Measuring and Pricing Properties Using the ANSI Standard

Historically, property valuations depended on square footage, causing differences in market value based on what any one appraiser or real estate agent considered usable square footage. In April 2022, Fannie Mae announced that appraisers were to use the ANSI Z765-2021 Standard for any property whose loan was to be sold to them. These new guidelines caused major confusion within the real estate industry as allowable square footage was now subject to new rules when measuring a property. In this class, reasoning for the implementation of the ANSI Standard will be covered, along with the very specific rules about allowable square footage. Several residential floor plans will be used to illustrate proper measurements. Students will learn to create a valid CMA using these new standards to price their properties appropriately and know they are in line with the appraisal.

Learning Objectives:

1. Understand the various terms found in the ANSI requirement.
2. Identify the best practices for measuring the improvements to a 1–4-unit residence.
3. Describe the method of measurement and calculations of square footage.
4. Identify areas excluded from square footage under ANSI.
5. Improve their CMA pricing based on the Fannie Mae Selling Guide released December 2022.
6. Identify the best properties for comps based on the Fannie Mae requirements.