What would you do if the square footage was off by over 700 sq feet?

By
Real Estate Broker/Owner with RE/MAX Legacy

This spring one my clients made an offer on a home.   When the appraisal came back the square footage was off by over 700 sq feet (it was a 5500 sq foot home).    When I talked with the agent there response was we don't measure - I just went by what the previous agent had listed.     However, the agent was wise and put in the counter "Purchaser is buying the home based upon value not based upon square footage."   Yes - I know this should have been a red flag - but in general I agree (it is very rare to get exact numbers back from anyone who measures) - so I was just thinking they were trying to cover themselves to within a reasonable tolerance.     I have started adding a clause that home must be within x% of stated square footage based upon appraisal.    Has anyone else had similar stories and better ways to handle it?

Comments (6)

Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

I saw some inconsistencies on a large custom home. We had the architural drawings, with one set of numbers. The public records which was different, and then the number the appraiser came up with which was different yet again. The house itself had very thick walls and lots of twists and turns in its styling.  A gentlemen at the county records office told me that due to staff shortages, it wasn't unusual to take aerial photos of homes built at the time this one was, and do a calculation off that.  Obviously, that would come up larger, as it may show roof overhangs. Which do you go by?

Aug 13, 2010 02:35 AM
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Lawsuits fly all the time over sqft issues. Many larger homes are extremely hard to measure with two story open spaces, dormers, bay windows, etc. Listing agents should consult their MLS rules and their local board for language that protects them from liability in case of discrepancies.

Aug 13, 2010 02:44 AM
Ed Hazell
Remax Realty Services Inc. - Brampton, ON

Repeating measurements from someone else without check leaves us a risk.  I am seeing more and more listings stating "Buyer to verify measurements". I am not sure if that relieves our responsibility, but it certainly, sends up the warning balloons.

Aug 13, 2010 03:12 AM
Doug Rogers
Bayou Properties - Alexandria, LA
Your Alexandria Louisiana Agent

There is language in our state buy sell agreement that states " buyer is responsible for verifying measurements during the inspection period". I doubt this would offer complete lawsuit protection though.

Aug 13, 2010 04:37 AM
Anonymous
Hamp Thomas

We hear this all the time. I'm sending you a book titled Realtors and Square Footage which has some interesting info on lawsuits and square footage. 700 is not as uncommon as you might think. Scary! Anyway, hope you enjoy the book. 

Aug 15, 2010 09:24 AM
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