By Michael Vervena
Until now, it’s been common for real estate agents to rely on past MLS listings, public tax records, and other third-party information when including square footage in a listing. But advancements in technology, a skeptical buyer’s market, and growing demand for complete transparency are making these old sources suspect — and for good reason. Square footage numbers are used to calculate a listing’s price-per-square foot, a factor many buyers consider in their decision. Getting those numbers wrong can lead to a loss of trust, suggests a lack of professionalism by the agent, and in the worst cases, may even lead to lawsuits or recission of an offer. Real estate agents need to understand the pitfalls of relying on third-party information for such a critical piece of information.
Five Common Mistakes Made in Listing Square Footage
1. Relying on prior MLS listings
Making an assumption that the square footage is the same as a previous MLS listing ignores changes to the property that may have been made without a permit. It also assumes the measurements in the old MLS listing were accurate to begin with. Even properties on the market recently can still have errors in square footage for some of the reasons outlined below.
2. Relying on tax assessment records
Just like with MLS listings, there is often a presumption that any property changes were completed with the required permits and accurately reflected in tax assessment records. However, modifications that are not visible from the outside — such as finishing a basement, enclosing a porch, or converting a garage — can significantly alter interior square footage without triggering updated assessments.
3. Equating square footage with a home’s footprint
The square footage of a property differs from its footprint. Typically, appraisers calculate a home’s value using the home’s gross living area, a measurement taken from outside the home for single-family detached dwellings. But outside measurements don’t account for vaulted ceilings with no floor space on the second floor, odd-shaped rooms, low-sloped roofs, and other features. A home’s gross living area is often what’s reported in public records; another reason not to rely on public records for square footage measurements.
4. Differences in local regulations
Different localities have different rules and standards for calculating the square footage of a home. Some jurisdictions may not count finished basements in total square footage, while others might if they meet certain standards (like ceiling height and egress).
The American National Standards Institute (ANSI) provides guidelines for measuring square footage in residential properties. As of 2022, Fannie Mae requires appraisers to use ANSI standards for single-family homes. But not all municipalities or agents follow ANSI, especially in private sales.
5. Measurement errors
Mistakes happen when square footage measurements are done manually. It can be challenging to measure odd-shaped rooms, especially when doing it solo. Adding up every room’s unique dimensions requires careful documentation and, ideally, confirmation. Even the most well-intentioned, conscientious real estate agent can make a mistake that makes it into the listing, resulting in incorrect square footage.
Three Steps to Ensure Accurate Measurements and a Better Client Experience
The good news for real estate agents is these common mistakes can be avoided with three proven strategies.
1. Measure your listing’s square footage every time
This is the basis of professionalism. Don’t rely on old listings, third-party information or public records. Learn what your local regulations require in terms of what counts as square footage. Then measure the space with those regulations as the basis for your calculation.
2. Use LiDAR technology, not manual measurements, for the most accurate, defensible documentation
LiDAR (Light Detection and Ranging) technology is increasingly used to measure square footage because it offers fast, highly accurate spatial data using laser-based distance measurement. Laser pulses are emitted from a LiDAR device, which measures the time it takes for each laser to bounce back from surfaces like walls, floors, and ceilings. The advantages of LiDAR technology include:
- High accuracy (for example, typical measurement uncertainty of 1% or better for square footage calculations with iGUIDE)
- Quick scans — A full house can often be scanned in under 15 minutes
- Non-invasive — No need to move furniture or manually measure
- Includes odd shapes and curves more easily than a tape measure or laser rangefinder
3. Supplement digital measurements with floor plans and virtual tours so prospective buyers can visualize the space
Even the most accurate square footage measurements won’t help a prospective buyer visualize a space without being there. However, agents can now offer clients and prospective buyers an immersive 3D virtual tour of the entire home.
Property capture technology, such as what we utilize at Nashua Video Tours, utilizes LiDAR technology to calculate highly accurate property dimensions which are used to generate accurate floor plans and create 3D virtual tours within minutes.
The technology allows agents to easily create a comprehensive virtual open house experience, reaching a wider audience who can view the house at any time, from anywhere.
Upping Your Game in the Square Footage Standard
Real estate agents who commit to measuring the square footage of every listing using a Lidar property capture system gain key advantages, including:
- Listings sell faster and for more money with accurate, high-value information delivered up front
- Reduced liability and greater trust through standards-compliant, defensible floor plans
- A complete digital marketing solution — immersive 3D tours, detailed floor plans, and analytics in one package
- Broader reach and better conversations by engaging remote buyers and showcasing marketing performance
