Buyer beware: Price per square foot often “trickery”

TRD New York /
Oct.October 10, 2013 10:48 AM

Brokers have been asking buyers to take price-per-square-foot numbers with a grain of salt, as listings have no uniform standard for measuring square footage and are often misleading.

Some listings, for example, may include closets, hallways and even elevator shafts as part of the square footage, while others go with simply the actual amount of usable space inside an apartment. Still, “usable” can be defined in myriad ways.

Buyers and sellers often discuss price per square foot when determining overall purchase price, Dan Bamberger of The Bamberger Group told DNAinfo. “It’s the most common way people try to make a justified analysis of how much they should be paying for an apartment.”

But, Bamberger and others told the site, “It’s really more trickery than anything else.”

Bamberger recently randomly selected four apartments on the market in Greenwich Village and found that on average, floor plans were nearly 44 percent smaller than the listed square footage. He also saw a difference of almost 12 percent between square footage listed for the same unit at two different times.

Jonathan Miller of Miller Samuel told DNAinfo that listing measurements tend to be between 5 and 10 percent higher than actual apartment size.

Still, he said, “there’s an expectation of precision that doesn’t exist. But it’s not like [the space] was hidden from you when you bought. It’s just another rating for the apartment.” [DNAinfo]  – Hiten Samtani


Related Articles

arrow_forward_ios
Single-family saves the day. Q3 resi sales up in South Florida

Single-family saves the day. Q3 resi sales up in South Florida

Single-family saves the day. Q3 resi sales up in South Florida
StreetEasy has launched a new tool offering users a private estimate of their home value. (iStock)

StreetEasy launches automated home-valuation tool

StreetEasy launches automated home-valuation tool
(Getty)

Brooklyn home sales fell at a record rate in Q3

Brooklyn home sales fell at a record rate in Q3
The vacancy rate hit 5.75 percent (iStock)

Rental listings in Manhattan hit 14-year high as vacancies soar

Rental listings in Manhattan hit 14-year high as vacancies soar
(iStock)

Manhattan apartment vacancy smashes 5% barrier

Manhattan apartment vacancy smashes 5% barrier
(iStock)

Suburban housing market surged in August while Manhattan trailed

Suburban housing market surged in August while Manhattan trailed
Home sales plunged across South Florida in Q2

Home sales plunged across South Florida in Q2

Home sales plunged across South Florida in Q2
(iStock)

Here’s where resi prices fell the most in Miami in Q2

Here’s where resi prices fell the most in Miami in Q2
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...