Why Did Baton Rouge Real Estate Agent Improperly Classify Sunroom as Living Area?
NOTE: For privacy purposes, multiple photos are not included in this article.
NOTE: Also, this is being written for the Greater Baton Rouge housing market where it's a GBRAR MLS requirement that Agents and Appraisers attend a 1 day training on how homes are properly measured and on what GBRMLS classifies living area to be. This class is mandatory for access to GBRMLS, is taught by an Appraiser and the Agents physically measure the GBRAR Office Building, which is similar to a large home. This is not being written to Agents that live in other States that don't require physical measurement of homes for listings.
NOTE The Sunroom has the old exterior siding, the exterior electrical socket gray plate and unattractive scratched up concrete floor.
In 2006 and during a Post Hurricane Katrina high priced market, the owner bought this home via an GBRMLS Listing showing 2,533sf. My 2013 measurement for a refinance appraisal showed 2,366sf living area, a difference of 167sf. There is a Sunroom I measured at 134sf, which I didn't include as Living Area. The Sunroom used to be a porch and still has the old wood "exterior" siding on all 4 walls inside the Sunroom and does have 1 central heat/air vent. While the slab was raised to meet original slab in the living area section, the flooring is just sealed regular concrete and quite unattractive. This room wasn't insulated well, was warm and smelled like a wet dog (somewhat foul). When you compare the overall quality of Sunroom to the Living Room, there's no remote similarity in quality. Now, the owner/borrower is upset with me for not classifying Sunroom as "Living Area" and upset with the 2006 GBRAR Listing Agent for calling it Living Area when it was not. The buyer / borrower in 2006 thought they were buying 2,533sf living area based on the "professional representation" of the Agent Listing. The Agent Commission was in the $18,000 range and for $18K, the living area should be accurate. I don't know whether the purchase appraisal from 2006 classified the Sun Room as living area or not.
I also recently appraised a home where a Major Regional Lender made this borrower add flooring to bare sealed concrete floor. Even Lenders don't consider sealed non-stained (dressed up) concrete floor to be acceptable or living area quality standard.
LESSON #1: There is no gray area here in terms of what is technically Living Area and what is not. If the quality of construction of the Sun Room doesn't completely match the quality of the elaborate existing living area, then the Sun Room is not living area. The Sun Room is an additional amenity and does add some value, but not at the same $127/sf that homes sell for in this subdivision.
LESSON #2: For 6% Commission Fee for "Professional Representation of your Greater Baton Rouge Home, or an $18,000 selling fee in this case, expect your home to be properly measured for the listing based on the National ANSI Standards. Accept no less of your Agent. Also ask for a copy of the Sketch of your home showing the verified living area before signing the listing agreement. Why, because in Baton Rouge, the average home sells for approximately $114/sf and if your living is off by 100sf, you could be losing $11,400 for every 100sf of error.
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