When I am asked to put together a comparative market analysis, it is important to discuss all of the factors that are included in how I come up with pricing. One of the aspects that I like to discuss with my clients is the importance of measurement.
The first thing that needs to be brought to attention is that all Real Estate professionals use the same standard of measurement. It is called the ‘Residential Measurement Standard’ (RMS for short). It is a universal standard based on transparent, uniform principles that gives accurate and consistent property measurements. The only occasion that RMS does not apply is when a professional is measuring non-residential properties such as industrial, retail or commercial sites.
Residential Measurement Standards (RMS) benefit both my buyer clients and my seller clients. It might be assumed that measurement only affects the sellers, but buyers also want to ensure the size of the property meets their needs. Sellers want their properties accurately described to potential buyers so there is no confusion upon closing or thereafter. When representing a seller, I explain the relationship between property size and seeing price along with the many other factors that affect the price of the property. Property size is quite often one of the key elements for buyers. It is important to note that RMS area must be used to calculate the property size.
As a realtor, I have an obligation to perform my due diligence to my clients. Using the size of a property from a previous listing is unadvisable for a couple reasons. One: There is really no guarantee as to the accuracy of the previous listing’s measurements. Two: the property may have been renovated since it was last listed. To add to this, sometimes sellers become upset when they list their home and find that the property size is smaller than when they originally purchased it. When this occurs, it is due to the fact that the property was purchased under different size standards that didn’t include the RMS value that is currently used. I explain to my clients now that properties are measured according to this RMS there is no disadvantage and that their house hasn’t in fact shrunk, it is simply different standards.
It is not mandatory for a professional to measure the property themselves. In fact, as a safety measure I always have a professional measurement company do the measurement as do most realtors. It protects me as a realtor and it protects my sellers as well. Also, when I receive questions from my buyers it is easier to show them the professional layout from the professional measurement company that I know is bona fide.
This is a simple explanation into how properties are measured. If you have any questions about measurement, is it important to go through these with your realtor. Whomever you are working with will be happy to answer your questions.
