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That depends if you are a Seller, Buyer, Tenant, Builder, Appraiser, Tax Assessor, Real Estate Agent, Banker and a few other people.

The most reliable but not without error information comes from the local Assessor’s office. The square footage in their reports is often dated to when the building was first constructed. If an owner has expanded the property, not necessarily expanding the footprint, the increase in square footage can be reported to the assessor’s office and the records are then changed. Keep in mind if a property increases in size, the assessor could reassess the value.

An appraiser is usually the person real estate agents rely on most for accuracy to report square footage. The appraiser’s job to establish value often begins with the size of the property and then makes adjustments for improvements, views, location, etc. The per sq. ft. value is then compared with past sales, etc. The key here is an appraiser actually measures the present-day size of the property and gathers information if the property is larger than the assessor’s report. The appraiser will check for permits, etc. that allowed the increase in size. If a room was added, but no permit taken, there is an adjustment made to value, but the room may not necessarily be added to the total square footage.

Buyers look to the cost per square foot when considering purchasing a home and in using a comparison for other properties that have sold. And Sellers do the same in arriving at their asking price. A concern is whether the seller reports the square footage or if an Appraiser reports the square footage. Sellers and appraisers don’t measure in quite the same way.

A builder will look at the size of a vacant lot and determine what size property he can build. His costs are based on per. sq. ft.of improvement costs and using that figure, goes to his banker for financing.

A tenant can be charged on a sq. ft. basis that is the space actually occupied, or rent can be calculated on the space with adjustments to include stairways, elevators, bathrooms, etc. A tenant could also be charged rent if they occupy an entire floor of a property.

It is obvious there are many ways of establishing value. But the important task is to begin with the correct size of the property which will then allow for opinions of value that often have a great financial impact.

"Contingent Free"
Sorry, this doesn’t mean it won’t cost you anything. Probably will cost a whole lot.

What it does mean is the contingencies provided you in a purchase contract have been removed such as:
Financing - meaning you are secure in getting your loan
Appraisal - meaning you are not concerned about meeting the appraised value and
Inspection and Insurance - meaning you have conducted your inspection, approve of the condition of the property and you are able to obtain insurance at reasonable rates.

There are other contingencies like approving of the preliminary title report, lead based paint, natural hazard disclosures, etc., but once you remove the inspection contingency, it is taken you have received the other reports mentioned and you approve of them.

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Diane@DianeVerducci.com | 510-654-1280 ext. 449

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This in not intended as a solicitation if your property is currently listed with another agent. Diane Verducci and The GRUBB Co. believe all information to be reliable, but assumes no legal responsibility for its accuracy.