A floorplans supplier which claims that its products are accurate to the millimetre has said that property mis-measurement and over-valuation could be the next PPI scandal.
James Marshall, founder and CEO of Spec, which also supplies photography and EPCs, claims that mis-measurement is rife – and that nearly half of buyers would want compensation if they purchased a property on the strength of a floorplan which turned out to be inaccurate.
Marshall claimed that property measurement in London is so inaccurate that properties have been mis-sold by an average of £33,800.
Earlier this year, his firm compared measurements and plans of 304 properties in London with its own technology.
Spec says that it found one in eight had a discrepancy of at least 100 sq ft, while the average discrepancy across all properties was 54 sq ft.
In most (60%) cases where there was mis-measurement, the size of the property was over-stated.
His firm went on to commission a YouGov poll of 2,100 UK adults in July.
Nine in ten considered property size to be important when buying a home, and 89% said the size had a bearing on the price.
Nine out of ten considered the accuracy of the information provided by estate agents to be important and 92% believed agents should be required by law to provide accurate measurements.
Almost half (45%) of respondents said that they would expect compensation for moving into a property with an inaccurately measured floorplan.
Marshall said that proposals put forward by the Regulation of Property Agents (RoPA) working group “ignored” the issue of mis-measurement.
Marshall was specific in his claims of mis-measurement, seemingly hitting out at competitors who also supply floorplans and photography, but also critical of agents who use mis-measured floorplans in their marketing.
He said: “We know that measurements are undertaken by photographers with neither the necessary training nor the required equipment.
“These measurements are then included in property reports and promoted on property listing sites on a price per square foot basis, despite admitting in their fine print that the figure indicated should not be used for valuation purposes.
“This means that customers are purchasing properties based on incorrect measurement data, which then impacts EPC ratings, Stamp Duty and ultimately the cost of purchasing, owning and running a home.”
Marshall said: “It’s incredible that the biggest consumer scandal in this country has been routinely ignored by both government and regulators.
“Given the importance of property size, standardising the way homes are measured should be a key focus for both the industry and consumers alike.
“Consumers are being routinely misled across the industry.”
He claimed that as the PPI scandal ends, the one that is on the rise is mis-measurement and over-valuation.
His own firm says it uses software and laser equipment that complies with RICS requirements.
Spec launched last year and has been promoted amid PR that has made similarly vocal claims before.
Properties being routinely mis-measured is ‘hidden scandal’ in property market
We have all bought property, and (ignoring the usual disclaimer over measurements in an agents particulars) a person buys a property based on walking though it and being delighted with it. The most a buyer might be annoyed with it getting to the property and finding out the particulars had wrong measurements.
Any floorplan software may be as accurate as a tape measure – but not as cheap (99p B&Q) – but the headline of the article is not correct.
‘PPI scandal’ – [emoji slow headshake]
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Very correct and a Sales pitch comes to mind
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Bruce brothers know full well next ppi is payanyway customers who didn’t sell.
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TwitterSalisPropNews
“…but the headline of the article is not correct.”
Sorry – the headline is correct.
It is a claim that has been made – which is exactly what the headline states.
Unless, of course, you have proof that such a claim has not been made by Mr Marshall…
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‘Caveat Emptor’? The fundamental principle of estate agency. If the buyer is concerned then they will contract their own company to compile the floorplan, if that company misrepresents them (as the client) then that’s the claim.
I wish the chap well, but trying to get business via scaremongering is not in my book befitting of industry neither is media that reports it without qualification.
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‘A floorplans supplier which claims that its products are accurate to the millimetre has said that property mis-measurement and over-valuation could be the next PPI scandal.’
A floor plans supplier said that? Really? No, I can’t believe they said that. Why would they say that? I am truly amazed they would say that. Are they flogging something? Oh, NOW I see why they said that. Silly me.
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I feel like he’s trying to make an issue where there is no issue. Most estate agency floor plans don’t have measurements on them and have the usual disclaimer that they are for illustration only. Some agents put the room measurements in the description. I hope he does well but personally I just don’t think this is a massive issue to buyers. I suppose its a bigger issue to those who buy off plan to a particular spec and the sizes are wrong upon completion of the build.. Outside of that. We’ll, a buyer can always do their own measurements on a separate appointment if they like ♂️
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Of course he is. Without an issue, there are no sales of his product.
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May have a case with off plan, where buyers are often paying on price per square foot basis.
Other than that, seems like drivel.
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Aye, but then you should be using architect measurements? With one massive disclaimer as often the unskilled labourer doesn’t follow the plan.
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Well Caveat Emptor doesn’t really exist since the CPRs came in back in 2008. However Agency Insider is right in that buyers inspect the property and check it meets their needs. I once came across a complaint that went to TPOS where the seller claimed from the agent they bought from that the FP was wrong and that meant the £/m2 was out. The claim was that he’d had a new valuation based on the old floor plan at £900k but new correct FP downvalued that to £750k. TPOS found he never ‘had’ the higher value so couldn’t claim the missing £150k but also that he was happy the property met his needs originally and that if £/m2 was his sole requirement he should have satisfied himself independently.
