AGENTS! Stop Inflating the GLA When Listing Your Home on MLS! Here’s Why It Matters

Ever had that sinking feeling when an appraisal comes back and the square footage doesn’t match what you listed? As a real estate appraiser, I’ve seen this happen more times than I’d like to admit. It’s frustrating for everyone involved—you, the buyer, the seller, and yes, me too!

Let’s talk about why this happens and how we can fix it together. Spoiler alert: It starts with accurate measurements of the Gross Living Area (GLA). Adding a few extra square feet might seem harmless or even helpful for attracting buyers, but it can lead to some real headaches down the road.

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Why Does GLA Inflation Happen?

1. Making the Home Seem Bigger to Attract Buyers I get it—the bigger the home, the more appealing it might be. But stretching the truth on square footage isn’t the way to go. Not only can it lead to appraisal issues, but it also risks your reputation. No one wants to be known as the agent who fudges numbers.
2. Relying on Tax Records Tax records might seem like a reliable source, but they’re often outdated or just plain wrong. Different cities measure properties differently, and those records might not reflect recent renovations or additions.
3. Trusting Homeowner Estimates Sellers might think they know their home’s size, but unless they’ve measured it themselves using proper standards, those numbers can be off. They might include areas like garages or unfinished basements that shouldn’t be counted in the GLA.
4. Unintentional Errors Over Time Small mistakes can add up. Maybe the last agent rounded up, and the one before that did too. Before you know it, the home’s listed size has grown by 100 square feet over a few years!

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Why Accurate Square Footage Matters

Getting the square footage right isn’t just about numbers; it’s about trust and smooth transactions. Here’s why it’s so important:

1. Affects Market Value Buyers look at price per square foot when comparing homes. If the numbers are off, it can lead to unrealistic expectations and tough negotiations.
2. Avoids Appraisal Issues If I come in to appraise the home and find the square footage is less than listed, it can lower the appraised value. This can mess up financing and potentially derail the sale.
3. Maintains Your Reputation Honesty is the best policy. Accurate listings build trust with your clients and other professionals in the industry.
4. Prevents Legal Trouble Misrepresenting a property’s size can lead to legal issues. No one wants to deal with that!

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So, How Do You Measure Up? Follow ANSI Standards!

The American National Standards Institute (ANSI) has guidelines to help us all stay on the same page. Here’s the quick rundown:

• Detached Single-Family Homes: Measure from the exterior walls. Include heated and finished areas. Exclude garages, porches, and unheated spaces.
• Condominiums and Townhouses: Measure from the interior walls. Focus on the living areas inside the unit.
• Ceiling Height: Only include areas with ceilings at least 7 feet high. For sloped ceilings, at least half the room must be 7 feet, and nothing less than 5 feet counts.
• Basements and Unheated Areas: Finished basements are great but don’t count them in GLA. They should be listed separately.
• Precision Matters: Measure to the nearest tenth of a foot. It might seem tedious, but it makes a difference!

Want the full scoop? Check out the ANSI guidelines here.

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Real-Life Consequences of Inflated Square Footage

Let me share another story:

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Agents, Let’s Get It Right!

So, what can you do to avoid these pitfalls?

• Measure It Yourself: Grab a laser measurer and take the time to measure the property. It’s worth the effort.
• Hire a Pro: If you’re not comfortable measuring, consider bringing in a professional. Accurate measurements can save you a lot of hassle later on.

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