Is it time for ANSI to be replaced?
Everyone in the real estate industry knows the ANSI name. The surprising part is how little most people actually know about the standard, which is the name they toss out whenever anyone asks a question about square footage. They assume that if they know it, it must be from the ANSI standard. More often than not, the two are totally different.
Consumers are often cheated by agents who overstate square footage, while trying to play the price-per-square-foot game where the one with the most gets the most money. Buyers find out years after they buy their home that the square footage is much less than they had been told. And, at that point, it's too late to do anything about it. An expensive lesson in real estate.
This keeps on happening because the National Association of Realtors offers no rules on measuring square footage. For an industry with a form and rule for every aspect of the business, if you look for any classes, books, or guidelines on measuring homes they are missing. Nothing is available to help agents understand the importance of this topic.
Until all real estate professionals measure square footage, and report it using the same names, consumers remain at risk of over paying for real estate. Within MLS systems and in public records, we found over 100 names for finished square footage. That's crazy! Makes you think the real estate industry doesn't want consumers to understand how they calculate square footage. How this has avoided consumer protection groups is beyond me, but it's time for the real estate industry to catch up with the rest of the standardized world.
The commercial side of the real estate industry has seven (7) standards. Think about that. They have seven and the residential side struggles with having two. The ANSI standard and the American Measurement Standard are the two current options. That's the way most appraisers measure square footage, using one of those two. However, many use one of the other and don't know the difference. There's few classes that teach them the difference. The whole system needs re-inventing. Consumers need to be protected and the current hodge-podge of measurement methods simply does not do the job.