Understanding Square Footage

Square footage is often treated as though a home has one exact number that every source should report. It does not. Every square-footage figure is an estimate. The appraisal district, builder, architect, seller, MLS, flooring professional, appraiser, and any professional you independently hire may all arrive at different numbers. That should be expected.

Different professionals may use different tools, methods, standards, assumptions, and definitions of what should be included. Even two professionals measuring the same property for the same purpose under the same standard may not arrive at precisely the same number. There is no single, finite square-footage number that another measurement will settle once and for all.

Why Different Professionals May Report Different Numbers

The reason for the measurement matters. A flooring professional is measuring for flooring. An architect may be measuring for design or construction. An appraisal district maintains information for property-tax purposes. An appraiser measures and classifies areas according to the requirements of the appraisal assignment.

These professionals are not necessarily answering the same question or measuring the same areas. An appraiser using a prescribed measurement standard, such as ANSI, is still producing an estimate. A standardized estimate is still an estimate.

There Is No Universal Acceptable Discrepancy

There is no universal acceptable discrepancy range. A difference between two estimates does not automatically mean that one source is right and the other is wrong.

At the same time, calling a number an estimate does not excuse careless measurement, inaccurate records, or misleading reporting. The important question is whether the estimate reasonably reflects the property for the purpose for which it was prepared and whether the difference matters to you.

Most Square-Footage Information Was Not Prepared for You

Most square-footage information you will see during a transaction was not prepared specifically for you. The MLS may repeat a figure from the appraisal district, builder, seller, an earlier appraisal, or another source.

A prior lender-ordered appraisal was prepared for the lender involved in that earlier loan. The appraisal ordered during your purchase is likewise prepared for your lender. Although the appraiser may measure the property and report a square-footage estimate, that appraisal is not a separate square-footage evaluation commissioned for your purchasing purposes.

A Home Inspection Does Not Replace a Square-Footage Evaluation

A home inspection does not fill that gap. A home inspector is not an appraiser, and a standard home inspection is focused on the condition of the property and its systems and components.

You should not assume that your inspector is performing an appraisal-standard square-footage evaluation for you. A typical real estate transaction does not automatically include an independent square-footage evaluation performed specifically for the buyer.

If Square Footage Matters to You, Get Your Own Estimate

If square footage is important to your decision, Realty Texas recommends obtaining your own estimate from a qualified professional who is experienced in the type of measurement you need.

The purpose is not to find a final number that every other source must match. It is to obtain an estimate prepared for you, understand how it was developed, and decide whether the property meets your expectations.

Use Your Option Period Wisely

You should negotiate an option period with the seller that grants you an unrestricted right to terminate the contract and pay the agreed-upon option fee by the deadline stated in your contract.

If square footage is important to you, hire the professional promptly after going under contract and make sure they understand your option-period deadline.

You should have the estimate in hand while you still have time to decide whether to move forward, attempt to renegotiate with the seller, or exercise your right to terminate before the option period expires.

Do Not Wait for the Lender’s Appraisal

If you are obtaining a loan, your lender will likely require an appraisal, and you will typically pay the appraisal fee as part of the transaction. The appraiser is engaged for the lender’s purposes, primarily to help determine whether the property is sufficient collateral for the loan.

The appraiser may measure the home and report a square-footage estimate, but that estimate is still only an estimate and is not being prepared specifically for you as the buyer.

The appraisal is usually completed later in the transaction, often after the option period has expired and after many of the buyer’s contractual protections have already been satisfied or waived. By that point, the buyer may have little or no practical ability to exit the transaction simply because the appraiser reports a square-footage estimate that is lower than expected.

For that reason, if square footage is important to your decision, do not wait for the lender’s appraisal to address it. Independently evaluate the property’s square footage during your option period and make your decision while you still have the contractual right to act.

When the lender’s appraisal later arrives, its square-footage figure should be understood for what it is: another professional estimate, prepared for another purpose, by a professional who was not engaged to provide that number for you.

The Realty Texas Approach

At Realty Texas, our goal is for you to approach square footage with understanding rather than assumption. Expect the numbers to differ. Understand who prepared each estimate, why it was prepared, and what method was used.

If square footage matters to you, obtain your own professional estimate during your option period while you still have the opportunity to use that information in your decision.

The goal is not to find a number everyone must agree with. The goal is to have information prepared for you, at the right time, so you can make an informed decision about the property.