Above grade

The parts of the house at or above ground level. Above-grade space counts toward gross living area for most appraisals.

Property condition · Updated September 2026

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Part 1 of 4

Why a seller cares

Above-grade square footage is the number that goes on the listing and in the appraisal, and finished basement space usually does not count toward it. A home advertised with the basement included can appraise smaller than it was sold as.

Part 2 of 4

A simple example

Your home has 1,600 square feet upstairs and a finished 800-square-foot basement. The listing says 1,600, and the basement is described separately.

Above grade: a simple example
The spaceHow it is counted
1,600 square feet on the main floorsAbove grade; it is the gross living area
800 finished square feet in the basementBelow grade; listed separately, valued lower per foot
A listing that says 2,400Likely to be corrected by the appraiser, and by buyers' agents

Above grade is the square footage that counts. The basement is a bonus, not part of the number.

Part 3 of 4

What people get wrong

That finished space is finished space. Appraisers value a basement foot at a fraction of a main-floor one.

Part 4 of 4 · where to read next

Where it appears in the sale

What a definition is, and what it isn't

Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.

Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish

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