Square footage and livability. Sometimes the two have no relevance to each other.

Good points to ponder.  What bothers me about total sq. footage and living space is that some listing agents incldue the basement sq. footage and then in the listing sheet denote the basement as "unfinished." 

Hi Richard, one of the real estate age-old questions and one that has been tested and contested in court. That is why in my area we post the assessor's record on it and disclose that it is up to the buyer to verify. CYA!!

How much square footage is not as important as does the space work for you?  Some people welcome the open spaces and the high ceilings that give an illusion of grandeur and others would rather have workable, livable space instead. 

I understand your frustration with the measurement differentials but, trust me, they are just as complicated for "thinking" appraisers.  (I insert "thinking" in the previous statement because there are too many appraisers who accept what they have been told as if written in stone.)

(Michael) The basis for appraisal measurement is ANSI (American National Standards Institute).  This is the most reliable and defendable source for measurement.  (In today's lawsuit-happy environment, defendable becomes a major criteria for reliance.)  In addition, the Appraisal Institute, which has anointed itself as the single authority on appraisal standards on earth, has also issued guidelines to compliment the application of ANSI.

This brings me to the thoughtfulness of the appraiser where I conflict with some of the guidelines.  Keeping it brief, the definition of below grade according to the Institute is any part of a level which is below the highest grade is not counted as square footage.  Therefor, all those with homes built on hillsides or slopes overlooking water, have little or no square footage by strict interpretation.  Also, a bay window is square footage whereas the portions of a dormer with limited ceiling height (less than 7') is not.

Square footage should be a tool of appraising but should be considered with functionality.  As expressed above, cathedral ceilings, excessive hallways, oversized closets are all functionally limited square footage.  I also know that as noted above, different regions put different emphasis on square footage.

You really are so right. We have a new client who's home is 1,008 sq. ft. which I thought impossibly small. Until I photographed it. It's designed well and felt to me to be at least 1,600 sq. ft. Our last house was 3,600 sq. ft., while our current house is 2,500. I was worried about downsizing, but really it feels pretty much the same. Sure the entry is half the size as is the office and each bedroom is a little smaller, but that's just space that we weren't really using anyway.

Who needs the space if it isn't where you need space?

I've seen floor plans with 1800 sf that felt like 2200 and homes with 3000sf that felt like 2000.  A bad floor plan wastes space and ends up costing buyers money they will never benefit from.  I try to get clients to focus on how much usuable space there is instead of having "more".

There will probably always be some  sort of measuring stick but I also do not think sq footage means much these days. That was probably thrown out back when properties were getting a 25% return after owning it for a month. I think builders use it more closely than on resales. Floor plans are like artist renderings and aren't always accurate. I'm sure any Realtor would notice at the bottom of each floor plan it will say that all information is deemed reliable but not accurate. Just like it say at the bottom of every listing I can pull up.

I just don't know if we can go back to the art of price per actual sq ft....only

Living area ia what most consumers care about versus total area because of the garages,balconies and closets.

I have also come across some people who think it should be sold at price per sq foot so it goes both ways.

Richard... I have conversations with many agents when they include un-finnished footage with finnished.

I always say you need to see it unless it's 100s of square feet smaller than you need.

Well said, Richard.  I've felt like I was in the wrong house a few times because what was recorded in the listing didn't seem to match the house I was in.  It definitely matters how it's measured.  

Sometimes a home may have square footage but in all the wrong places. So buyers have to carefully analyze whether the space really works for them.

Richard:

I only quote the square foot that the assessor's records show for the home. If anyone wants, they can verify the sq. ft., but the assessor records are considered correct.  They do not include unfinished basements and attics or attached garages.  Only living space.

Richard - This is a valid point.  Some homes with so little square footage can seem spacious, and the reverse is true also.

Dear Richard, Good post!  I find it fascinating when I show a property to a buyer who absolutely loves it and is ready to make an offer, until they discover that the square footage is less than what they thought it would be.  Immediately the home becomes too small and we move on.  Even though they "loved" it. 

Richard, excellent points.  For some buyers having a certain square footage is more of a status symbol than any factor in the livability of a home.

I agree Richard, good design is so much more important both in aesthetics and functionality of the home.

I was stunned the other day when visiting the Manassas National Battlefield Park.  Went in to the Stone House, a place that used to be a home/tavern but had been converted to an aid station during the Civil War.  The park ranger quizzed my friend and I as to how many square feet we thought the place was.  I blew it.  It was DOUBLE what I thought, and I'm a pro. The numbers don't mean anything until you see how the home is laid out and the space is used.

Been busy - catching up, but this post hits a nerve.  Our MLS has just recently made sq. ft. a mandatory entry, although 0 can be put in & you get a list of choices as to where you got the information (usually the assessor for me).  I can't understand why buyers, who are in the house looking, ask about square footage.  It either fits their needs for space & floor plan or it doesn't.  I guess it's just curiosity (how big is this house) more than a determinant on whether it's "buy-worthy"' or not.  I know in some areas it has always been an important feature & maybe the Midwest is just starting to catch up, but I personally don't understand what a big deal it is made to be as it depends on the layout of the house.