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Thank Goodness Georgia Doesn't Allow Stating Square Feet

By
Real Estate Agent with Atlanta Communities Real Estate Brokerage GREC #208281

 One of the most often asked question I get is "How many square feet does this home have?" The second most often asked question, especially from Californians, is "Why doesn't Georgia allow the square footage to be stated?"

While doing a CMA for a buyer today I experienced a big reason for sticking to such a "backwards" rule.  I pulled up the tax records for 5 homes in the same subdivision that had the exact same floor-plan.  The tax records usually state the square footage and some people make decisions based on these figures.  But how accurate are these numbers?  Here is the variability for the same floor-plan: 2572, 1867, 2298, 2269, 2090.  Which one is correct? This is from a single taxing authority that hopefully uses some standard practices.  What if you also had varying opinions on exactly how to measure square feet?

In Georgia, what you see is what you get.  Sometimes size isn't as important as what you do with the size that you have.  So use the tax information with a little skepticism. It also shows why one might not want to put too much weight on anything based on the tax records, ie. Zillow's Zestimates. 

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About the Author:  Tim Maitski has been a full time Realtor since 1999. He has sold several hundreds of homes in areas around metro Atlanta.  Tim started with RE/MAX Greater Atlanta and is now with Atlanta Communities Real Estate Brokerage.

 

Along with blogging on ActiveRain, he provides one of the best real estate websites in Atlanta at www.HomeAtlanta.com .

 

His proprietary  "Maitski Line Reports" chart out the absorption rates over the past 14 years in 37 different market areas.  Know when it's a good time to buy or a good time to sell.    

 

His online Property Tax Calculator allows you to compare property taxes in many counties and cities around the Atlanta area.  He provides the Atlanta MLS Power Search Tool that allows searches of homes using over 35 specific criteria.

 

Over the years, Tim has optimized his business so that he now can offer a huge 50% commission rebate to his buyers.  The more experience one gets, the easier the job becomes.

 

Tim also has a "Five Days to Sold" System that uses an intensive marketing blitz to create a showing frenzy that creates urgency and offers.

 

Tim is always looking to LinkIn with anyone who is interested in building their social network.

 

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Rich Jacobson
Fathom Realty West Sound - Poulsbo, WA
Your Kitsap County WA Real Estate Broker
I guess we're just fortunate here that the County does a fairly accurate job of determining approx. square footage! Still, we have some agents that just refuse to put any value in the sq. ft. box.
Jan 31, 2007 03:24 PM
David Gibbons
Zillow.com - Seattle, WA

Hi Tim, it's David from Zillow.

You are right in that public records are incorrect more often than many people think -- it's an edge-case but it's a common one.

Where I disagree with you is in your suggestion that that is good reason to step backwards, remove transparency and not publicize this information. Surely transparency + accuracy should be our goal?

If buyers have to physically inspect EVERY property for sale in an area, that makes for a very inefficient house search. That inefficiency will translate to a reduction in interest by investors and other buyers who can trade more efficiently elsewhere. Their lack of interest results in a knock-on reduction in the liquidity of the local market -- and a lack of liquidity will ultimately destroy value. 

Sorry to get on a soap-box here but with so much to gain through transparency and liquidity, I'm surprised I don't read more people calling for an improvement in accuracy. 

Feb 01, 2007 06:06 AM
Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
Truth, Excellence and a Good Deal

David, I'm all for transparency.  But I think if you are going to quote square feet that people are going to base financial decisions on, you need to do at least do two things.

  • State what the standard error range is.  People are mislead about accuracy when a number like 2269 square feet is stated. 
  • State the standards you used to caluculate it.  I know there are several methods that are used to determine square feet.  How can you compare two numbers if you aren't certain which method is used.

Until these things are required, I think it best to rely on these numbers with great suspect. 

 

Feb 01, 2007 08:54 AM
Robert Hammerstein -
Christie's International Real Estate - Hillsdale, NJ
Bergen County NJ Real Estate

Hey Tim,

 

We don't list the square footage here in our area for much the same reason.  What we do for our customers is to carry a measuring tool that we can pull out when showing a home.  If there is a question on the room sizes, we're happy to measure for them.  This usually is what they are looking for anyway. 

 

Lisa

Feb 08, 2007 10:32 AM
Anonymous
gary

First, would someone PLEASE show me the law in writing that says a realtor can't quote the square footage? Because after looking for a home for 3 months now, every day, I've seen plenty of realtors quote the sf in their listings.  Please provide a link from an official Georgia legal site that backs that up.

Secondly, I believe realtors don't want to quote the sf, so they can sell you on the house's "cuteness". How in the world can a realtor sell a house with 1500 sf for $500k when next door a similar one has 2000 sf for the same price?  That's why the realtors have an unwritten code of not telling the sf.

 Builders build and price their homes based on the cost per square foot. plain and simple. That's the way I've bought and sold 20+ properties and it's never failed me.

Sep 12, 2007 03:31 AM
#5
Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
Truth, Excellence and a Good Deal

Gary,

It is not the law of Georgia but the regulations of the FMLS and other listing services.  It is also the recommendation of the Georgia real estate commission.  The sad thing about America today is everyone is so litigious.  Misquote the square feet and they'll sue you.  Someone in the past has been sued so that's why they recommend not quoting it.

Here's the FMLS rule.

10.3 The FMLS computer system shall not disclose any reference to total square footage of a listed property except for references to approximate square footage for Commercial property.

Here's what the Georgia real estate commission says.

How do you determine the square footage of a house? Do you measure from interior wall to exterior wall? Do you include finished space, the carport or garage, heated space only? Do you measure the property yourself, rely on MLS data, rely on architectural plans rely on county tax records?

The answer to each of these questions is "it depends." For example, appraisers usually base square footage for appraisal purposes on exterior walls. Purchasers seeking to accommodate their furniture needs will base square footage on the interior walls.

Perhaps the best policy for real estate licensees is not to attempt to calculate square footage. If a customer raises the issue, the licensee should allow the customer to make his or her own calculations. If the licensee gives the customer square footage data from the MLS, architectural plans, or other sources, the licensee should carefully disclose that he or she cannot verify the accuracy of that data.

Maybe if there was a law that prohibited people from sueing agents for incorrect measurements, maybe it would be safe to give out some numbers.  If you are buying a home and size is important, bring your tape measure and measure away.  Or maybe if there was some standard protocol in how measurements are taken, maybe the numbers would mean something.  You have to make sure you are comparing apples with apples.  

Maybe they could have a company that would certify how big a home is.  Other areas quote square feet.  I just wonder if everyone is playing from the same gamebook.

 

Sep 12, 2007 04:30 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA
Welcome back!  Your posts were missed!  Great post, and I totally agree with you on not having square footage on our listings!
Sep 13, 2007 02:34 AM