HOME MAINTANENCE: How to Measure Your Home’s Square Footage

One of the most confusing and misleading metrics in the home building and home selling business is area — the “size” of a house.

The problem is that there’s no adopted standard; everyone measures it differently. There has been a move in the past few years to create a universal standard like the one architects use (specified in AIA contracts), but it isn’t mandatory and isn’t yet widely used.

Many state boards of real estate specify a process to measure house area, but it’s a recommendation, not a requirement. So “house area” means different things to different people.

The one thing that is always true is that area is never measured from the inside of the walls; the area of a house always includes all wall thicknesses interior and exterior.

Gross area

Not surprisingly, builders and real estate agents often want to show the largest number they can, so they sometimes measure the entire perimeter of the house on both floors. They may or may not include porches, stairs and two-story spaces. Because you don’t know their basis, it can be very hard to compare one house to another.

A relatively impartial source is your county auditor or assessor. They calculate the size of the house for tax purposes and therefore measure all houses the same way. And although their measurements aren’t always a true reflection of the size of the house, they use the same protocol, so it’s easier to compare one house to another.

But county records show only the gross areas contained within the perimeter of the foundation, which doesn’t accurately reflect the “livable” space within.

Defining separate spaces

A better way is to list areas separately, rather than combining them into one number; that’s the way we calculate areas at our office:

We first measure the perimeter of the house at the exterior wall sheathing — not the siding or brick, just the framing — on both floors.

Next we subtract the upper part of any two-story spaces and deduct the area of stairs on the

UNDERSTANDING CO-OPS: That Riveting Co-op Financial Statement

WHEN you own an apartment in a co-op and the annual board meeting rolls around, the building’s financial statement arrives in the mail.

It’s tempting to let it languish in a pile of bills, but remember: you are a shareholder in the company that owns the building. Given how much New Yorkers invest in their co-ops, it’s worth giving the finances more than a cursory glance. Even if you’re just thinking about buying a co-op, here are questions that can guide you in analyzing whether you’re making a sound investment.

WHAT WENT UP (OR DOWN)?

Financial statements typically present results for the past two years, in columns so you can compare the numbers. “I look for changes from one year to the next,” said Paul Wolsk, a real estate lawyer with Hartman & Craven. “If all of a sudden there’s a much higher accounts payable to vendors, that might mean the co-op is in a cash crunch.” It’s not that a big increase is necessarily a bad sign — the co-op might have had a big expense like replacing the roof. You want to understand why there was a significant change.

WAS THERE A PROFIT LAST YEAR, OR A LOSS?

Obviously, a profit is better than a loss — meaning the building’s income from monthly maintenance fees, commercial rent and other sources covers its expenses. But if a building relies on an unpredictable source of income to pay for operating expenses, like the flip tax some co-ops charge sellers when an apartment changes hands, that can be a red flag. “If they’re making up a deficit with a flip tax,” Mr. Wolsk said, “it’s likely that their maintenance is not high enough.” Most buildings aim for a balanced budget, so if yours shows a loss year after year, that should be a concern.

HAVE THERE BEEN ANY ASSESSMENTS?

Co-ops typically need assessments to pay for capital improvements or unanticipated expenses, like replacing a boiler, doing major work on an elevator or fixing the facade to comply with local regulations. “Try to find out what the assessment is being used for, and how long it continues,” Mr. Wolsk said, noting that longer-term assessments, payable in monthly installments, have become more common than single lump-sum payments.

WHEN IS THE MORTGAGE MATURING?

Unlike individual homeowners, co-ops don’t usually try to pay off a mortgage, because that would mean current shareholders were paying for something that would benefit future shareholders. So a large mortgage isn’t necessarily a concern. But you should pay attention to the interest rate and maturation date.

Arthur Weinstein, a real estate lawyer who serves as a vice president of the Council of New York Cooperatives and Condominiums, said a building’s mortgage should be evaluated in the context of economic conditions. “In a low-interest-rate economy like we’re in now,” he said, “you’d worry about a high-interest-rate mortgage that cannot be refinanced.”

If a mortgage is maturing soon, there will be expenses like legal fees associated with refinancing, but monthly payments may decrease if the new mortgage has a lower interest rate.

HOW MUCH IS IN THE RESERVE FUND?

The one item that even number-averse shareholders tend to look at is the amount in the reserve