✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.
Yes! Nearly 15% of real estate contracts fail because of defaults like wrong square footage. Moreover, listing wrong values during appraisal is a violation of MLS rules, which can attract fines of up to $200- $1500.
Listing a home with the wrong square footage can also mislead buyers. Consequently, it can break buyers’ trust and impact your home value.
You can ensure the accurate value of your paperwork with Houzeo. Its professional services of home inspection and appraisers will help you throughout the process. You can get all of this just for a flat fee with Houzeo’s Gold plan.
How to Determine if the Square Footage Is Inaccurate?
The right square footage helps you calculate how much is your home worth. To determine if your square footage is correct, you should:
- Check Your County Assessor’s Website: Review your property deed and look for the original building plans or blueprints.
- Hire a Licensed Surveyor: They can help you with accurate measurements of your home by mapping the exact layout and dimensions.
- Review Previous Appraisals: You should review your home appraisal and home inspection reports. Differences in these reports and your listing values could lead to errors.
How to Calculate Square Footage for Your Real Estate Listing?
Many MLSs have regularized the method to measure the square footage of your house. You can also do it yourself using a measuring tape and a calculator.
To calculate square footage, you need to measure the length and width of each room. Then multiply these dimensions to get the area (length x width).
For instance, the living area must include heated, finished, and accessible spaces. The area also includes attics, closets, and stairs. Sum the square footage of each area to get the total square footage of the room. Likewise, you can do it for your whole property.
» How to Calculate Square Feet in 3 Easy Steps? Quickly find your home’s square footage in three easy steps.
Who Is Responsible for Verifying Square Footage in a Home?
Measuring the square footage is a crucial step before selling your home. The responsibility doesn’t fall on one person, it is shared among several parties such as:
- Seller/Homeowner: Update your recent values to avoid a square footage discrepancy lawsuit.
- Listing Agent: The agent must verify the square footage. This will help you set fair market prices and build trust with potential buyers.
- Appraisers: Verified reports of square footage by appraisers benefit both buyers and vendors to determine fair property value.
- Buyers: Buyers must be proactive in comparing listed square footage with public records. They are allowed to ask sellers to double-check the measurement if doubts arise.
- Tax Assessor: A tax assessor must also maintain property records to reflect the square footage of your property.
- Surveyors: Licensed surveyors can provide accurate measurements for properties with complex layouts.
Documents Required to Prove Accurate Square Footage
Your listing agent may ask you for documentation to verify square footage calculations. Submit the following documents before listing your property:
- A recent appraisal report
- Updated county records
- Floor plans of your house
- Blueprints or building plans (if the house is newly built and never lived in).
4 Common Reasons for Wrong Square Footage
A real estate agent usually relies on the MLS data of tax records for square footage reports. At times, this number could deviate from the data you provide to the agent.
Here are some of the most common reasons why your data and the tax record data could be different:
1. Tax Records Are Not Updated
Any changes in tax records may take time to reflect on online portals.
If you have recently made any changes or additions to your home, the tax records will not reflect those. Apply to the county assessor’s website and add these changes to your records.
Check with the county assessor if the new square footage information is outdated. If it is, inform them and ask them for a new assessment. This will allow for a new assessment.
2. Renovations Made Without Appropriate Permits
Renovations or additions like a patio or attached porch, may require permits in your county. It enables the county assessor to change the property’s square footage in their records.
These changes can potentially cause problems in your home’s value and square footage.
3. Information in MLS Tax Records Differ From County Assessor’s Tax Records
The county assessor’s data might not match with the tax data on the MLS. In such cases, you can obtain updated documents from the county assessor’s online portal.
4. Outdated Appraisal
A fresh home appraisal will serve as proof of recent square footage data. Get a new appraisal before listing your home. It would avoid potential issues if the sizes of the measured areas are different.
Why Is Right Square Footage Important?
Right square footage directly impacts your home’s worth, tax records, and listing prices. Wrong square footage can cause you fines, tax penalties, and lawsuits.
Almost 95% of home buyers search and review homes online. Buyers trust the details you provide in the listing. False advertising of square footage can lower your home value. Additionally, wrong measurements can lead to fines from the MLS ranging from $200 to $1,500.
You can avoid such penalties and get the buyer’s trust in your property with accurate value. Flat Fee MLS services like Houzeo’s can help you get all the paperwork and measurements accurate.
5 Easy Steps to List on MLS
Check out the following video to understand how to list your house on Houzeo and save on commissions.
How to List on MLS With Houzeo?
5 Easy Steps to List on MLS with Houzeo as FSBO
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why it is one of the best FSBO sites in America.
Frequently Asked Questions
How do I find the square footage of my house?
To calculate your home's square footage, you can hire a full-service agent or professional appraisers. You can also calculate square footage in 3 simple steps with MLS square footage guidelines.
Who is responsible for verifying square footage in a home?
The responsibility of verifying square footage doesn't fall on one person, it is shared among several parties such as; seller, seller's agent, tax assessor, appraiser, buyer and a surveyor.
How to find your house square footage online?
You can find the square footage information on the county assessor's web portal. Past appraisals might also be an online option.
Are property taxes based on square footage?
Square footage can impact the tax assessment values for your house. The bigger the house, the larger the assessment.
