Certified Residential Appraiser Practice Exam

How is gross living area defined?

1. Measured from the inside of the building

2. Measured from the outside of the building, above ground

3. Calculated based on the number of rooms

4. Calculated as total square footage of the lot

The correct answer is: Measured from the outside of the building, above ground

Gross living area (GLA) is defined specifically as the total area of all finished, habitable space in a residential property that is measured from the outside of the building and is above ground level. This definition underscores the importance of considering only the livable space that can be utilized, excluding any areas that are below ground (like basements) or unfinished (like attics). By measuring from the outside, GLA takes into account the entire thickness of the walls, ensuring that the measurement reflects the total usable floor area. This method provides a standardized way to evaluate residential properties, making it easier to compare them in terms of market value and usable space. The focus on above-ground space also aligns with common practices and guidelines in residential appraisal. In contrast, measuring from the inside would not account for wall thickness, potentially leading to discrepancies in reported square footage. Calculating based on the number of rooms does not provide an accurate measure of usable space since room sizes can vary significantly. Finally, calculating total square footage of the lot does not pertain to habitable space but rather to the entire property area, which is not relevant when defining gross living area.