BIC TIP #1289: New Square Footage Measuring Rules
Grab your tape measure, because the rules got a refresh. The North Carolina Real Estate Commission has released updated guidelines for measuring residential square footage. Stephen Long, your Notorious BIC, admits the revision is not as dramatic as he had hoped, but there are a few clarifications every listing broker needs to know, including one that changes how you look at below-grade space.
Mostly Clarifications, Not a Revolution
Most of the changes are points of clarification rather than brand new concepts. For example, a fireplace with a thermostat is now considered a permanent heat source. A polished concrete floor is considered finished. These are the kinds of questions that used to spark debates in the office, and now the guidelines answer them directly.
None of this rewrites how you measure a typical home, but it does remove some gray areas that brokers have been arguing about for years.
Dirt on Any Wall Means Subterranean
One of the bigger updates: if any of the four walls has dirt against it, that entire floor is considered subterranean. Appraisers have looked at it this way for years, so the guidelines are now catching up to how valuation already works.
Why does that matter? Appraisers typically value subterranean square footage at a lesser rate than above-grade square footage. If you market a walkout level as if it were above grade, and the appraiser classifies the whole floor as subterranean, expectations and value can split apart in a hurry.
Accuracy Is Still Your Job
The updated guidelines are published on the Real Estate Commission’s website, and every broker should read them. If you are marketing square footage, you are responsible for making sure it is accurate, and Stephen reminds brokers that the measurement should be within 5 percent.
That means measuring the home yourself or relying on a qualified source, documenting how you arrived at the number, and classifying each area correctly. Guessing from tax records is not a measuring method.
The Practical Takeaway
Read the updated guidelines before your next listing appointment. Pay special attention to the new subterranean rule, the heat source clarification, and the finished floor clarification. Measure carefully, classify above-grade and below-grade space correctly, and keep your marketed numbers accurate. If something does not fit neatly into the guidelines, ask your broker-in-charge before it goes into MLS.
This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.
