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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When is the first date to appeal property taxes in Sacramento County?
Every $10,000 of assessed value equals about $100-125 out of your wallet. If you are overassessed by $50,000, for example, then that’s $500-625 of overpayment for the year. This might sound outrageous, but you’d be surprised how common it is for property owners to be overassessed. Over the past several years I’ve found most clients have been scheduled to overpay anywhere from $400-$1,000. The largest reduction a client received was over $10,000 for the year.
finding many of the 2011 appeals I did for home owners in the Fall of 2011 have already been resolved or are in process right now (there are some I’m still waiting on of course). 
How do you go about challenging a low appraisal? While you might feel frustrated beyond belief, it’s important to not make an emotional argument, but rather share facts and market data in a systematic way to support your case. The following document is a format I developed for my investor clients who kept asking me what they can do to deal with bad appraisals.