Did you know any portion of a wall below five feet in height is NOT considered to be living area? This is called the “5-foot rule” for calculating square footage, and the image below will help illustrate the rule.
As you can see, both sides of the A-frame unit above are below 5 feet in height, which means the portions outlined in red are NOT considered to be living area. This extra space is best considered “building area” and not “living area” due to ANSI guidelines. This means the appraiser would not include the “building area” as a part of the square footage.
When does the 5-foot rule apply in Sacramento? While we might not have many A-frame houses in the Sacramento area, the 5 foot rule is especially relevant when considering converted attics and second stories in classic neighborhoods like East Sacramento, Curtis Park, Land Park and Midtown. Newly constructed houses usually have 90 degree angles for walls, but that’s not the case in older areas where the upstairs can often look like the images below.
Why does this matter? There can be a huge square footage discrepancy when the 5 foot rule is not considered. If the GLA (gross living area) is off by 200 square feet, for example, that could make a big difference in value – especially in high dollar neighborhoods where extra space makes a huge difference. Moreover, if you are selling or marketing a home, it’s probably a good idea to advertise the correct GLA so as not to be misleading.
When do you run into needing to use the “5 foot rule”? How have you seen this rule make a difference in price, marketing strategy or value?
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Kudos to Zillow for recognizing that there is a difference between sales price and value. While their values are unfortunately way off in this instance, many in the real estate community confuse sales price with value. A sales price may or may not be the same as value.
How long can you appeal your “base year” value? In the case of legitimate overpayment, there can be tax relief for the property owner, but the owner can only appeal the “base year” value within four years of the date of purchase. After four years, there is nothing the owner can do to correct the base year value. In California the “base-year” or “Proposition 13” value is the assessment level the Assessor assigns to a property when it is first purchased. All other years of taxation are “based” on this original assessment, so it’s definitely an important number. For example, if you bought a property for $500,000, and the Assessor determined market value was indeed $500,000 at the time, then your property taxes should not exceed that level in the future beyond an