Profile picture for user9484909

What to do when the house you are under contract to buy comes in 671sqft less than stated??

The county has the house as listed as 3032sq.ft. and the appraisal and rough measurements of the home are coming in at 2361 sq.ft.  The problem, we as buyers are having, is the price per sq.ft.  We were going to be paying $90/sq.ft. now from the 671 difference in sq.ft.  we would be paying $115/sq.ft

  • August 28 2012 - Avon Lake
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Answers (5)

Profile picture for Ofe Polack
What an ooops!  At least the town is being reasonable and willing to reimburse for the error, that's a first one!  You talk about the sq ft but not about the appraised value given by the appraiser.  Was it lower than what you had offered or higher? Also to take into consideration is whether you want to keep the house or walk away from the deal.  What does your buyer agent advice?
  • August 28 2012
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My foremost question is do you have a Realtor representing you?  Does the Seller have a Realtor?  Somebody should be guiding you on value, especially with the purchase of such a large investment.  And that expertise needs to come from a local expert, as a Realtor in Georgia I am not in tune with your market.  If no Realtors are involved than you would need to hire an appraiser to see what their value comes out at, but make sure you extend due diligence in order to obtain correct value or retract offer until this can be obtained.
  • August 28 2012
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Profile picture for user9484909
Thank you for the input. I have contacted the county and their office said the current owners can receive a refund for past taxes, because according to an old system they miscalculated the home.
 
We would like to move forward with the buy, but with a fair price in mind.  I just wondered if that was being unreasonable. 

Thank you again for your thoughts!!  Making me feel better about offering a lower price!

  • August 28 2012
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Are you within due diligence, if so might consider pulling away, or going back to Sellers on price.  Was this Sq Ft in the MLS incorrect?  The County records depending on where you live may often be off, and of course Realtors' may often rely on this data, so there may not have been any dishonest intent, but that is why you normally have due diligence in a  transaction.  If you are being represented by a Realtor, they are the first one to ask this question to.
  • August 28 2012
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Profile picture for sunnyview
You need to make a decision whether you want to buy the house based on the new information in the appraisal. If the rough measurements are coming out 22% smaller, that is something that you will deal with when you go to sell. Also the measured sf will be used for for refi appraisals too.

I would have a sit down with your agent and ask them to show you the comps that have sold between 2000 and 2500sf and the comps between 2800-3200sf to see what the price difference is overall (not just per square) and then make your decision about whether to offer less, ask for a credit from the seller or walk away.
  • August 28 2012
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