I have to agree with the previous statements about measurments coming from public tax records. Regarding taxes being grossly underestimated -- the process of buying a house can be exciting, and during the excitement, we sometimes forget to ask (or don't know to ask) our agent show us in writing where he/she gathered those figures from. Hopefully it was just an honest mistake, as opposed to a dishonest one.
To address your neighbor's issue -- I would expect to be "fired" for making over 15 spelling errors on a listing, regardless of the dollar amount.
If you can stay in your home at this time, it would definitely do so! I don't know the Buffalo Market, but it appears that many places around the country have seen the worst they're going to see, or are just about there. If you can stick with it, I'd ride the appreciation wave we'll likely start seeing soon.
Just lazy.....in my area, this information comes from the tax records directly...so those mistakes shouldn't happen. But spelling, grammar, punctuation etc....yep, lazy agents.