These guidelines say that the square footage should only reflect the living portions of the property, therefore garages, unfinished rooms such as attics or workshops, screen porches, balconies, and basements are often excluded from the total. However, it is not unusual for realtors to list an home with more square footage than its actual size to make it seem larger than it is. Also, buildings with more than one floor will usually have a higher ratio of bedrooms to bathrooms, which can cause them to appear larger than they are. In conclusion, yes, builders do lie about square footage. It is common practice for them to add on to their homes, either by building up or out, so you will likely be able to find something closer to what you want within your budget. If you do find a house that seems like a good deal but it has less square footage than others in the neighborhood, ask yourself why this house was sold for less money if it was actually smaller. There could be any number of reasons, but most commonly it is because it didn't meet the needs of the buyer or they were waiting for the market to go down before they sold it. Overall, using these three tips will help you avoid being taken advantage of when buying a house.