Square footage by seller

Kerry, we either use CAD square footages or previous appraisals.  I did have a deal almost fall through from a discrepancy of 27 square foot.  The CAD stated the square footage as being 1615, and the appraisal showed it as being 27 square foot smaller.  The buyer got very agitated and stated that since he thought the house was larger he should be getting a lower price.  The interesting thing is, we had the price per square foot at $77, and the 27 square foot would be over $2000 worth of house.  Fortunately the appraisal came in at $2000 over sales price, but he still wasn't happy.  I had to convince him that at that point the seller could sue for non-specific performance if they wanted to.

In my area an agent is expected to "take steps to discover facts about a property which a prudent agent would take to market a property (or something to that effect)."  The regulators expect agents to know how to measure a home.  It's not rocket science, but rather, pretty basic math. A "misrepresentation" in quoted square feet because an agent chose to use public sources or a sellers representation would result in sanctions.  They'd say, "You are the professional."  I use those other sources as a basis of comparison.  If there's any substantial discrepancy, I measure again.

Everyone seems to always have a different method of measuring square footage.  I know it is a specific number with simple calculations.  I've realized some Realtors count closets, decks, hallways, stairs, etc.  Typically what does everyone count into their calculations.  I often find sellers and other Realtors all will try to calculate the sf of a property, and all will receive a different result. 

I always measure first then cross ref with public info, or previous listings of the home.  Luckily here in Illinois, the sf field in our MLS is written as "ASF (Approx Square Footage)". 

Is there a general rule of thumb others follow?

If there is some "association of Appraisers" in the US they probably have guidelines which their members use.  It's probably a safe route to follow those.  I use the exterior of the foundation for a main floor and my best effort to eyeball second levels. A lawyer I spoke with said there are no successful litigations for minor discrepancies in the 2-3% range.

There was a case.  Back in early 1994, I read a case where a buyer sued and won a case against a real estate agent because the house was 100 square feet less than listed in the MLS.  The buyer, of course, was an attorney. 

After reading that case in our State Realtor newsletter where they notice us of real estate litigation, I have NEVER since listed square feet in a listing, let buyers take their own measurements and took out a $1,000,000 liability policy shortly thereafter. 

Another case was a successful case against a Realtor when the buyer fell off a back porch and broke an ankle.  The JUDGE SAID that when an agent shows a home, they are in the shoes of the owner and responsible for the safety of the buyer walking through. 

This is also why so many new home sites have a "hard hat" period when buyers aren't permitted to walk through alone. 

It doesn't pay to take risks with information or safety.

 

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