A house has 1,400 sq ft on the main floor and 900 sq ft on a full second floor, plus a 700 sq ft finished walk-out basement. GLA is:
Correct Answer
A) 2,300 sq ft
Why this is correct: Gross Living Area (GLA) is defined as the total finished, above-grade living space. Here, the main floor (1,400 sq ft) and second floor (900 sq ft) are above grade, summing to 2,300 sq ft. The finished walk-out basement, while usable, is below grade and excluded from GLA; it must be reported and valued separately. Why the other choices are wrong: "3,000 sq ft including the finished basement" incorrectly adds the 700 sq ft basement to GLA, inflating the figure against which comparables are measured. "1,400 sq ft, counting the main level only" ignores the finished second floor, which is above grade and part of GLA. "2,100 sq ft, averaging the levels together" is a miscalculation with no appraisal basis. Exam tip: GLA = finished above-grade areas only. Basements, even finished, are separate line items.
Why This Is the Correct Answer
Option A adds only the two above-grade levels: 1,400 square feet on the main floor plus 900 square feet on the second floor equals 2,300 square feet of gross living area. The 700-square-foot finished walk-out basement is excluded from that figure and reported separately as finished below-grade area, along with its room count. Both pieces of information reach the intended user; they simply travel on different lines of the report.
Why the Other Options Are Wrong
Option B: 3,000 sq ft including the finished basement
This adds the 700-square-foot basement into GLA, inflating the figure by 30 percent against comparables measured correctly. Direct exterior access does not convert below-grade area into above-grade area under the standard convention. The result would be a subject that appears larger and, per square foot, cheaper than it really is.
Option C: 1,400 sq ft, counting the main level only
Counting only the main floor drops a fully finished, entirely above-grade second story that unquestionably belongs in GLA. This mistakes footprint for living area. It is the same error as reporting the building's ground coverage instead of measuring each level.
Option D: 2,100 sq ft, averaging the levels together
The 2,100-square-foot figure is what you get by adding the main floor and the basement while ignoring the second story, which is wrong twice over. No measurement standard averages or otherwise blends levels. When an option offers arithmetic with no rule behind it, treat that absence as the tell.
One Foot Below, Whole Level Goes
If even one foot of a level sits below the surrounding grade, the entire level goes below the line, walk-out door and all. Daylight does not promote a basement.
How to use: When a stem describes a walk-out, garden level, daylight, or partially exposed basement, immediately move it out of GLA and put it on the separate below-grade line before adding anything.
Exam Tip
Expect at least one GLA item where the basement is described attractively to tempt you. The adjectives are noise; only the grade line matters.
Common Mistakes to Avoid
- -Counting a walk-out or daylight basement as above-grade living area
- -Omitting finished below-grade area from the report entirely
- -Applying the above-grade rate per square foot to below-grade space
Concept Deep Dive
Analysis
This item adds the wrinkle that traps most candidates: a walk-out basement. Gross living area counts only finished space that is entirely above grade, and the prevailing convention treats a level as below grade if any portion of it is below the surrounding ground, no matter how much daylight or direct exterior access the exposed side provides. A walk-out therefore stays out of GLA and is reported on its own line, where it is compared to similar below-grade space in the comparables and typically contributes at a lower rate per square foot. The purpose is not to deny that the space is valuable but to keep the comparison apples to apples across the grid.
Background Knowledge
You need the rule that gross living area includes only finished area entirely above grade, and the convention that a level with any portion below grade is treated as below grade in full. You also need to know that finished below-grade area is reported and adjusted on a separate line rather than discarded.
Real-World Application
Appraising a hillside home with a fully finished walk-out lower level, the appraiser reports 2,300 square feet of GLA plus 700 square feet of finished below-grade area, and derives the below-grade contribution from sales of similar walk-out homes rather than applying the above-grade rate.
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