Square Footage Disclosure and Measuring Houses
Square footage disclosure is used to properly report the square footage of a house. It is often a significant issue. Whether square footage is used for the purpose of marketing a house (i.e., including this info in the MLS listing or in an advertisement) or is of concern to a buyer, accuracy is essential.
The Colorado Real Estate Commission has taken the position that the method used to measure square footage is to be consistent with local custom, as long as everyone in that market measures and reports it the same way, that method is
deemed sufficient to preserve the accuracy of reporting. However, the Commission also requires real estate agents to use the Square Footage Disclosure form whenever square footage is used for marketing to ensure all the parties have the same understanding as to the methodology and the source of the measurement.
Sources of Measurement
- Licensee measurement – if real estate agent measures the property, then the standard/methodology/manner has to be indicated.
- Exterior measurement
- FHA
- ANSI
- Local Standard
- Other
- Prior appraisal
- Building plans
- Assessor’s office
The listed price is based on the square footage of your home, therefore it is extremely important that the correct number and reliable source is used. As a buyer, if you have any concerns about the accuracy of the square footage represented, you can hire an independent professional to measure your home or measure it yourself.
What areas are excluded?
Any floor area that is below grade as gross living area normally does not count. Unfinished attic, porch, utility room, enclosed sun porch, garage, or any other room not part of the primary house. If it is not heated it is typically not included in the gross square footage.
Square Footage Disclosure Form
Click here for a blank example of the Square Footage Disclosure form.
The form has to be signed by both seller and buyer.
