Marketing Square Footage: Be Careful Not To Lie
A: This is a post for FSBO's and the brokerage community on how I feel about those who lie or round up in their marketing packages about a property's total square footage. Yes, a very specific post! I think it is a 'self-defeating' practice whose day is up, and if a client asks you to do this you should display your professionalism and refuse the exclusive.
It is such a different market out there right now than it was a year ago, and everything about how you market a property needs to be given a second thought to attract and eventually appease buyers as they come to your open houses and showings.
Maybe I'm wrong (and if so I would love to hear from you why), but in a market where the "power" or "dynamic" has shifted more into the hands of the buyers, we as brokers should ROUND DOWN the square footage instead of rounding up or flat out lying.I went to a showing last week with my clients to view a 3BR, 2BTH property that was said to be 1,600 square feet. I tell you this apartment was closer to 1,450 square feet, tops!
Why? Why do it. The look on my clients' faces of disappointment and frustration was clear from the moment they walked in. There is no way these people will even consider placing a bid when they were blatantly lied to. It also makes me look bad because my clients count on me NOT to waste their valuable time. The brokerage community must acknlowedge that buyers are smarter these days and have been on the sidelines viewing properties without bidding for them for months now. They know how big a 1,600 square foot apartment should look after seeing 12 of them already!
Buyers have more control now than they did a year ago! If anything you should advise your client to agree to under-estimate the square footage a bit and let buyers be 'pleasantly surprised' when they come for a showing. After all, happy buyers are more likely to submit an offer!
UrbanDigs Says: If the apartment is listed between 400-450 square feet in the offering plan than list it at 400! If the apartment is between 450-500 square feet in the offering plan than list it at 450! Use this strategy all the way up to high end listings too for as long as the overall market is flat and make buyers happy when they show up.
For Example: An apartment listed at 738 sq. ft. in the offering plan should be listed at 700 on the website and print ads. An apartment listed at 986 sq. ft. on the floorplan should be listed at 950 on the website and print ads.
Comments (3)
Hi, I am a realtor in Center City Philadelphia. You have a great point - a disappointed Buyer is not what sells homes! In Philly, I have heard stories of law suits brought because the Buyer thought they were paying x dollars per square foot based on the comps, when it was discovered the SF calculation was off. Many realtors here are ceasing the practice of advertising square footage just to avoid the liability altogether. I subscribe to the notion that honest dealings with the public is good for your clients and it raises the profession generally.
Posted by Nora Gibson | February 13, 2006 11:36 PM
Hello,
I'm a new Realtor in North Carolina and recently came upon a FSBO seller. I was looking for a house for myself and put an offer on their house. They had it advertised, on the internet and via flyers, as 2,700+ sqft. The contract was accepted and an expensive inspection was promptly scheduled. I asked the seller for documentation of the sqft and was told they could not locate a prior appraisal. The next day they called to tell me the sqft was actually 2,500 sqft and "sorry" they made a mistake. The man of the house works in the real estate industry and has no excuse for not knowing the sqft of his house.They refused to reduce the price of the house to adjust for the revised sqft. The very sad thing is, they're still advertising the house, on the internet and with flyers, as 2,700+ sqft and there is no one to stop them. This feels like a "bait and switch" scenario that will take advantage of an unlucky non-realtor represented buyer and I have no idea how to stop them without jeopardizing my license.
Posted by Deni | October 24, 2006 2:51 PM
Hi,
I'm saleing a home in Minooka, IL and my home is 2500 sqft and there is a home the same as mine saling just we had all the upgrades where we made the kitchen bigger 18x16 and they didn't have it done and they are saying there kitchen is 18x17 when it really is 18x11. The only thing I could hope for is that a buyer will see what they are doing and not buy there home oh and they have it listed as 289,900 and we are saling ours for 315,000 we got a lake view and they have apt in the back, All we can do is hope buyers will get smart and not buy from people like that. I'm tell ing every one not to go with that agent if he can lie about the homes he is saling then he will lie about every thing else. And the company he is working for I will stay away from too.
Posted by Sandy | March 28, 2008 10:02 PM