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My Two Cents on Price Per Square Foot


My Two Cents on Price Per Square Foot

When helping a young couple purchase a home recently, I was in awe of a spreadsheet that they had produced that anyone at Goldman Sachs would cherish. It included every possible stat that one could dream of when considering the pros and cons of a home. One of the fields, however, was “price per foot” and, if I am being honest, it gave me pause.

It seems that the real estate world has become obsessed with price per square foot (PPSF), but I am a here to tell you something that you already know. When comparing apples to apples, not all square footage is created equal.

What if the comparable property has a pool or a larger lot size? Value must be given to this and the land which is usually the most expensive factor when purchasing a property. And what about smaller homes being given a high PPSF by appraisers due to the diminishing returns on bigger homes? Size matters!

PPSF needs to be evaluated, like most things in real estate, on a case-by-case basis with clear specifications. I prefer evaluating the quality per square foot for intelligent pricing and valuation. One size does not fit all and when pricing your home, it is essential to get the price right from the start. 

Christy BerrySeptember 17, 2019