Final answer:
The National Association of Realtors dictates that square footage in residential sales should be reported based on heated and cooled areas, usually measured from exterior dimensions, while adhering to any local guidelines.
Step-by-step explanation:
According to the National Association of Realtors, square footage in residential sales should be reported honestly and accurately, reflecting all areas of the home that are heated and cooled. In measuring square footage, it's important to use a consistent method for all properties to ensure comparability. This often involves measuring the exterior dimensions of the home. However, standards can vary locally and by state, so it's important to check any specific guidelines that may apply in the area where the residential property is being sold.
According to national standards, square footage should be reported in residential sales using the standard measurement of square feet.For example, if a house has a total area of 2,500 square feet, it should be reported as 2,500 sq. ft. in residential sales.Using the correct unit of measurement, square feet, ensures consistency and accuracy in reporting the size of residential properties.