Napa Valley Valuation BLOG

By Daniel Brauning

When purchasing a home there are several generally standard inspections and reports. There is however one inspection area than tends to be overlooked. Measuring of the home’s living area to verify what is reported you are buying actually exists.

When leasing a commercial property, no matter how small or large, always measure the space.

Did you know that the living area of homes reported in the tax assessor’s records may not be correct and that are both larger and smaller than what actually exists? It is true.

Did you know that the living area report in the local MLS is obtained from the assessor’s records, not independent measurements? This is true as well.

There is a generally a small variance from a current measurement vs. the tax assessor’s records for different property types. However, there are instances where the variation is so great that it can affect the property’s value. These cases can bring a litany of consequences which all can be avoided by verification prior to the purchase of the home.

It is also wise as a tenant when leasing commercial space to obtain a measurement of the actual size of the leased space to verify your dollar per square foot rental amount. An independent verification can help resolve disputes between tenants and landlords and the building measurement diagram reporting can be kept by the owner for future space rental. It is also wise to agree on a method standard for measurements before entering into a lease.

If you are obtaining a home loan to buy the home, simply ask your mortgage professional for a copy of the appraisal report which will have a building sketch of the house showing the measured living area. If you are buying with cash be sure to call an independent real estate appraiser and have a living area measurement inspection completed and obtain building sketch diagram report. If you own or are renting a commercial space, always verify the improvement area to avoid disagreements about the calculation of rent.

These are inexpensive reports that will help complete the due diligence process when buying renting real property. Caveat Emptor and Caveat Rentor!