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Image of Brady Bell - Bellhaven Blog Author

Written by: Brady Bell

Published Dec 4, 2024

"Doing my best to make real estate easy to understand for the average Joe."

2 min

49 sec read

Glossary Term

Appraisals Category Image
Appraisals Category Image
Appraisals Category Image
  1. 1.What is Above Grade Finished Space in a House?
    2.Key Components of Above Grade Finished Space
    3.Why Above Grade Finished Space Matters
    4.Common Misconceptions
    5.Above Grade vs. Below Grade Space
    6.Measuring Above Grade Finished Space
    7.Impact on Real Estate Transactions
    8.Future Considerations
    9.Conclusion

What is Above Grade Finished Space in a House?

I love talking about real estate terms that make a big difference in how we value homes. Above grade finished space might sound technical, but it's actually pretty straightforward and super important when you're buying or selling a house.

Above Grade Finished: The total finished living space in a home that is located above ground level, excluding basements and below-grade areas. Above grade finished space typically includes the main floor and any upper levels that have been completed with walls, flooring, and ceiling finishes.

Key Components of Above Grade Finished Space

Let's break down what makes a space "finished" above grade. Think of it like putting together a puzzle - you need all the pieces to make it complete.

A properly finished space needs:

  • Walls with proper insulation and complete surface finishing

  • Full flooring installation (hardwood, tile, carpet, etc.)

  • Finished ceiling with appropriate materials

  • Heating and cooling systems integrated into the space

Now, here's what doesn't count as above grade finished space:

  • Your basement (even if it's gorgeous and fully finished)

  • Any rooms that sit partially below ground level

  • That dusty attic space you use for storage

  • Your garage, no matter how nice it looks

Why Above Grade Finished Space Matters

Your home's above grade finished space directly affects its market value. Real estate agents and appraisers use this number to calculate price per square foot and compare homes in your area.

Insurance companies also pay attention to this measurement. They use it to determine coverage amounts and replacement costs. The more accurate your above grade finished space measurement, the more accurate your insurance coverage will be.

Common Misconceptions

I often hear confusion about what counts as above grade finished space. That beautiful finished basement? Nope, doesn't count. Your enclosed sunroom? Maybe - it depends on whether it meets local building codes and has proper climate control.

Split-level homes create extra confusion. Only count the space that sits completely above ground level. That middle level that's half underground? Sorry, that's considered below grade.

Above Grade vs. Below Grade Space

The main difference between above and below grade space comes down to where it sits relative to ground level. Above grade space typically offers better natural light, ventilation, and fewer moisture concerns. Building codes often have stricter requirements for below grade spaces, particularly regarding emergency exits and ventilation.

Measuring Above Grade Finished Space

Professional measurements follow specific guidelines:

  • Measure from the exterior walls

  • Include stairways and closets

  • Exclude open two-story spaces (only count the actual floor space)

  • Round to the nearest square foot

Impact on Real Estate Transactions

When selling your home, accurate above grade finished space measurements matter. Buyers look at this number first when comparing properties. It helps them understand what they're getting for their money and makes comparisons easier.

Future Considerations

Looking to increase your above grade finished space? Consider these options:

  • Converting an unfinished attic into living space

  • Adding a second story

  • Building a room addition

Conclusion

Above grade finished space plays a huge role in your home's value and marketability. Getting accurate measurements and understanding what counts (and what doesn't) helps you make better decisions about your property.

Contact Bellhaven Real Estate for a professional evaluation of your home's above grade finished space. We'll help you understand your home's true value and potential in today's market.

Related terms

Related terms

  1. 1.What is Above Grade Finished Space in a House?
    2.Key Components of Above Grade Finished Space
    3.Why Above Grade Finished Space Matters
    4.Common Misconceptions
    5.Above Grade vs. Below Grade Space
    6.Measuring Above Grade Finished Space
    7.Impact on Real Estate Transactions
    8.Future Considerations
    9.Conclusion

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