Ask The Appraiser: Does an Arizona Sunroom Count as Livable Square Footage?

  appraisal value of an arizona sunroom  

Ask The Appraiser...

Question:

I'm interested in a house in AZ which includes an added sunroom in the sq footage of the house. This sunroom was built under the former patio. It has a separate A/C from the original house and it is entered by the backdoor of the kitchen. For appraisal purposes can this sunroom be included as livable sq feet?

Short Answer:

It depends.

This would depend on the quality and condition of the AZ room as well as access, HVAC, etc. Simply enclosing a patio or adding windows to an existing porch does not automatically make a sunroom part of a home's gross living area (GLA). An appraiser will look at how the space was constructed, finished, heated and cooled, how it connects to the rest of the home, and whether it functions as year-round living space.

From your question, it does not sound like the AZ room should be included in the gross living area of the home, however with that being said - the value of the AZ room may or may not be similar to the main living area depending on what the market dictates.

Long Answer:

Even if the sunroom isn't included in the home's livable square footage, it may still add value to the property.

For instance: if you are in an area where it is common to have an AZ room the market may dictate that the public will pay a similar price per square foot of the AZ room as it does for the rest of the home. This would likely be adjusted on a separate line of the appraisal but may not have an impact on value.

Another thing to consider is if the AZ room had permits. You can check this several ways but the easiest way is to go the Maricopa County Assessors web site and enter either the parcel number or address of the property. When it shows up click on the parcel number and it will take you to another page which will give you some basic information about the parcel including the owner, subdivision and last sales date. Just below that is a blue line and on the far right a space that says jump to. Hover over that and click on Sketches and it will take you to a sketch of the property (if available). If the area of the AZ room is shown as a patio or covered patio it most likely did not have permits. If it is shown as an addition it most likely had permits. If it had permits and is consistent with the design, quality and condition of the rest of the home it could be included in the gross living area of the home.

The main concern for the property you are talking about appears from your description that it does not have a heat source but rather only a wall or window AC unit which would then again likely require it to be valued separately from the main home.

 

What Makes a Sunroom Livable Square Footage?

When an appraiser determines the gross living area of a home, it isn't simply a matter of measuring every enclosed space under the roof. The appraiser has to determine whether the sunroom is actually part of the home's finished living area. Some of the things an appraiser may consider include:

  • Is the sunroom finished to a similar quality as the rest of the home?
  • Does it have permanent heating and cooling?
  • Can it be comfortably used throughout the year?
  • Is it directly accessible from the home's primary living area?
  • Is the flooring and interior finish similar to the rest of the home?
  • How was the room constructed?
  • Was the space originally designed as living area or converted from a patio or porch?
  • Were appropriate permits obtained for the addition or conversion?

A sunroom that looks and functions like an extension of the home's existing living area may be treated differently than a screened patio that was later enclosed with windows.

 

Arizona Sunrooms Have an Important Consideration: Cooling

Here in Arizona, there's another important consideration: Can the space actually be used comfortably during our summer months?

An enclosed room surrounded by windows can become extremely hot when temperatures climb. Simply installing windows and enclosing a patio doesn't necessarily create functional, year-round living space. An appraiser will consider whether the sunroom is adequately heated and cooled and whether it functions similarly to the rest of the home. A permanently integrated HVAC system may be viewed differently from a portable air conditioner or other temporary cooling solution.

The appraiser must ultimately determine how the space functions and how buyers in the local real estate market would view it.

 

Does a Sunroom Add Value If It Doesn't Count as Square Footage?

Not counting a sunroom as gross living area does not necessarily mean the sunroom has no value.

Let's say you have a 2,000-square-foot home with a 300-square-foot enclosed sunroom. If the appraiser determines that the sunroom doesn't qualify as GLA, the home doesn't automatically become a 2,300-square-foot home for appraisal purposes. However, that additional 300-square-foot space may still be an appealing feature that buyers are willing to pay for.

The appraiser can analyze comparable properties with similar Arizona rooms, enclosed patios, or sunrooms to determine how the local market reacts to that feature. Based on available market evidence, the sunroom may receive separate consideration in the appraisal.

This distinction is important because price per square foot isn't as simple as multiplying additional square footage by the neighborhood's average price per square foot. Different property features contribute value differently.

 

What If the Sunroom Wasn't Permitted?

Permits can also become an issue when patios, garages, or other areas of a home have been converted into living space. An unpermitted addition isn't automatically worthless, but the appraiser may need to consider the quality of construction, whether the work appears to meet typical building standards, how buyers react to unpermitted space, and whether the area can appropriately be considered part of the home's living area.

If you've added, remodeled or converted space in your home, learn more about how an addition can affect your home's appraised value.

 

What If the MLS or County Records Include the Sunroom?

Another common source of confusion occurs when the homeowner sees one square footage number in county records, another in the MLS, and potentially a different number in an appraisal. Just because a sunroom was included in the square footage of a previous real estate listing doesn't automatically mean an appraiser will include it in GLA.

Appraisers independently analyze and measure the property according to applicable appraisal standards. If the appraiser determines that an enclosed patio or sunroom doesn't meet the criteria for finished living area, it may be reported separately.

If you've noticed discrepancies in your property's records, read more about what happens when the square footage on your home is wrong.

 

A Sunroom Can Add Value Without Adding Livable Square Footage

When it comes to an Arizona room or sunroom, there are really two separate questions:

1. Does it count toward the home's gross living area?
2. Does it contribute value to the property?

The answers don't necessarily have to be the same.

An Arizona sunroom doesn't automatically become part of a home's livable square footage simply because it has been enclosed. The appraiser must consider its construction, finish, heating and cooling, accessibility, and how the space functions compared with the rest of the home. Even when the space isn't included in GLA, a well-built and functional sunroom can still be an attractive feature that contributes value in the eyes of buyers.

 

Have a Question for Ask The Appraiser?

If you're wondering how a sunroom or another improvement affects the value of your Phoenix-area home, Master Appraisal Services can provide an independent, professional opinion of value based on your property and the local market.

 

Contact Master Appraisal Services today to schedule your home appraisal or submit your question for Ask The Appraiser.