Understanding the accurate square footage of a house can be a game-changer when it comes to real estate investment. It’s like finding a hidden treasure! If a house is marketed with less square footage than it actually has, you could be in for some serious gains.
Think about it this way: every home buyer is also a real estate investor, even if they don’t realize it. Sure, we all want a home that suits our lifestyle, but why not make some money while we’re at it?
I stumbled upon a golden opportunity recently where I could make up to $260,000, all thanks to a real estate agent who didn’t pay enough attention to detail. A bad agent can cost sellers a lot of money, but a good agent and a buyer who knows what to look for can make a fortune.
So, how can you profit from homes with incorrect square footage?
Real estate is full of opportunities to find these kinds of anomalies, which is one reason I prefer it over investing in stocks. With some careful searching and smart negotiating, you can find great deals.
Here’s a simple guide on how to make money from homes with incorrect square footage:
- Look for homes with higher "official square footage" than marketed. The "official square footage" is what’s recorded on the tax records from the assessor’s office. Most homes are marketed with square footage that’s equal to or higher than the official data. Your goal is to find the opposite.
Why would a home be marketed with less square footage than the official data? It’s likely due to negligence or ignorance by the listing agent and seller. As a seller, you might have missed this discrepancy because you were busy with other things and trusted your agent to handle everything. But details matter!
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Do your homework. The bigger the discrepancy in square footage, the more profit you can make. So, compare the marketed square footage with the official data on as many attractive homes as possible.
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Once you’ve found a home with a square footage discrepancy and everything else checks out, buy the house. Measure the home yourself and get an appraiser to confirm the measurements before buying.
Remember, finding a square footage discrepancy is a bonus, not the main reason to buy a home. The main reason is to find a home that you love and can afford. But if you can also make some money from a square footage discrepancy, that’s a win-win!
Some homes don’t list square footage because it invites scrutiny, especially if a house has a lot of unpermitted space. But as a buyer, you should always do your due diligence.
If you’re a seller, make sure you price your home correctly. Pay attention to the details! If you do more than your counterpart, you could make a lot more money.
So, have you ever found discrepancies in the marketed square footage of a home versus the actual square footage? Why don’t more people pay attention to these details when so much money is at stake?
If you’re interested in private real estate investment, check out Fundrise and Crowdstreet. I’ve personally invested $954,000 in private real estate since 2016 to diversify my holdings and earn more passive income.
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