“Hey Anthony, I’ve got a real estate agent who is including the sunroom in the square footage and pricing the home based on that. Is that correct?”
The short answer? No, it’s not.
When pricing a home, you need to be cautious about including areas like sunrooms, attics, or basements in the overall square footage. While they may add appeal, they can’t always be counted as living space, and doing so can lead to overpricing if specific conditions aren’t met.
When Can You Include a Sunroom in Square Footage?
You can only include the square footage of a sunroom when these conditions are met:
- Heated: The sunroom must be heated to the same degree as the rest of the home.
- Seamless Construction: The sunroom should be built to the same quality as the rest of the home. If it’s lower in quality or feels like an add-on, you need to adjust for that.
Ceiling Height Requirements (IRC Standards)
Under the International Residential Code (IRC), ceiling heights must meet specific minimums for the space to count as habitable square footage:
- 7 feet is the minimum ceiling height required for most living spaces.
- Areas under sloped ceilings can still count as habitable space, but only portions where the ceiling height is 5 feet or higher.
Why Does This Matter?
You wouldn’t price a home based on two different quality standards, just like you wouldn’t list a house with a luxury kitchen and a dated bathroom as if both were high-end. Inconsistent quality or non-compliant square footage can lead to overpricing, affecting appraisals and possibly causing deals to fall apart late in the process.
Other Important Considerations
When evaluating sunrooms or other non-traditional spaces, keep these factors in mind:
- Ceiling Height: As mentioned above, make sure the ceiling height complies with IRC standards.
- Legal Permissibility: If the space isn’t legally permitted under current zoning laws, it has no value. Confirm with local authorities that the sunroom or additional space is allowable under current regulations before including it in square footage.
Why It Matters for You
Incorrectly pricing a home based on improper square footage can lead to inflated list prices or offers and deals falling through when it gets to appraisal As an agent or loan officer, understanding how to evaluate square footage properly gives you a competitive edge.
Here is the video that goes along with this newsletter: https://www.instagram.com/p/C-iZuqgveGq/
Ready to avoid costly mistakes and price homes with confidence? I’ve created the first-of-its-kind Pricing and Appraisal Masterclass—specifically designed for real estate agents. No other appraiser has put together a comprehensive course like this, covering everything you need to know when working with appraisers and pricing homes. It helps you stay ahead of issues that can arise at the 25th hour and teaches you how to effectively rebut an appraisal when the appraiser hasn’t done their job correctly.
My team and I appraise properties throughout the greater San Francisco Bay Area and surrounding counties, so if you’re in Northern California, we’ve got you covered! To learn more, visit ValuedAudit.com or follow me on Instagram at @Anthony_young_appraiser. Have questions? Feel free to call me at 925-999-0144. I’m always here to help you navigate pricing and appraisal challenges in your market.
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