An appraiser is completing a URAR form and needs to report the gross living area of the subject property. The property has 1,200 sq ft on the main level, 800 sq ft on the second level, and 600 sq ft of finished basement space. What gross living area should be reported?
Correct Answer
B) 2,000 sq ft
Gross living area on the URAR form includes only above-grade finished living space. The main level (1,200 sq ft) plus second level (800 sq ft) equals 2,000 sq ft. Basement space is reported separately as below-grade finished area.
Why This Is the Correct Answer
Option B (2,000 sq ft) correctly calculates the gross living area by adding only the above-grade finished spaces: main level (1,200 sq ft) plus second level (800 sq ft). The finished basement space of 600 sq ft is properly excluded from the GLA calculation as it represents below-grade area. This follows the standard URAR reporting requirements where basement space, even when finished, is reported separately in the below-grade finished area section of the form.
Why the Other Options Are Wrong
Option A: 1,200 sq ft
Option A only includes the main level square footage (1,200 sq ft) and incorrectly excludes the second level, which is clearly above-grade finished living space that must be included in GLA.
Option C: 2,600 sq ft
Option C incorrectly includes all three areas (1,200 + 800 + 600 = 2,600 sq ft), failing to distinguish between above-grade and below-grade spaces, which violates URAR reporting standards.
Option D: 2,400 sq ft
Option D appears to use an incorrect calculation method, possibly adding the main level twice or using some other flawed mathematical approach that doesn't align with proper GLA calculation standards.
Above the Ground Rule
Remember 'GLA = Ground Level and Above' - if you can see sky above it from outside, it counts toward GLA. Basement = Below = Separate reporting.
How to use: When calculating GLA, visualize standing outside the house and only count the square footage of floors where you can see sky above them. Any space below ground level gets reported separately.
Exam Tip
Always read carefully to identify which spaces are above-grade versus below-grade, and remember that basement square footage never counts toward GLA regardless of finish quality.
Common Mistakes to Avoid
- -Including finished basement space in GLA calculation
- -Forgetting to add all above-grade levels together
- -Confusing total finished area with gross living area
Concept Deep Dive
Analysis
This question tests the fundamental concept of Gross Living Area (GLA) calculation on the Uniform Residential Appraisal Report (URAR) form. The key distinction is understanding that GLA only includes above-grade finished living space, which excludes basement areas regardless of their finish quality. This is a critical measurement standard in residential appraisal that affects property valuation and comparability analysis. The URAR form specifically separates above-grade and below-grade areas to provide clear property descriptions for lenders and other users of the appraisal report.
Background Knowledge
Gross Living Area (GLA) on URAR forms must only include above-grade finished living space, measured from exterior walls. Below-grade areas like basements are always reported separately, even when fully finished and habitable.
Real-World Application
In practice, appraisers must clearly distinguish GLA from total finished area when selecting comparable properties and making adjustments, as above-grade and below-grade spaces have different contributory values to overall property worth.
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