Sq. Ft. and pricing?

Question

Home was advertised at 3000 sq. ft. of which I took into consideration when making my offer, now I'm told it's 2700 sq. ft. and I want to renegotiate my offer.  Am I being reasonable?  Seller doesn't think so.

Bill Gulley · Answer

I don't make offers based on SQ. FT. it's just a part of the valuation process and frankly, there are other more important issues, like location, condition, comps and the market activitiy. If that's how you based your offer, I'd suggest you adjust it, I know in many areas existing homes go for less than $100. a foot.

Steve K · Answer

If you arrived at your initial offer on a per square foot basis then I think you should subtract $30k from your offer price, at least as a jumping off point.  You can't buy just on that evaluation, but you can certainly comp other sales with similar functional uses based on a square footage number.  Whether its a perfect solution or not is debatable, but it is indicative of how the market values homes in the area you're looking to purchase in.

As Bill said - it's pretty common for the tax assessor to have incorrect sq ft information.

Bill Gulley · Answer

And, it probably is worth less! How much? No idea, I just won't do it on a sq. ft. basis, unless it's an unfinished house that a contractor bailed out on.

Sq. footage does not take into consideration the functionality of a property, a 2 brd is not like a 4 bdr, but the 2 bdr could be bigger. 
I suggest you look at the number of beds and baths and room sizes if you can of the comps. A 15x20 additional room could be worth alot more than other areas, an additional bedroom and bath for example.

Where was the error made? Sometimes tax records will show the total area of construction taking in the roof overhang which may explain the difference. Check your comps too, are they sized using the same info?

Susan H. · Answer

Thanks Bill,
I had taken that info into consideration previous to making my original offer.  Price that other homes in that community had sold for, updating, etc; and arrived at my per sq ft offer.  Whether accurate on my findings or not, I feel the home is now worth somewhat less due to the loss of 300 sq. ft.  The question is now where do I go from here?  I want to be fair to the seller (and myself of course).

Susan H. · Answer

I don't think seller intentionally mislead.  I'm sure it was an honest mistake.
As I based my offer on $100 per sq ft = $300K, should I now reduce my offer to 270K = $100 sq ft x the correct square footage of 2700?

Bill Gulley · Answer

Agreed, that it a significant difierence, that's a 15x20 ft. room! If the seller is claiming an error, that may be, if they attempt to hold you to it, I might suggest fraud and if they are lying about that, what else are they lying about? You'll probably end up walking off on this one, I'd consider it....

Steve K · Answer

Doesn't matter what the seller thinks.  You are completely justified in renegotiating.

Sq. Ft. and pricing?

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