When shopping for a home, it is important to realize that a listing agent's job is to obtain the highest possible price for the seller!  After all, this is how the listing agent makes his/her money so naturally, every listing is going to present a property in it's best possible light. It is always wise to ask how the square footage of a home is calculated since home owners and agents are not always consistent in their reporting. For example, a home represented as having 2000 SF "heated" area can be misleading if the buyer is lead to believe that a home with 1000 SF on the main floor and 1000 SF finished basement is comparable to say, a one-level home containing 2000 SF or a one-and-a-half story home with unfinished basement and 2000 SF above grade.

Another example, a home having 1500 square feet of primary heated (heated by the homes central heat system) living area and 500 square feet of enclosed, finished "converted" garage or porch with monitor heat represented as having 2000 square feet. Certainly there are quality differences that would rule out comparing either of these homes with a nicely finished one level 2000 square foot home.

You, as a buyer, need to exercise common sense and ask the right questions when comparing size differences between supposed comparable sales. Did you know that in some jurisdictions, real estate boards have even adopted a policy to not report the square footage of a home for fear of potential lawsuit.

Talk with your agent and/or appraiser and ask them to explain how the comparables used in their market study compare in square footage. It is important to realize that each dwelling is unique and sometimes quality differences and functionality override any consideration of whether you should "count this" or " count that."  

As a final note, be aware that owners and agents may not report the square footage of a home in the same way. Many real estate agents merely represent "total heated living area" and do not provide a complete breakdown of how living area is calculated leaving it up to the buyer or buyer agent to determine. A "breakdown" of living area is important because often times, there are quality differences between finished basements, finished attics, conversions, etc. and "above grade" finish. Appraisers, on the other hand, are usually more consistent in the reporting of "living area" due to secondary market (lending) guidelines that require them to distinguish between "above grade", "below grade", "converted areas", and so forth.

If you are not sure how the size of a home is represented, simply ask the listing agent to explain the size/quality differences -or- hire an independent, professional real estate appraiser. If the property is listed "For Sale By Owner", a local real estate appraiser is your best source for calculating square footage. Remember, the manner of reporting square footage can vary by jurisdiction or market locale.

• A local perspective