Under Fannie Mae Selling Guide B4-1.3-05, gross building area (GBA) is the total finished area including interior common areas based on exterior measurements; it is the most common comparison for two- to four-unit properties; it must include finished above- and below-grade living areas; and it cannot count exterior common areas such as open stairways. A two-unit subject has finished above-grade living area of 2,400 square feet and finished below-grade living area of 800 square feet (both measured consistently on an exterior basis, with interior common hallways already reflected in those exterior measurements). An open exterior stairway serving the units measures 90 square feet. What GBA should be used for comparison?
Correct Answer
A) 3,200 square feet
Under the specified policy/measurement basis, GBA=2,400 SF finished above grade+800 SF finished below grade=3,200 SF. The interior common hallways are already included and must not be counted twice. Exclude the 90 SF open exterior stairway. Consistency and stated area components matter.
Why This Is the Correct Answer
Option A is correct because GBA = 2,400 square feet finished above grade + 800 square feet finished below grade = 3,200 square feet. The interior common hallways are already reflected in those exterior measurements, so they are not added again. The 90-square-foot open exterior stairway is an exterior common area and cannot be counted.
Why the Other Options Are Wrong
Option B: 2,400 square feet
Option B, 2,400 square feet, counts only the finished above-grade area and leaves out the 800 square feet of finished below-grade area. The cited policy requires finished below-grade living area to be included, giving 2,400 + 800 = 3,200 square feet.
Option C: 3,290 square feet
Option C, 3,290 square feet, results from 2,400 + 800 + 90, adding the open exterior stairway. Exterior common areas such as open stairways cannot be counted, so the correct total is 3,200 square feet.
Option D: 800 square feet
Option D, 800 square feet, counts only the finished below-grade area and drops the 2,400 square feet above grade. The correct GBA adds both: 2,400 + 800 = 3,200 square feet.
Inside Counts, Outside Doesn't
For GBA, finished space and interior common areas count; open exterior stairways and other exterior common areas do not.
How to use: Use this to decide which listed areas belong in a 2-4 unit GBA total.
Exam Tip
Add each finished area the policy includes, check whether interior common areas are already counted, and remove any exterior common area before choosing.
Common Mistakes to Avoid
- -Leaving finished below-grade area out of GBA
- -Adding open exterior stairways to GBA
- -Counting interior hallways twice when they are already in exterior measurements
Concept Deep Dive
Analysis
This question tests applying the Fannie Mae gross building area rules for two- to four-unit properties. GBA includes finished above-grade and below-grade living area plus interior common areas on an exterior basis, but excludes exterior common areas such as open stairways. Adding the right components and leaving out the open stairway gives the answer.
Background Knowledge
For two- to four-unit properties, Fannie Mae uses gross building area as the most common basis for comparison. It must be developed consistently for the subject and comparables, include finished above- and below-grade areas and interior common areas, and exclude exterior common areas. This differs from the above-grade living area comparison used for one-unit dwellings.
Real-World Application
An appraiser measures a duplex with a finished basement apartment and an open exterior staircase to the upper unit. The appraiser computes GBA from exterior measurements of both finished levels, excludes the open staircase, and develops the comparables' GBA the same way.
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