Bought a Home That’s Smaller Than Advertised? Fight Back and Protect Your Investment!

Bought a Home That's Smaller Than Advertised? Here's How to Protect Your Investment

Buying a home is one of the biggest investments you'll ever make. But what happens when you find out that the property you purchased is smaller than advertised? Whether it's an honest mistake or an intentional misrepresentation, you have options to fight back and protect your investment. Here's what to do if you find yourself in this frustrating situation.

Step 1: Confirm the Discrepancy

Before taking any action, it's crucial to confirm the size discrepancy and gather evidence.

• Review the Documents: Start by checking the property appraisal, purchase agreement, and MLS listing. Look for any statements regarding the home's square footage.

• Order an Independent Measurement: Hire a licensed appraiser or surveyor to measure the property's actual square footage. An independent measurement will provide an unbiased assessment and strengthen your case.

Step 2: Consult a Real Estate Attorney

If there's a significant difference between the advertised and actual square footage, consult a real estate attorney. They can evaluate your case and help determine if you have grounds for legal action, such as:

• Misrepresentation: If the seller or agent provided incorrect information, knowingly or unknowingly.

• Breach of Contract: If the sale agreement explicitly stated a larger square footage than what you received.

• Fraud: If there is evidence that the seller intentionally misled you about the property size.

An attorney will guide you on the best course of action, whether that's negotiating a resolution or pursuing legal remedies.

Step 3: Open Negotiations with the Seller or Agent

Many disputes can be resolved without going to court. Once you have your evidence and legal advice, present your findings to the seller or their agent.

• Request Compensation: This could include a partial refund, financial adjustment, or covering the cost of any related expenses.

• Mediation: If negotiations stall, consider using a neutral mediator to facilitate discussions and find a resolution.

Step 4: File a Complaint, If Necessary

If the seller or agent refuses to cooperate and you believe the discrepancy was intentional, file a formal complaint with your state's Real Estate Commission or licensing board. These organizations can investigate the matter and take disciplinary action if necessary.

Step 5: Pursue Legal Action as a Last Resort

When all else fails, legal action may be your best option. With your attorney's help, you can file a lawsuit to recover damages. These damages might include:

• The difference in the home's actual value versus the advertised value.

• Legal fees and court costs.

• Any additional expenses incurred because of the misrepresentation.

While lawsuits can be time-consuming and costly, they may be necessary to protect your rights and recoup your losses.

Step 6: Learn How to Protect Yourself in the Future

To avoid similar issues in future real estate transactions, take proactive steps:

• Verify Square Footage Early: Don't rely solely on the MLS listing or seller's claims. Request independent verification during the inspection process.

• Work with Trusted Professionals: A reputable real estate agent, inspector, and appraiser can help ensure that all aspects of the property are accurately represented.