In a covered Fannie Mae assignment, the primary dwelling has 2,100 square feet expressly meeting the applicable finished above-grade definition, plus a 400-square-foot unfinished attic and an 800-square-foot unfinished below-grade level. What is the stated finished above-grade area?
Correct Answer
C) 2,100 sf
The stipulated qualifying finished above-grade area is 2,100 square feet. Neither the 400-square-foot unfinished attic nor the 800-square-foot unfinished below-grade space belongs in that finished above-grade figure. Report other applicable areas separately; exclusion from this total does not establish zero contributory value.
Why This Is the Correct Answer
Option C is correct because the stated finished above-grade area is 2,100 square feet. The 400-square-foot attic is unfinished and the 800-square-foot lower level is both unfinished and below grade, so neither is added. Under the cited guide, areas that do not conform to the ANSI definition of finished area are reported as unfinished area.
Why the Other Options Are Wrong
Option A: 3,300 sf
Option A, 3,300 sf, results from 2,100 + 400 + 800, adding both the unfinished attic and the unfinished below-grade level. Neither is finished above-grade area, so the correct figure stays at 2,100 sf.
Option B: 2,500 sf
Option B, 2,500 sf, results from 2,100 + 400, adding the 400-square-foot unfinished attic. Unfinished attic space is reported as unfinished area, so the finished above-grade area is 2,100 sf.
Option D: 2,900 sf
Option D, 2,900 sf, results from 2,100 + 800, adding the unfinished below-grade level. That space is neither finished nor above grade, so the finished above-grade area is 2,100 sf.
Finished AND Above
To count, space must be both finished and above grade; failing either test keeps it out.
How to use: Use this two-test check before adding any area to above-grade living area.
Exam Tip
Apply both tests, finished and above grade, to each area listed. Distractor totals are often built by adding the areas that fail one of the tests.
Common Mistakes to Avoid
- -Adding unfinished attic space to living area
- -Adding basement area to above-grade area
- -Treating excluded space as having zero value
Concept Deep Dive
Analysis
This question tests which areas belong in finished above-grade area. Only space meeting the finished above-grade definition counts, here stated as 2,100 square feet. Unfinished attic space and unfinished below-grade space are reported separately and not added.
Background Knowledge
Finished above-grade area is the primary living area figure used to compare one-unit dwellings. Unfinished areas and below-grade areas are reported separately. Excluding space from the finished above-grade total does not mean that space has no contributory value.
Real-World Application
An appraiser measures a two-story house with an unfinished walk-up attic and an unfinished basement. The appraiser reports 2,100 square feet of finished above-grade area and lists the attic and basement separately, considering their contribution through market evidence.
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