When purchasing a house, it’s essential to check the advertised house size against the figures listed in the Multiple Listing Service (MLS) and tax records. You should identify any differences and find out the reason for any variations.
The MLS gets its data from the official square footage recorded by the county assessor’s office. They often assess properties at their highest value annually to maximize tax revenue. In economic downturns, they may keep these values high.
If you own a property, you’d ideally want the official records to show a smaller square footage. I learned the hard way not to update property details with the city after a renovation, as it resulted in higher taxes.
On the flip side, sellers might want to have a larger square footage recorded to boost the property’s selling price. Thus, if selling is on the horizon, they might approach the assessor’s office with the correct, increased figures.
Sellers might sometimes exaggerate the actual living space in promotional materials, followed by a disclaimer urging buyers to check the square footage themselves. So, buyers, be cautious.
In this article, we’ll discuss:
- Reasons for discrepancies in house size.
- How to ascertain a house’s actual size.
- Defining livable space for real estate listings.
Over my many years of attending open houses, I’ve frequently noticed differences between the advertised size and the assessor’s report. Most often, the advertised size is inflated.
Common reasons for these inconsistencies include:
- Outdated tax records: If there hasn’t been a recent sale or a permitted renovation, the tax records might not reflect the current state of the house. Updates can also lag on online platforms. In places like San Francisco, updates can take up to five years.
- Unrecorded renovations: Homeowners might skip permits to save money and time, and avoid higher taxes. Some cities have rigorous inspection standards, making renovations a challenging process. I’ve experienced this complexity first-hand but have always felt reassured knowing the work met the standards. It’s also a selling point for potential future buyers.
With time, homeowners might undertake unrecorded renovations. If the marketed size of a property exceeds that on tax records, ask about any such work and consider its worth.
- Long gaps since the last appraisal: An appraiser ensures a house’s value, especially if no recent appraisal is available. Appraisals help both sellers, by validating their claims, and buyers, by confirming they’re making a fair offer.
- Discrepancies between MLS and county assessor records: The MLS might not always match the county assessor’s latest records. Buyers should rely on independent appraisals and not just online data.
Why It’s Vital to Get Square Footage Right:
- Square footage influences buying decisions: A missing square footage on a listing can be a red flag, possibly indicating a lower figure on official records. This tactic, much like omitting average grades or test scores, can backfire.
- Accurate figures enhance seller credibility: Just as with cars, buyers prefer houses with complete records. Any discrepancies can erode trust, and sellers risk losing potential sales.
- Misrepresentations can lead to legal issues: Incorrect listings can result in MLS fines or even legal action. Buyers should exercise due diligence and verify all claims.
Proof of Accurate Square Footage: Protect yourself as a seller by having documentation that verifies your property’s size. Essential documents include a recent appraisal report, updated county records, floor plans, and blueprints for newly built properties.
Defining Livable Space: All square footage isn’t created equal; you’re looking for livable space. The MLS usually categorizes this as a ‘living area.’ It should be heated, finished, and accessible from other living spaces. Areas like attics and closets are included if they’re functional.
Measuring Your Home’s Square Footage: If you’re keen to measure your house’s size, start with the exterior walls, draft a floor plan, and measure any inaccessible interior spaces. When unsure, consider hiring a professional for an accurate measurement.
Understanding “Above-Grade” and “Below-Grade” Areas: “Above-grade” refers to spaces not adjacent to the earth, like upper stories. Conversely, “below-grade” denotes rooms adjacent to the earth, like basements. For homes on slopes, this might vary.
Real estate agents, given their commissions, should be willing to measure houses for clients. If not, consider hiring an appraiser. Personal measurements, no matter how meticulous, aren’t official, so the documents mentioned earlier are crucial.
For buyers, never take promotional materials at face value. Thorough inspections are a must. A miscalculation in square footage could result in significant financial losses.
In conclusion, the accuracy of square footage is of paramount importance when buying a home.
