Real Estate news

Price per Square Foot in a Home

The question I came upon this week, was someone wanting information on Price per Square Foot in Housing Values. I think that is an excellent question. So I thought I would share it with you also. Real Estate Agents and other Industry experts know about this and use this to determine listing price, estimated value, market value, selling price, and other factors .

Price per Square foot is usually referred to as Heated and Cooled Living Space. Not a Garage or an attached Storage room which is not Heated and cooled. It is not the Square foot under roof, it does not include porches. It is the heated and cooled area of a home ( Living room, Dining Room, Kitchen, Bedrooms, Bathrooms, ect.)

So when you hear or read under roof, that means everything under the roof, including overhangs and such. Which is a false price per square foot. But it does sound better when advertising, especially on a home with an exceptional amount of porch area or a huge oversized garage.

As a consumer, you may only look at the price of a home in comparing with the other homes you have seen. But as Real Estate agents and appraisers look at homes based on Price of Square foot in comparison as to what similar homes in the area sold for in the last few months.

Agents who is looking at certain areas, know the price per square foot average in a neighborhood. And know the average square foot home for that neighborhood as well.

Lets take for example one neighborhood has homes that range from 1600 - 1800 square foot in size. Now these homes are all similar in features. Now say the homes that have sold in this neighborhood in the last 3 months ranged in sales price from $105. - $110. per square foot. So an 1800 sq. ft home could have sold between 198,000 - 189,000. A 1600 sq ft home would have sold between 176,000 - 168,000. If I were doing a listing in this neighborhood, I would need to know the Square footage of the home to be sold, know how anxious the seller was to sell, and what condition the overall home was in compared to the other homes that sold previously, plus the desirability of the area to determine the price -(Something is only worth what somebody is willing to pay for it). Several Factors are involved in determining the price. It is not only about what Mr. Smith and Mr. Jones got for their home a year ago.

I hope I have answered some of your questions concerning this topic. If I have not, please feel free to email or call me, as I will be more than happy to help.

Thank You for Visiting.

Please check out my web sites

www.tricountyhomepages.com

www.LynnRawlinson.com

Lynn Rawlinson, Realtor, Associate Broker, ABR, CSP

Coldwell Banker Towne Realty

334-467-5727

FND14U@AOL.COM

lynn.rawlinson@tricountyhomepages.com