In the realm of real estate, square footage can be a battleground where advertisements and tax records often tell different stories. While advertisements might exaggerate square footage to attract potential buyers, tax records tend to offer more conservative estimates. This discrepancy can lead to confusion and disputes when buying or selling property. This article, "Square Footage Showdown: Advertisements vs. Tax Records," delves into the intricacies and challenges of this common issue, providing a clearer understanding for prospective buyers, sellers, and real estate enthusiasts alike.

Understanding Square Footage in Advertising:

Advertisements often use square footage as a selling point and therefore tend to inflate the number. This can be done in a variety of ways, such as including non-livable spaces like garages or outdoor patios in the total square footage, or using measurements that are not in line with industry standards. As a result, potential buyers may falsely believe they are getting more space than they actually are.

The Importance of Accurate Square Footage:

Accurate square footage is crucial when buying or selling a property, as it directly impacts the value and price. Overestimating square footage can lead to buyers paying more than the property is worth, while underestimating can result in sellers receiving less than they deserve for their home. It's important for both parties to have a clear understanding of the square footage to ensure fairness and transparency in the transaction.

The Role of Tax Records:

Tax records, on the other hand, provide a more realistic estimate of square footage as they are used for property tax assessments. These records are typically based on actual measurements by licensed professionals and therefore tend to be more accurate. However, tax records may not always reflect recent renovations or additions to a property, so it's important to take this into consideration when comparing them to advertisements.

Square Footage according to Tax Records:

While tax records may offer a more reliable estimate of square footage, they are not without their own limitations. First, they can vary from state to state and even within different counties or municipalities. This is because different jurisdictions may have different methods for measuring and recording square footage. Additionally, tax records only account for livable spaces and do not include non-livable areas such as garages or outdoor patios, which may be included in advertisements.

How square footage is documented in tax records?

Tax records typically measure the gross living area (GLA) of a property, which includes all livable spaces within the main structure. This can include bedrooms, bathrooms, kitchen, living room, etc. However, it does not account for any additions or renovations that may have been made. In some cases, tax records may also include the net living area (NLA), which deducts any non-livable spaces such as staircases, hallways, and storage areas from the GLA.

Factors taken into account in tax records:

• Interior measurements: Tax records typically measure the interior of a property, excluding any exterior walls. This means that the square footage recorded may be slightly smaller than what is advertised.
• Finished vs unfinished areas: Tax records also take into account whether an area is finished or unfinished. For example, a finished basement with livable spaces would be included in the total square footage, while an unfinished basement with only storage areas would not be included.
• Building codes: Tax records must adhere to building codes when measuring and documenting square footage, which may differ from the methods used in advertisements.

Navigating the Square Footage Discrepancy:

When it comes to discrepancies between square footage in advertisements and tax records, it's important for buyers and sellers to do their due diligence. This includes physically measuring the property themselves or hiring a licensed appraiser to accurately determine the square footage. It's also important to communicate openly and clearly with the other party to ensure that both sides have a mutual understanding of the property's square footage.

How to Proceed if There Is a Discrepancy?

If there is a significant difference between the advertised square footage and the tax record, it's important to address it before moving forward with the transaction. This may involve renegotiating the price or conducting a more thorough inspection of the property. It's also important to consider the potential legal implications if false advertising is involved.

Steps to take when there's a discrepancy:

• Verify the advertised square footage: Double check with the seller and ask for documentation or proof of the advertised square footage.
• Obtain a copy of the tax records: Request a copy of the tax records from the local jurisdiction to compare against the advertised square footage.
• Hire an appraiser: If there is still a significant discrepancy, consider hiring a licensed appraiser to accurately determine the square footage of the property.
• Negotiate or reassess: Based on the findings, renegotiate the price or reassess the value of the property.
• Seek legal advice: If there is evidence of false advertising, seek legal advice for potential recourse.

The role of the county assessor:

Buyers or sellers may choose to dispute the square footage discrepancy with the county assessor's office. It's important to note that their role is primarily for tax purposes and they may not have accurate information on recent renovations or additions to a property.

Resolving disputes:

If a dispute over square footage arises, it's best to seek legal advice and potentially bring in a mediator to help come to a resolution. Ultimately, it's important for both parties to have a clear understanding of the property's square footage to avoid any potential conflicts or misunderstandings.

Tips for Buyers and Sellers:

For buyers:

• Don't solely rely on advertised square footage, always request to see the property's tax records.
• Be wary of advertisements that use language like "approximately" or "more or less" when mentioning square footage.

For sellers:

• Make sure to accurately measure and disclose the square footage of your property in all advertising materials.
• Consider hiring a licensed appraiser to determine the true value of your property's square footage.

Legal considerations:

Both buyers and sellers should be aware of any legal implications that may arise from discrepancies in square footage. In some cases, falsely advertising the square footage of a property can lead to lawsuits or penalties. It's important to thoroughly review all documentation and communicate openly with the other party to avoid potential legal issues.

Conclusion:

It's crucial for both buyers and sellers to have a clear understanding of square footage in real estate transactions. Advertisements may exaggerate square footage to attract buyers, but tax records provide a more accurate estimate. In the event of discrepancies, it's important for both parties to communicate and work towards a resolution with the help of their real estate agents. By understanding this common issue, individuals can make more informed decisions when buying or selling property. So, always remember to do your due diligence and consult with professionals when dealing with square footage in real estate.