When determining a home’s square footage, the answer to whether a garage is included is almost always no. The confusion stems from the different definitions of “area” used across the real estate industry. The standard measurement for home valuation focuses exclusively on the finished, habitable space. Understanding this distinction is necessary to accurately interpret property listings and documents.
The Standard Rule: Why Garages Are Excluded
The industry standard for calculating a home’s size is known as Gross Living Area, or GLA. This metric is used by appraisers and lenders because it represents the space that is fully finished and suitable for year-round habitation. To qualify as GLA, a space must meet several specific criteria that define it as finished and livable.
A space must have a permanent, conventional heat source that is integrated with the home’s main system, not a portable unit. The area must also feature finished walls, ceilings, and flooring, which typically means drywall and materials other than bare concrete. Furthermore, the space must have direct, interior access to the rest of the main dwelling, ensuring it functions as a cohesive part of the home.
A standard garage fails these tests because it is generally considered unfinished utility space. Most garages feature an exposed concrete slab floor and lack the insulation and permanent heating system required for continuous habitation. These structural differences classify the garage as non-living area, which is why it is systematically excluded from the square footage calculation.
The Exception: When a Converted Garage Counts
A garage can be included in the official square footage only if it has been legally converted into habitable space. This conversion requires the space to meet all the criteria applied to the rest of the home’s Gross Living Area (GLA). The concrete floor must be covered with finished flooring, and the walls and ceiling must be insulated and covered with materials like drywall.
The most significant requirement is the installation of a permanent heating and cooling system that connects to the home’s existing climate control infrastructure. Simply creating a recreational room with a portable space heater and area rugs will not qualify the space for inclusion in the GLA. Appraisers will disregard any conversion that does not meet the standards for year-round occupancy.
For the converted area to be recognized officially, the homeowner must have obtained all necessary building permits from the local municipality. Without proper permits and inspections, the converted space is considered unpermitted work and will be excluded from the official square footage used for lending and valuation purposes. This legal documentation confirms the structural integrity and habitability of the new living area.
Square Footage for Appraisals vs. Tax Records
Homeowners often encounter confusion because different entities use varying definitions of a home’s size, leading to conflicting numbers. The square footage listed on a Multiple Listing Service (MLS) sheet is based on the Gross Living Area (GLA) standard. This number is used for valuation because it directly impacts the home’s market price and loan amount.
Conversely, the square footage recorded by the local tax assessor’s office often uses a broader measurement. Tax authorities frequently calculate the “Total Building Area” or “Total Area Under Roof,” which includes all enclosed spaces, regardless of whether they are finished. This broader definition is used to calculate property taxes and often includes the garage, unfinished basements, and sometimes covered porches.
The tax record number is typically higher than the appraisal number, which is the source of the common discrepancy. It is important to understand that the tax record figure is an assessment tool, while the GLA figure is the standard for market valuation. When buying or selling a home, the GLA figure is the one that determines the price per square foot.
The Value of a Garage Beyond the Number
Although a garage does not contribute to the official Gross Living Area, its presence adds value to a property. Appraisers recognize the garage as a desirable amenity and assign a separate, measurable value to it during the valuation process. This value is based on its utility for vehicle storage, workshop space, and general household storage.
A functional garage influences buyer demand and marketability. In many regions, a home with a two-car garage will sell faster and for a higher price than an otherwise identical home without one. The market recognizes the practical benefit of protecting vehicles from weather and providing secure storage space. Therefore, while it may not be counted in the square footage, the garage remains an important feature of the property.