Frequently Asked Questions (F.A.Q's):
Q: We put our home up for sale and the square footage is way off! Is a garage usually considered in the square footage in a home? It is attached to the home.
A: Although a garage is attached to the home, it is not considered part of the home's square footage. That is because only livable space is considered in the square footage calculation.
Calculating the square footage of a home is not as easy as it sounds. Neither real estate agents nor homeowners should attempt the calculation (at least not if you want a reliable figure). Rarely are houses perfectly square, which is one reason for the difficulty. Appraisers map out the house on a piece of graph paper, calculate all the edges, come up with "mini-areas" for each rectangle - then add them all together.
Plus, there are other intricate rules. If there has been an addition to the house and the owner did not receive a building permit, then that section of the house may not be allowable as part of the square footage. The same with attic and basement conversions, lofts, and so on. It is best to rely on a licensed appraiser to recalculate the square footage of a house. When a home's square footage is advertised, the figure usually comes from previous sales, perhaps as far back as the builder. Homeowners and real estate agents don't usually recalculate the square footage.
Q: We were set to close and the seller now wants to set up new closing date. Can I get them to come down off the price of the house and anything else you think that would help me?
A: The seller may have had legitimate reasons or perhaps not. You can attempt to renegotiate the price if you choose to, and this can be looked at several ways. Once you make your offer to purchase the house at a lower price, this can be looked at as a new offer, which can nullify your original offer. Most likely, you are going to just have to decide whether you like the house enough to go ahead with the purchase.
Q: How can I find out how much my house is worth? There are no comparable homes in my area.
A: This may be a bad sign for you, especially if you think your house is worth more than other houses in your neighborhood. Homes maintain their value better if the neighboring properties are fairly similar. In this situation, you may actually have to talk to several Realtors, get their opinions, and come up with some sort of consensus. Without knowing why there are no comparable properties in your area it is difficult to give another suggestion. If your lot or home is over-improved for the area, that means the value will most not likely be what you think it is. If your home is much larger, you might not get the same cost per square foot as other homes in the area.
Q: How do you know whether the price of a home per square foot is reasonable or if you are about to make a bad decision?
A: Keep in mind that much more goes into the market value of a house than it’s square footage. For example, two houses next door to each other can have the same square footage, but if one has two bathrooms and the other has only one, guess which one will probably be worth more? It will also cost more per square foot.
However, if you compare recent sales of similar homes, the cost per square foot should be similar to those properties. You can ask your agent to provide you with comparable sales data.
Q: Where can I find a Real Estate Agent "Code of Ethics," if there is such a thing?
A: Some real estate agents are members of the National Association of Realtors, which does have a code of ethics for their 720,000 members. You can find it at: Austin Board of Realtors Ethics
Q: I have reason to believe that the seller's agent was not truthful about the opposing bids for a property. I'm suspicious he made up bids to drive up the price I eventually offered. Do I have the right to demand proof of the opposing bids?
A: An agent or a seller is not obligated to divulge details of competing offers. You can ask for it in a counter-offer, but you may be taking a risk on losing the property altogether. If you feel you were a victim of fraud, you should consult with an attorney and ask him or her for advice.
Q: Can a broker sign an Exclusive Buyer Representation Agreement with a buyer when that broker is representing the seller as a dual agent? Isn't this a conflict of interest?
A: There are a few different forms with similar sounding names. The form you signed probably means you agree to use that agent exclusively and will not go out looking for another agent. The other form with a similar name does what you suggest. It means the agent will only represent you in the particular transaction.
Read what you sign. Get copies.
Q: What is the difference between a real estate agent and a real estate broker?
A: Most states require real estate sales professionals to be licensed by the state, so that they can control education and experience requirements and have a central authority to resolve consumer problems. The terminology used to identify real estate professionals varies a little from state to state. Brokers are generally required to have more education and experience than real estate salespersons or agents.
The person you normally deal with is a real estate agent or salesperson. The salesperson is licensed by the state, but must work for a broker. All listings are placed in the broker's name, not the salesperson's. A broker can deal directly with home buyers and sellers, or can have a staff of salespersons or agents working for him or her.
