Why Is the Square Footage in Public Records Different from the Appraisal?

Square Footage: Why Accuracy Matters

Square footage is one of the most critical factors in determining a home’s value, yet it is often misunderstood. Many homeowners and real estate agents assume that the square footage listed in public records is accurate, but that’s not always the case. When an appraiser measures a home, their calculation often differs from what’s in tax records. These discrepancies can lead to confusion, mispricing, and even appraisal challenges.

So why do these differences occur? And what can homeowners and agents do to ensure they have accurate information when pricing a home? Today I thought I would discuss the main reasons behind square footage discrepancies and their impact on real estate transactions.

Why Square Footage Discrepancies Occur

Public Records vs. Appraisal Measurements

The square footage listed in public records typically comes from the county tax assessor’s office. Assessors determine square footage based on:

• Builder-reported figures: When a home is constructed, builders may report square footage for tax purposes, but these figures can change if plans are modified.
• Estimates or outdated records: In many cases, tax assessors rely on older measurements, which may not reflect additions or modifications to the home.
• Mass appraisal techniques: Since assessors handle thousands of properties, they often use general guidelines rather than physically measuring each home.

On the other hand, appraisers physically measure the home, typically using ANSI (American National Standards Institute) standards, which ensure consistency and accuracy. This hands-on approach often reveals differences between the appraiser’s measurement and what’s in public records.

Conversions and Additions

Another common reason for discrepancies is home modifications. If a homeowner adds square footage without the proper permits, tax records may not reflect the change. Examples include:

• Unpermitted additions: A finished attic or basement, enclosed porch, or converted garage may not be included in public records.
• Incorrect classifications: A space that doesn’t meet legal requirements for a finished living area (e.g., ceiling height below normal, lack of heating and cooling) may be excluded by the appraiser but counted in tax records.

Different Measurement Standards

Not all measurement standards are the same. Appraisers follow strict guidelines that may differ from those used by tax assessors, builders, or even real estate agents. Common differences include:

• Above-grade vs. below-grade square footage: Appraisers separate above-grade living areas from basements, even if the basement is finished.
• Usable vs. total space: Tax records might include unheated areas like screened porches or garages, while appraisers focus on heated and cooled living space.
• Rounding and methodology: Different calculation techniques can lead to slight variations in total square footage.

The Impact of Square Footage Discrepancies

Home Pricing

For real estate agents, accurate square footage is crucial when conducting a Comparative Market Analysis (CMA). If an agent relies on incorrect tax records, they may overprice or underprice the home, leading to:

• Overpricing: If the home’s actual square footage is smaller than reported, buyers may not see the value, leading to fewer offers and a longer time on the market.
• Underpricing: If the home is larger than tax records suggest, the seller may leave money on the table by accepting a lower offer.

Appraisal Challenges

When an appraisal reports a different square footage than what was used in the listing, it can create problems during the lending process. Lenders rely on appraisals to ensure they aren’t over-lending on a property, and a discrepancy can result in:

• A lower appraised value: If the appraiser’s measurements show that the home is smaller than the listing suggests, the appraised value may be lower than the contract price.
• Renegotiation or contract issues: A low appraisal may require price negotiations, additional buyer funds, or in some cases, cause the deal to fall apart.

Buyer and Seller Expectations

Buyers expect the square footage in the listing to be accurate. If they later discover discrepancies, it can lead to:

• Distrust in the transaction: Buyers may feel misled if the home is smaller than advertised.
• Legal disputes: In extreme cases, misrepresentation of square footage can result in lawsuits.

How to Ensure Accurate Square Footage

Getting a Professional Home Measurement

One of the best ways to avoid square footage errors is to hire a professional appraiser for a home measurement service. This is especially important when:

• Listing a home for sale.
• Pricing a home using a CMA.
• Disputing property tax assessments.
• Refinancing a mortgage.

An appraiser’s measurement ensures that buyers, sellers, and lenders are working with accurate data, reducing the chance of surprises in the future.

Checking Public Records

Homeowners and agents can verify tax records by:

• Checking online county property records for any discrepancies.
• Contacting the tax assessor’s office to correct outdated or incorrect information.
• Comparing the tax record’s square footage with an appraiser’s measurement.

Best Practices for Real Estate Agents

Agents can protect themselves and their clients by:

• Using accurate data in CMAs: Verify square footage with professional measurements when possible.
• Clearly stating measurement sources in listings: If using public records, note that square footage is based on assessor data, which may not be exact.
• Educating buyers and sellers: Help clients understand how square footage is measured and how it impacts home value.

Conclusion

Square footage discrepancies are common, but they don’t have to cause confusion or kill a deal. By understanding the reasons behind these differences, homeowners and agents can take proactive steps to ensure they have accurate information.

If you’re preparing to sell a home or need to verify a property’s square footage, I would be glad to help you with an accurate measurement. Having the right numbers upfront can save time, prevent disputes, and ensure a smoother transaction.

If you have any questions or need a home measurement don’t hesitate to contact me and as always, thanks for reading.

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