I sell real estate.
But when buying a residential property, the question of “How much real
estate am I buying?” is answered with square footage. Surprisingly, square footage isn’t a hard and
fast measurement. In fact, measurements
can vary depending on the source of the measurement and what is included in the
measurement. And, invariably, if you have three different people measure the
same property, you will have three different measurements.
In our market, most real estate brokers pull the County
Assessor square footage measurement. With new construction, the square footage
measurement comes from the builder. Builders’
measurements, in our market, are usually bigger than the County Assessor’s
measurement. Finally, appraisers often
measure properties when doing an appraisal, and brokers can use this
measurement as the square footage source.
I talked with an appraiser at our local Assessor’s office
and was told that for single family homes and townhomes, the Assessor’s office
looks at the plans for new builds and they physically measure the house. These measurements are from the exterior
walls. With condos, the frame of the
unit is measured and the calculation comes from the interior of the unit. If there is an addition, the Assessor’s
office will do the same as a new build – look at the plans and measure the
space.
So what are you to do if you have concerns about the square
footage of the property you are buying? My first bit of advice is, if the property
works for you, then don’t worry too much about the square footage measurement. If you feel like you are paying a fair price
for the property, enjoy it for years to come. If, however, you are paying a premium for the
property, and the difference in square footage can make a substantial
difference in pricing, you may have concerns that you are overpaying.
First, ask for the source of the square footage
measurement. In Colorado, when a broker
lists the square footage source, we are supposed to have a document backing up
that measurement. I personally have had
sellers tell me that their properties are larger than the measurement I pull
from the Assessor’s office. If they can
provide me with a document in writing – builder’s measurements from plans or an
appraisal -- then I can use that square footage measurement. This disclosure is just that – a disclosure. It is in no way a “guarantee” that the square
footage number is perfect. It is the
closest and best measurement, backed up with a document, that the seller can
produce.
Sometimes discrepancies are caused by what is included in
the measurement. For instance, one
measurement may include the garage, and one may not. Or, in some markets, outdoor square footage
such as patios or enclosed lanais are included in the measurement. Ask
your Realtor to pull comparable properties from the MLS and compare the
measurements to make sure you are comparing apples to apples.
Second, you could hire someone to measure the property for
you to get your own measurement.
Appraisers will do this service.
You can then see whether your measurement is close, or close enough, to
the disclosure to make you feel comfortable.
Remember, that square footage isn’t an exact science so you will likely
not have the exact same measurement as the disclosure.
Finally, if you think there is a huge discrepancy between
the square footage amount disclosed and the square footage you measured, it
might be time to put the brakes on the contract and do more investigation. If you can’t justify the price for the square
footage, then look for a new property.
