gross Method)

79. Z Definitions

80. Definitions Building Perimeter Center Line Common Area
External perimeter around level or floor
Center Line
Mid-point of wall
Common Area
Shared by two or more units
Construction Gross Area (CGA)
Total area of all floor calculated using perimeter

81. Definitions

82. Definitions Demising Wall Finished (wall) Surface Limited Common Area
A wall between areas; may be same or different
Finished (wall) Surface
Face of wall | window; painted or clad wallboard
Limited Common Area
Private balconies, decks, patios, or porches
Living Unit
Residential Habitable Unit
Z65.4 makes no distinction between between finished | unfinished & above/below-grade areas.

83. Definitions

84. Definitions Major Vertical Penetrations (MVP)
Floor opening for ductwork & building utilities
More than one SF | 0.1 Sq. Meters
Located anywhere in CGA
Multi-Unit Residential Building
Building with 4+ residential Units
Includes: corridors, lobbies, parking, stairs, & storage

85. Definitions

86. Definitions Occupant Occupancy Voids Unit Gross Area (UGA)
A person(s) living or squatting in a living | storage unit
Occupancy Voids
An opening between floors in a single living unit
Includes: stairs, elevators, and dumwaiters
Unit Gross Area (UGA)
Overall area of either living or a storage unit
Method A, discuss in a bit

87. Definitions

88. Definitions

89. Definitions Restricted Headroom Area (RH) Storage Unit Area (SU)
Area in living unit that does not meet IBC minimum ceiling height.
Storage Unit Area (SU)
Enclosed area used for storage
Not part of or connected to living area
May be unfinished, have restricted headroom, limited building services, & not suitable for a use as living unit

90. Definitions

91. Definitions Structured Parking Area (SP) Unit Net Area (UNA)
An attached enclosed vehicle storage structure
Excludes off-street uncovered parking, on-grade parking below an elevated building, and carports
Detached parking garages are considered separately
Unit Net Area (UNA)
The net area of a living unit or a storage unit
Method B, discussed in a bit.

92. Definitions

93. Definitions Void An open air space where a floor is expected
Not part of CGA
Void Examples: atriums, and 2-story foyers
Major vertical penetrations are not voids
Different from occupant voids

94. Definitions

95. Z Definitions

96. Meat & Potatoes How to Apply Z65.4-2010

97. Meat & Potatoes Overview of Standard Unit Gross Area Method: Method A
Unit Net Area Method: Method B

98. Meat & Potatoes Gross Method: Method A Net Method: Method B
Measures gross area of unit
Net Method: Method B
Measures net area of unit
Measurement Rules
Must explicitly specify which method used
Z65.4 does not specify units | precision
Standard Application same for either Method

99. Meat & Potatoes Four Steps in apply Z65.4 Standard Determine CGA
Partition area by type for each floor
Determine boundaries of each type of space
Calculate all areas and tabulate

100. Meat & Potatoes

101. Meat & Potatoes Four Steps in apply Z65.4 Standard Determine CGA
Measure | Plans & Spec
Building perimeter boundary
Calculate Gross Area of each floor
Based on building perimeter boundary
Sum all floors

102. Meat & Potatoes Four Steps in apply Z65.4 Standard
Partition area by type for each floor (ID only)
Seven types of area
What are they???

103. Meat & Potatoes Seven Types of Areas
Major Vertical Penetration
Structured Parking
Living Units
Restricted Headroom
Limited Common Area
Storage Unit
Common Area
Voids aren’t considered a space, since they’re not part of CGA

104. Meat & Potatoes Four Steps in apply Z65.4 Standard
Determine boundaries of each type of space
Figure out wall measuring point
Interior finished side; also called near-side
Exterior side (finished | unfinished); also called far-side
Mid-point of wall
Use Wall Priority Diagrams to decide measuring point

105. Meat & Potatoes

106. Meat & Potatoes

107. Meat & Potatoes

108. Meat & Potatoes Four Steps in apply Z65.4 Standard
Calculate all areas and tabulate
Calculate areas: Net | Gross method | both methods
Tabulate areas of each type by:
Individual units; Net | Gross | both
Each floor
Sum all
Report in Global Summary of Areas form | similar form
Report units in feet | meters
Round to nearest square foot | square meter
Standard suggests follow steps in order

109. Meat & Potatoes
Eg; 2-sty plus bsmt. With underground parking garage

110. Putting it all Together

111. Putting it all Together
Calculate the Following for Unit A:
Construction Gross Area
Unit Gross Area
Unit Net Area
Major Vertical Penetration Area
Common Area
Limited Common Area
Void Area
Wall Width:
2’ thick between living units
1’ thick otherwise

112. Putting it all Together
Quiz Floor Plan

113. Putting it all Together
1077 SF; Construction Gross Area (CGA)
41’ X 22’ + 11’ X 11’ + 9’ X 6’ = 1077 SF
1023 SF; Unit Gross Area (UNA)
41’ X 22’ + 11’ X 11’ = 1023 SF
900 SF; Unit Net Area (UGA)
40’ X 20’ + 10’ X 10’ = 900 SF

114. Putting it all Together
64 SF for Major Vertical Penetration (MVP)
8’ X 8’ = 64 SF
167 SF for Common Area (CA)
11’ X 21’ – (8’ X 8’; elevator) = 167 SF
56 SF for Limited Common (LC) Area
6’ X 9’ = 54 SF
100 SF for Void Area
10’ X 10’ = 100 SF (Method B)

115. Putting it all Together

116. Wrap-Up
Questions

117. ANSI BOMA Z65.4-2010: Multi-family Measurement Standard
Fini!
ANSI BOMA Z : Multi-family Measurement Standard

118. ANSI BOMA Z65.4-2010 Where to find: