Below-Grade Area
Any portion of a building that is below the ground level on any side. In residential appraisal, below-grade finished area is valued separately from above-grade GLA because the market typically assigns lower value per square foot to below-grade space.
Below-grade space includes basements (full, partial, walkout, and daylight types). Even if a basement is fully finished with bedrooms, bathrooms, and a kitchen, it cannot be included in GLA under ANSI standards. The appraiser reports below-grade area separately and adjusts comparables for differences in below-grade finished area. Walkout and daylight basements typically command higher market premiums than standard basements due to natural light and direct exterior access. Bedrooms in below-grade areas may not count toward the official bedroom count depending on local building codes (egress window requirements).
Related Terms
Gross Living Area (GLA)
GLAThe total finished, above-grade living area of a residential property, measured in square feet.
Gross Building Area (GBA)
GBAThe total area of a building measured from the exterior walls, including all finished and unfinished, above-grade and below-grade spaces.
ANSI Z765 Measurement Standards
ANSIThe American National Standards Institute standard for measuring residential floor area.
Adjustment
A dollar or percentage modification applied to a comparable sale's price to account for differences between the comparable and the subject property.
More in Property Characteristics
View allEffective Age
The age of a property as indicated by its condition, maintenance, and updates, which may differ from its actual (chronological) age.
Remaining Economic Life
The estimated number of years a property's improvements are expected to continue contributing to the property's value, calculated as total economic life minus effective age..
Site Value
The market value of the land as if vacant and available for development to its highest and best use.
Functional Obsolescence
A loss in property value caused by deficiencies or superadequacies within the property itself, such as an outdated floor plan, insufficient electrical capacity, or an over-improvement relative to the neighborhood..