Frequently Asked Questions and Comments about Square-Footage Range
In late March 2008, the display of square footage on all non-closed
listings in the TEMPO™ system changed to a range. Following are some
frequently asked questions and comments concerning this new policy.
Question: Who decided to change to a square-footage range system?
Answer: The CMLS Board of Directors voted to make this change.
Question: Does the North Carolina Real Estate Commission (NCREC)
require the use of square footage?
Answer: NCREC requirements about square-footage measurements and
reporting have not changed. The commission does not require real estate
agents to report the square footage of properties. However, CMLS requires
square footage to be input for all listings. When square footage is
reported, NCREC requires agents to either measure the square footage of
the property themselves, according to the
Residential Square Footage Guidelines, or hire another professional,
such as an appraiser or other more experienced agent, to measure the
square footage. The listing agent must input the actual square footage
obtained from his or her measurement.
Question: Is not measuring a property an acceptable option?
Answer: No. CMLS rules require square footage (measured according
to NCREC guidelines) to be reported for all listings.
Question: How does it work?
Answer: Members will measure (or have measured) the property and
enter an actual square-footage value into the TEMPO system. The system
will display a square-footage range that is automatically calculated from
the number input by the listing agent for all active, contingent,
conditional, pending, expired and withdrawn listings.
Question: Will the actual square-footage value ever be displayed?
Answer: Once the listing is sold, the square footage entered by the
agent will display on reports.
Question: How is the range determined?
Answer: The range is determined by the following formula: 10
percent down then rounded down to the nearest hundred, and 5 percent up
and rounded up to the nearest hundred. NCREC does not have a problem with
MLSs using a range, nor with agents advertising within a range as long as
the actual measurement of the house is within the range. NCREC does not
have a problem with the specific range formula approved by the CMLS board.
Question: How will searching in TEMPO change?
Answer: Searching by square footage in the TEMPO system will work
exactly as it always has. When searching by square footage, returned
search results will only include listings where the actual square-footage
input falls within the range.
Question: What if my client wants to see properties with a minimum
of 3,000 square feet?
Answer: Enter a minimum square feet of 3,000 into the TEMPO search
screen. Only properties meeting that requirement will be returned.
Comment: "I think it will waste Realtors®' time showing homes to
clients and then realizing that the home's size is not what the client
wanted."
Response: Searching by square footage in the TEMPO system works as
it always has. When searching by square footage, returned search results
will only include listings where the actual square-footage input falls
within the range. For example, if the search criteria is Min: 2,000-Max:
2,500, only listings between 2,000-2,500 square feet will be returned in
the search results. However, the square-footage range displayed on the
reports can be as low as 1,800 and as high as 2,700 square feet. Agents
need to educate their clients that although the square-footage range on
the report might appear lower than the client's specifications, only
listings that meet the client's specified square-footage criteria are
returned.
Comment: "I always pull active listings to see what the competition
will be on my new listing. It is hard to differentiate because of the wide
square-footage range. I pulled one listing that displayed a range of
1,300-1,600 square feet, so I pulled its tax info to get a closer figure.
The tax info yielded 1,080 square feet. Our MLS is now ineffective when it
comes to accessing competitive listings."
Response: Searching by square footage in the TEMPO system works
exactly as it always has. If you have a listing with 1,500 square feet and
you want to find comps with 1,500 square feet, all you have to do is enter
1,500 in both the minimum and maximum fields; only listings with 1,500
square feet will be returned in the search results, although the
square-footage range displayed on the reports will be 1,300 to 1,600.
Comment: "I thought Realtors® were trained on how to measure a
home. If we are going to call ourselves professionals and charge
professional fees, we should be able to measure a house and come within 3
to 5 percent of square footage as the commission requires."
Response: NCREC requirements about square-footage measurements and
reporting have not changed. The commission does not require real estate
agents to report the square footage of properties. However, CMLS requires
square footage to be input for all listings. The listing agent must input
the square footage obtained from his or her measurement. Not measuring a
property is unacceptable. Agents are still liable for square-footage
measurements found to be egregious in measurement or reporting.
Comment: "The 'range' thing is fine for a large house, but a
300-square-foot swing on a house under 1,200 square feet is a huge swing."
Comment: "The range of 3,600-4,400 for a 4,100-square-foot home has
little value or relevance. It is too broad!"
Comment: "How did we arrive at the '5 percent up, 10 percent down'
range? How did we arrive at rounding at 100 square feet versus any other
choice?"
Response: Establishing the range was a compromise between keeping
square footage the way it was versus eliminating square footage from the
MLS. The board chose to adopt the method used by the Triad MLS because it
works there and agents are happy. If your clients have specific minimum or
maximum square-footage requirements, use those numbers when searching and
you can guarantee that the homes you show will meet their requirements -
regardless of the ranges displayed on the report.
Comment: "I understand that part of the thinking of the CMLS board
was that publishing a range would minimize agents' liability. Well, I
would rather address any discrepancies prior to closing rather than after
closing. As long as a finite number is going to be published at some point
in time, then I do not see how the legal concern has been minimized."
Response: Most agents agree that if a property is measured three
times, most likely there will be three different results. If an error
occurs with the initial measurement, the true measurement is likely to
fall within the range. There will always be discrepancies. Publishing a
range rather than exact square footage renders minor discrepancies moot,
especially in the (sometimes tense) final hours prior to closing.
Comment: "Since the CMLS requirement is that a property be
measured, would a listing agent not be required to provide those
measurements if asked by a buyer agent?"
Response: NCREC says, "When a real estate agent makes a
representation about the square footage of a property to a prospective
buyer or renter, it is important that the information provided be
accurate." NCREC has stated that it does not have a problem with agents
advertising within a range as long as the actual measurement of the
dwelling is within the range. The NCREC legal staff said, "A range is a
'less-specific representation,'" and all the commission requires is that
the representation is "reasonably right." If buyers and buyer agents
desire a more specific square-footage measurement, then the buyer agents
can measure the property and take responsibility for the calculations.
Also, agents can still do a search in TEMPO based on a specific
square-footage number entered into the MLS. Properties identified will
reflect the square-footage number entered into the MLS.
Comment: "Is putting the actual square footage in the Agent Remarks
a good or bad idea or violation of the rules? We've worked so hard to get
the ranges in and now some agents are circumventing this in Agent Remarks,
which are sometimes printed out by agents and given to clients. I thought
the intent was to not disclose this anywhere, and it could show up in
official print!"
Response: The CMLS Board of Directors chose to not prohibit agents
from putting the actual square footage in the Remarks or Agent Remarks of
the listing, although it is correct that it does defeat the whole purpose
for the change. The conversion to the square-footage range is so new; the
board didn't want to make any more changes just yet. If it appears to be a
problem in the future, the issue may be revisited.
