When buying or selling a home, square footage is one of the first things people want to know. It provides a quick sense of the modren house size and helps set expectations for space, layout, and value. But what exactly counts toward that square footage?
What Defines Square Footage in a Home?
When discussing square footage, the real estate industry adheres to specific standards, although these can vary slightly by region or organization.
What Is Square Footage?
Square footage refers to the total area of all livable spaces in a house. This usually means the footprint of the home multiplied by the number of floors—but with some important caveats.
- It typically includes finished, heated, and above-ground spaces.
- Areas like garages, porches, and unfinished basements usually don’t count.
- The focus is on spaces house design for living, such as bedrooms, kitchens, and living rooms.
Above-Ground vs. Below-Ground Spaces
One of the most significant distinctions is between above-ground living space and below-ground areas like basements.
- Above-ground spaces are almost always included in square footage.
- Basements, being below ground level, are often excluded unless they meet specific criteria.
Regional Differences and Appraisal Standards
Square footage measurements can vary depending on local rules and appraisal methods. For example:
- The American National Standards Institute (ANSI) sets guidelines widely followed in the U.S.
- Some regions may have stricter codes about what counts, especially with below-grade spaces.
- Appraisers use these standards to determine the Gross Living Area (GLA), which affects home value.
Finished vs. Unfinished Areas
Whether a space is considered finished or unfinished plays a crucial role:
- Finished spaces have completed walls, flooring, and heating.
- Unfinished areas, like raw basements or crawl spaces, usually don’t count toward square footage.
Understanding Basements: Types and Uses
Before deciding if basements count toward square footage, it helps to understand the different types and uses of basements.
What Is a Basement?
A basement is a space below the main living area, generally below ground level. But not all basements are the same:
- Full Basement: Extends under the entire house.
- Partial Basement: Covers only part of the house design.
- Walk-Out Basement: Has an exterior door that opens to the outside, often on a sloped lot.
Finished vs. Unfinished Basements
Basements can be finished or unfinished, which impacts whether they add to square footage:
- Finished Basements have completed walls, flooring, and often utilities, such as heating and lighting.
- Unfinished Basements are raw spaces, often used for storage or laundry.
Common Basement Uses
Basements serve many purposes:
- Storage areas for seasonal items or tools.
- Additional living space, such as family rooms, bedrooms, or home offices.
- Recreation areas like home gyms or game rooms.
The way a basement is used and finished can influence whether it’s included in the home’s square footage figure.
Is a Basement Included in Square Footage?
Now to the core question: Is a basement included in square footage? The short answer is: usually no, but it depends.
Industry Standards and Appraisal Rules
Most real estate professionals and appraisers follow these basic rules:
- Basements are generally not included in official square footage calculations.
- This is because basements are below ground level and often don’t meet specific living space criteria.
- However, finished basements that are heated and livable may be reported separately.
When Finished Basements Count
Sometimes, finished basements are counted, but only if:
- They meet the same standards as above-ground living space (e.g., ceiling height, heating, exits).
- Local appraisal guidelines allow including basement space in the total square footage.
- The basement is a walk-out or daylight basement with natural light and proper egress.
Real Estate Listings vs. Appraisal Reports
Different sources may report basement space differently:
Source Basement Inclusion in Square Footage
Real Estate Listings often list basement size separately, sometimes as “finished basement”
Appraisal Reports usually exclude the basement from the Gross Living Area (GLA) but note it separately.
Homeowners may include the basement in the total size for marketing purposes.
How Remodeling Affects Valuation
Finishing a basement increases the usable living space, which can:
- Boost a home’s market value.
- Affect appraisal reports, even if the basement isn’t included in the square footage.
- It is an essential selling point and justifies asking prices.
Impact of Including or Excluding Basements on Home Value
Basements can significantly impact how buyers and sellers perceive a property’s value.
Adding Usable Living Space
A finished basement adds extra rooms that homeowners can use for various purposes. This additional space can:
- Make the home feel larger.
- Provide flexibility for families needing more bedrooms or entertainment areas.
Effects on Appraisals and Listing Prices
- Appraisers may note basement improvements separately, which can increase the overall property value.
- Sellers often market basements as bonus space, even if they don’t count toward official square footage.
Insurance, Taxes, and Financing
- Insurance premiums may consider basement space if it’s finished and livable.
- Property taxes sometimes increase with basement improvements.
- Lenders may look at finished basement space differently when valuing the home for loans.
Potential Pitfalls
Misrepresenting basement space can cause:
- Buyer confusion or disappointment.
- Legal issues if the square footage is reported inaccurately.
- Problems during inspections or appraisals.
How to Properly Measure and Report Basement Space
If you want to measure and share basement space accurately, here’s how to do it correctly.
Step-by-Step Measurement
- Measure the length and width of the basement.
- Multiply length by width to find the total square footage.
- Note which areas are finished and heated.
- Identify ceiling height and window sizes (necessary for livability).
Gross Living Area (GLA) vs. Basement Space
- GLA includes finished, above-ground areas only.
- Basement square footage is usually listed separately as additional finished space.
Tips for Homeowners and Agents
- Always disclose the basement size clearly in listings.
- Use terms like “finished basement” or “additional living space” instead of including it in total square footage.
- Provide photos and details about the basement design condition.
Tools and Professionals
- Laser distance measurers can improve accuracy.
- Professional appraisers or home inspectors can offer reliable measurements.
- Some regions require certified measurements for official listings.
Is an unfinished basement counted in square footage?
No, unfinished basements typically do not count toward square footage because they aren’t considered livable space.
Does a walk-out basement add to square footage?
Not usually, but it may be included if it meets all living space requirements in your area.
Are basement rentals part of the total size?
If a basement is legally rented out and finished, it might increase value, but it’s often still reported separately from square footage.
How to communicate the basement space in listings effectively?
Use precise phrases like:
- “Finished basement: 800 sq. ft.”
- “Additional living area below ground.”
- Avoid mixing the basement size with the main living space to prevent confusion.
Mistakes to Avoid
- Overstating total square footage by including basements incorrectly.
- Forgetting to mention whether a basement is unfinished.
- Ignoring local measurement standards.
Regional and Market Differences
Basement inclusion in square footage varies depending on location and market.
Different Standards by Region
- Some states strictly exclude basements from square footage.
- Others allow finished lower levels to be included as part of the total size.
- Internationally, measurement standards can be very different.
Urban vs. Rural Markets
- Urban areas often have stricter measurement and appraisal rules.
- Rural markets may be more flexible in including basement space.
Building Codes and Appraisal Practices
Local building codes can affect:
- Minimum ceiling heights.
- Egress window requirements.
- Heating and ventilation standards.
These factors influence whether house basements qualify as livable space.
