Get a ruler to measure the square footage!
A very recent change to our MLS Listings in the DC metro area: Square Footage is now displayed as a matter of course. This is a big change for many agents who were reluctant to put square footage into the MLS for fear of making a mistake and having to “give” a few extra feet as a house warming gift if the square footage was overstated. Who wants to run that risk?
Unfortunately, since it is in fact impossible to “give” a few extra feet at settlement, buyers have sued either the seller or the realtors because the listing agent overstated the square footage.
With the new change, the MLS “pulls” the square footage data directly from the tax records and displays it in the MLS listing. Unfortunately the square footage reported in the tax records is not guaranteed to be accurate either. Frequently, that new addition is not included in the reported square footage. How do you know if the finished basement is included. What about the garage? The tax record may be wrong too.
Since there is no guarantee that the tax record will be correct, if you are thinking of selling – you should make sure the tax record has the correct size. Now that the tax record square footage is included in all multiple listings, it may become a filter item that buyers use to search for properties. A buyer could eliminate your property if the tax record is wrong and the reported size is not what they are looking for.
Buyers and their agents sometimes calculate price per square foot when comparing homes as a method to estimate their value. It seems to be an easy number to calculate and certainly is an easy concept to grasp. But how reliable is the number when valuing a single, unique property? Since the space in the home included in the square footage reported by the tax record may be wildly different from one house to the other, it is not a perfect method of analysis. You need to question the accuracy of the data being presented, account for the uniqueness in each piece of real estate, and be sure that you are comparing very similar properties in the process. Looking at an average price per square foot for a neighborhood and then multiplying for the home you are looking at is likely NOT a reliable way to figure its true market value.
If you are thinking of buying or selling a home in this market, you definately want an experienced agent who will guide you through changes like this one. Please give Lise Howe a call if you have any real estate questions.
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I, purchased a home though a realtor. When, I decided to sell the house the new realtor that was going to list the house discovered the square footage was off 456 sq feet. The listing agent previously disclosed on the multiple listing the wrong information. This is almost 1/3 the total square footage of the house. I, went to the listing agent, about the situation. So, far nothing has been done about compensating me. The agent told me since I signed the due deligence, I was responsible the same as the listing agent. Is, there anyone out there experienced a similar situation? I, desperatley need help..