We have a home under contract and just received the appraisal, which indicates the home is 400 sq. ft. smaller than listed on the mls. This represents a 13% difference in size. The inspector did not measure sq. ft., so this is the first we're learning of the discrepancy.
We made our offer based on a home that we believed to be 400 sq. ft. larger and would like to negotiate the price/ask for a credit/something similar to make up for the misrepresentation. The agent is representing us as well as the sellers.
What is the best way to move forward and negotiate due to the smaller sq. ft. and what is reasonable to ask for?
It should actually be on the agent to properly measure the property when listing it (I bet they didn't tell you that though, did they?) I would also check the tax-records as that would be an go-to for a true estimate of sqft as well. You can approach the negotiation from 2 logical ways-
1. price per sq/ft - and reflect new sq ft to get to price
2. look up recent comps for the square footage that houses sold (i.e. your appraisal will have this). You do not need to share your appraisal with the seller (would actually recommend you don't unless it came under), but share addresses that may show in your favor potentially.
If it is still a reasonable price and you're trying to knock some off for the variance, would go for the price per sqft option in terms of calculating the counter offer.
Thanks so much! Super helpful and much appreciated-