Through the recent articles, we have explored some typical cases of inflating square footage (sq ft).
From the buyers' perspective, purchasing a house with inflated sq ft at the listed price per sq ft is understandably not ideal. It might feel akin to being deceived.
Conversely, many sellers might think, "Ah, if we inflate our sq ft in the same way, we could sell our house for more."
However, is there no issue from the seller's perspective when selling a house with inflated sq ft?
Absolutely not. In fact, inflating sq ft can lead to secondary problems during the process of completing the home sale contract.
When buyers purchase a house with a mortgage, it typically involves an appraisal. During this appraisal, almost all appraisers naturally verify tax-related documents and base their appraisal on the size of the house stated in these documents.
In other words, the appraisal is conducted based on the house's accurate original sq ft. Consequently, the appraised value of the house may come out lower than the contracted price. This means buyers become aware of the exact sq ft of the house, sometimes leading to contract cancellations.
Even if the contract doesn't get canceled, if there's an appraisal gap, buyers often attribute this difference to the incorrect sq ft, and sellers may be held responsible for covering the gap.
So, if you're a buyer, when viewing a house, be sure to request the realtor working with you to provide the accurate (based on tax documents) sq ft of the house. Conversely, if you're a seller, even if you inflate sq ft, make sure to specify the exact and accurate above-ground sq ft to avoid issues later.
That's all about sq ft. I'll strive to provide even more helpful articles next time.
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