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What a load of rubbish! “Marshall claimed that property measurement in London is so inaccurate that properties have been mis-sold by an average of £33,800” Since when did we sell and buy property at £’s for sq m? “He said: “We know that measurements are undertaken by photographers with neither the necessary training nor the required equipment” How very rude! Or maybe he’s a bloke who can’t multi task? “This means that customers are purchasing properties based on incorrect measurement data, which then impacts EPC ratings, Stamp Duty”. Really… He should know that Stamp Duty is not calculated on measurements and Energy Assessors are obliged to measure themselfves, not rely upon 3rd party measurements!! Surprised such tosh is worthy of reproducing Roz!
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Good point Revilo. EPC measurements are based on overall circumference to achieve overall sq size, not room size. Never come across a residential buyer more interested in overall to actual rooms sizes.
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Woodentop, yes, width x depth x height to give a cubic capacity. Most are measured externally and the wall width noted and taken into consideration along with type and age of construction. Some, like apartments, have to be measured internally. Nothing whatsoever to do with room sizes!
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I always use internal, those drain pipes and fences always get in the way, parictulary when its raining, lol.
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agents don’t value properties on square footage, unless a new build. so it had no impact on our valuation so the line below is incorrect.
“These measurements are then included in property reports and promoted on property listing sites on a price per square foot basis, despite admitting in their fine print that the figure indicated should not be used for valuation purposes.
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So this begs the question is he saying buyers are adding up all the room measurements to see if they have lost out on value. That wil be a first for a buyer and seeing as I do not know a single agent measure cupbaords, stairs, WC’s, the more one read this James Marshall claims, the more holes are appearing.
Self promotion comes to mind which is backfiring by trying to ridicule others.
Room by room properties are not square and have irregular shapes and some with permanent fittings. Therefore one agent will measure differently to another but should include any caveats e.g. excludes alcove, bay, wardrobe depth etc. and that they are for guidance and not to be relied on accuracy, which should be done by the buyer if that criteria is required. This leads to …
A floorplans supplier which claims that its products are accurate to the millimetre has said that property mis-measurement and over-valuation could be the next PPI scandal.
This claim is not possible to make and is an own goal for litigation as he seems to infer a guarantee!
RICS bible confirms there is a tolerance of accuracy and point of measurement, which for years was used as a foundation for investigation by Trading Standards. The only advice I can suggest is never use a sonic measuring device, they look like lazers with a lazer dot locating point, but are not accurate. Set-up calibration marks (with a tape measure) in your office to regular check the accuracy of your lazer.
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Bring back PMA.
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YAWN – if there was a genuine risk we would just stop adding measurements to details – simple! If someone views a house then realises the EPC rating isn’t as good as they thought they WILL still buy it – the same applies if some of the rooms are three inches smaller than the agent’s measurements.
This “article” is basically an advertisement
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Check their product they are trying to smoke screen sell via this article its on instagram @trustspec …. basic floor plans and photos………………………………..unlikely to pass muster at anywhere decent.
On Dragons Den this offering would be labeled by Peter Jones as an invention to solve a problem that doesn’t exist…(like a self cleaning toilet brush). Deborah Meaden would then scoff, and offer to supply tape measures through her DIY store to solve at 0.1% ofr the cost….
Nearly all residential properties aren’t sold in this fashion as we all know. The mortgage lender in most instances will send an adult (RICS) to measure up if required and confirm values via comparables. Most buyers will employ an adult (RICS) under caveat emptor too for the same purpose….
UNLESS you’re buying a (newly built or 2nd hand) property over the phone without inspection or a survey based only on £ per square meter calculation I would suggest that this is not worthwhile. Perhaps has more validity for commercial properties.
Not a great marketing pitch for hardly a great product….. like the self cleaning toilet brush I suppose
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“A floorplans supplier which claims that its products are accurate to the millimetre has said”… a floor plan provider that make such claim clearly don’t know what they are talking about and don’t have a clear understanding of tolerance and accuracy. Full stop.
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Shot himself in the foot with his own quote!
“These measurements are then included in property reports and promoted on property listing sites on a price per square foot basis, despite admitting in their fine print that the figure indicated should not be used for valuation purposes.”
Caveat Emptor
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“A floorplans supplier which claims that its products are accurate to the millimetre…”
So why then do their floorplans carry a disclaimer stating
“If you intend to rely on any measurement in a transaction you should perform your own checks.” ?
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Is this actually true or satire? Surely satire in light of the above source article?!
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Have a look for yourself – this is the first one I found:
rightmove.co.uk/property-to-rent/property-73407451.html
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