When it comes to real estate and housing, various terms and acronyms are used that can be confusing for those not familiar with the industry. One such acronym is GLA, which stands for Gross Living Area. Understanding GLA is crucial for anyone involved in buying, selling, or appraising homes, as it directly impacts property valuation and comparison. In this article, we will delve into what GLA means, how it is calculated, its importance in real estate, and common misconceptions associated with it.
Understanding GLA: Gross Living Area
Definition of GLA
Gross Living Area (GLA) refers to the total finished and heated living space within a residential property. This measurement is used to determine the size of a home in real estate transactions and appraisals. GLA includes areas such as bedrooms, bathrooms, kitchens, and living rooms but excludes unfinished spaces, garages, and exterior structures like balconies and patios.
Components of GLA
To better understand what constitutes GLA, it is important to know what is included and excluded in this measurement:
- Included in GLA:
- Bedrooms
- Bathrooms
- Living rooms
- Dining rooms
- Kitchens
- Family rooms
- Finished basements (if they meet certain criteria)
- Finished attics (if they meet certain criteria)
- Excluded from GLA:
- Garages
- Unfinished basements
- Unfinished attics
- Porches
- Patios
- Exterior structures
Criteria for Inclusion in GLA
For a space to be included in GLA, it generally must meet specific criteria:
- Finished: The area must be finished with flooring, walls, and ceilings.
- Heated: The space must be heated and suitable for year-round use.
- Accessible: The space must be easily accessible from the main living areas of the home.
Calculating GLA
Measuring the Area
Calculating GLA involves measuring the total square footage of the finished, heated, and accessible areas within a home. This is typically done by measuring the exterior dimensions of the house and then subtracting areas that do not qualify as living space.
Accounting for Multiple Stories
In homes with multiple stories, each floor’s GLA is measured and then added together to get the total GLA. For example, if a two-story home has a finished and heated main floor of 1,000 square feet and an upper floor of 800 square feet, the total GLA would be 1,800 square feet.
Special Considerations
- Finished Basements: Basements can be included in GLA if they are finished and heated, and if the quality of finish is comparable to the rest of the home. However, in many markets, basements are often valued differently than above-ground living space.
- Finished Attics: Similar to basements, attics can be included if they are finished, heated, and meet height and accessibility requirements.
Importance of GLA in Real Estate
Property Valuation
GLA is a critical factor in determining a property’s value. Appraisers use GLA to compare similar properties and make adjustments based on differences in size. A larger GLA generally indicates a higher property value, assuming other factors such as location, condition, and amenities are comparable.
Comparative Market Analysis (CMA)
Real estate agents use GLA when performing Comparative Market Analyses (CMA) to help sellers set listing prices and buyers make informed offers. By comparing the GLA of similar homes in the area, agents can provide accurate price recommendations.
Mortgage Appraisals
Lenders rely on appraisals to determine the market value of a property before approving a mortgage. Accurate GLA measurements ensure that the lender is making a loan based on the correct valuation of the property.
Common Misconceptions About GLA
Including Non-Livable Spaces
One common misconception is that any space within the home’s structure is included in GLA. However, as discussed, non-livable spaces like garages, unfinished basements, and exterior areas are not included in GLA calculations.
GLA vs. Total Area
GLA should not be confused with the total area of a property. The total area includes all enclosed spaces, finished or not, while GLA focuses solely on the livable, heated, and finished areas. This distinction is important when evaluating and comparing properties.
Regional Variations
There can be regional differences in how GLA is measured and what is included. For instance, some areas may place different values on finished basements or have specific regulations about what counts as living space. It is important to be aware of local standards when dealing with GLA.
Enhancing Property Appeal with GLA
Maximizing Usable Space
Homeowners looking to increase their property’s value should consider finishing basements or attics if feasible. By converting these spaces into livable areas, they can increase the GLA, which can enhance the home’s marketability and value.
Quality of Finish
The quality of finish in the included areas also affects the GLA’s impact on property value. High-quality finishes that match the rest of the home’s interior can significantly increase the appeal and value of the additional living space.
Energy Efficiency
Ensuring that all areas included in the GLA are properly heated and energy-efficient can also add value. Energy-efficient windows, insulation, and heating systems in finished basements and attics can make these spaces more attractive to potential buyers.
