{"id":14752,"date":"2020-02-28T12:44:22","date_gmt":"2020-02-28T20:44:22","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=14752"},"modified":"2024-04-22T07:54:38","modified_gmt":"2024-04-22T14:54:38","slug":"buyer-are-basements-included-in-square-footage","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-are-basements-included-in-square-footage\/","title":{"rendered":"My Basement Is Enormous! Is It Included in My Home\u2019s Square Footage?"},"content":{"rendered":"

As part of a house, you might assume that a basement is included in the square footage of that home<\/a>. But that\u2019s not always true! Basements must meet specific criteria to add their area to a home\u2019s total square footage.<\/p>\n

The \u201care basements included in square footage\u201d question can cause a lot of confusion for potential homebuyers. You want your new home to have enough space to meet your lifestyle needs, but will you be able to get a mortgage<\/a> if the appraiser excludes the basement in the assessment of the home\u2019s value?<\/p>\n

Let\u2019s break down when a basement is considered part of a home\u2019s square footage, and when it isn\u2019t \u2014 no matter how big it is.<\/p>\n\n\n\n\n\n

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Basement square footage and financing<\/h2>\n

The rules about including basements in square footage will have a direct impact on your home purchase<\/a>.<\/p>\n

When you make an offer on a home<\/a>, square footage is a factor when determining its value. Your real estate agent finds comps<\/a>, or properties of similar size in the surrounding area that have sold recently, to guide you to a fair offer price. Appraisers will also use a similar process of evaluating comps, in addition to conducting an on-site review, as part of appraising the home\u2019s true value.<\/p>\n

Square footage is one of the key details that make a property comparable to another home, which means that you\u2019ll factor square footage into your offer price.<\/p>\n

Not only could an inaccurate square footage number cause you to pay too much, but it could also cause issues with financing. If your appraiser<\/a> doesn\u2019t include the basement in square footage \u2014 but you and the seller did \u2014 your potential new home might not appraise.<\/p>\n

Vince Grant<\/a>, an experienced real estate agent in Everett, Washington<\/a>, has seen this happen multiple times throughout his career. In one case, the homeowner measured the floor across the room and added 800 square feet to the home\u2019s square footage. But the appraiser looked at a gabled ceiling height, which prevented someone from standing upright in some areas of the room, and only included 300 finished square feet. \u201cIt came in at an appraisal of $270,000, on a $300,000 house,\u201d Grant says.<\/p>\n

If a home fails to appraise, you can\u2019t get a mortgage for the full sales price. While you can always contest an appraisal<\/a>, going that route often wastes valuable time and resources. Grant advises either negotiating<\/a> price with the homeowner or walking away.<\/p>\n

Fannie Mae spells out that if any<\/i> of your basement is below grade, the government-sponsored enterprise will not count any of its square footage. If you plan on using any government-sponsored programs<\/a> to finance your home, make sure to look into their requirements.<\/p>\n

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Basements and usable square footage<\/h2>\n

Square footage is also called \u201cgross living area\u201d or GLA, which might be a better way to think about it. If the square footage isn\u2019t livable, it doesn\u2019t count.<\/p>\n

That section of your basement under the stairs where you can\u2019t even stand up? It\u2019s not usable, so don\u2019t include it in square footage. To be considered \u201cliving area,\u201d a home\u2019s rooms must meet certain criteria \u2014 including the basement. Height clearances, whether it\u2019s heated, and the presence of windows: all of these make a space livable.<\/p>\n

Often, homes are appraised and assessed using square footage, or GLA, as a way for the appraiser or assessor to determine value. However, since GLA only includes above-grade square footage<\/a>, it will exclude a completely underground basement, whether that basement is fully finished or not.<\/p>\n

When is a basement excluded from square footage?<\/h2>\n

Simply put, a basement is excluded from square footage when it\u2019s:<\/p>\n