Public Record Versus MLS

[GWISC]

Just had an issue related to MLS vs public record. MLS of comp indicated 3522 sf. Public records says 2600+-. Called the LA. She says (per the seller) "the assessor did not go to the 2nd floor area above the attached garage". The MLS sf is based on the sellers blue prints. So, I explain why the public records are wrong and indicate the LA is relying on blue prints and so I will rely on what the LA indicated in her MLS sheet. Researched and explained. I won't change the report to make the sf wrong just to satisfy the UW.

 

[factsandtruth]

In one county they add the basement to the GLA....

 

[Vermonter]

My argument on this issue is that the property is marketed and sold based on the MLS square footage. The buyer believed they were buying what MLS said and looked at other properties with similar MLS square footage and made their offer and agreed on a price based on the MLS square footage. For the SALES comparison approach I like to consider the data that was the basis of the SALE. If the property was really larger or smaller the buyer probably did not know that when they made their purchase decision.

Marketed based on it....yes.
Offer made based on it....possibly.
Sold based on it without verification....highly doubtful.

 

[Peter LeQuire]

Marketed based on it....yes.
Offer made based on it....possibly.
Sold based on it without verification....highly doubtful.

For some houses, the GLA error lasts for more than one listing. Whether the error is cause by the assessor's office incorrectly imputing the main level area to an upper level, or the imputing garage area to a bonus room that is obviously smaller, at some point error becomes obvious and needs to be corrected. Eventually, the Emperor figured out that he was naked, and the sycophants and crowd who oohed and ahed at his new clothes were shown to be what they were: the little boy who called them out was right.

Just shows to go you that, while appraisers doing residential work are desperate for information that can be quantified, and the people who buy houses don't necessarily value (often insignificant) differences in living area.

 

[DJBanas]

Interesting conundrum....I just looked at my reports I did this month (9) and only 3 had the same GLA on the MLS sheet and tax record. On 1 of these both were wrong as there was a PERMITTED addition of 380sf that neither had and the other 2 matched my measurements. On the other 6 the tax record matched, within reason, my calcs 4 times and the MLS sheet only 1x. On the tax records the sketch dimensions were sometimes off by +/- 2'-3' on a side. MLS sheets typically added finished basements (4), screened-in porch (1) or sun room (1) that did not have a heat source to the AGLA.

I only use my measurements and will show a little chart on where the difference with the tax records lay. I never explain differences with MLS. I have never been stipped and the whole process takes less than 5 minute.

 

[Thomas Holding]

Appraisers should always be very careful when relying on public tax data, especially square footage estimates. Many CAMA computer systems do not really calculate heated living space. Instead, they calculate an adjusted base area, which is comprised of the areas of the different elements of the house (including porches, decks, patios, upstairs areas, etc.) For instance, in the county where I work, a two story home 20' x 50' would naturally have 2,000 square feet of heated living space. Our CAMA system takes the first floor and calculates 1,000 sq ft, but the second floor is only shown as 800 sq ft., even though it actually has 1,000 sq ft. This is because the second floor is only calculated at 80% of the cost of the first floor. These are cost systems, and very simplified ones at that. A 100 sq ft deck might only be given 20% of the base rate, which would show up as 20 sq ft added to the adjusted base area. All of these areas are combined into an adjusted base area which is then multiplied by one cost number to arrive at the total cost of the improvement.

Even though many counties show a heated square footage estimate, it is just that, an estimate. Most of the time, assessors are not allowed to enter the house to measure upstairs areas, so our software generates a number based on the sketch and cost schedule. Usually, this information is only provided as a courtesy to the public, but it is not reliable, because we really don't use it in our calculations. Also, please remember that exterior measurements are usually rounded to the nearest foot, and sometimes, the only measurements are taken from areal photography. Even though tax appraisers are trying to calculate a value as of a specific date, they use very different methodologies than fee appraisers typically use. For these reasons, and many others, tax records often will vary greatly from MLS data.