Here at For It’s Worth Appraisals, we offer real estate counseling services to developers, homeowners, operators, and investors. One piece of advice we give when it comes to selling a house is not to solely rely on the price per square foot.
It is a common mistake, and here are six reasons why:
It oversimplifies. The metric of formulating a price per square foot of a home, solely, oversimplifies the complex process of determining the home’s value. There are other critical factors to consider, such as the home’s location, age, condition, and any unique features that also impact its value.
Location, location, location. As the overused saying here goes, and what we’ve mentioned above, a home’s location is one of the most important factors in the real estate industry. If two homes with the same square footage live in two different neighborhoods the price of each home could still drastically vary. Also imperative to consider as it connects with a home’s location is its proximity to schools, area amenities, and more.
Overall condition, upgrades and unique features. More factors that appraisers take into account beyond the price per square foot are whether or not a home is well-maintained, features upgrades or renovations, or boasts unique features, such as a swimming pool or other backyard amenities, a large yard, or customized architecture or add-ons.
Current market trends. The price per square foot of a home heavily relies on current market conditions, which often fluctuates – especially nowadays. This is why a comparative market analysis (CMA) is conducted by one of our professionals to factor in these trends for a more accurate pricing strategy.
The homebuyer’s perspective. A buyer’s perception of a home most definitely influences the value of a home more than just its size. They look at functionality, high-end finishes, curb appeal, and a desirable neighborhood.
Inaccurate comps. If a professional in the real estate industry compares homes purely on a price based on per square foot, it could lead to misleading conclusions. For example, a smaller home with higher-quality finishes might appear overpriced compared to a larger, but less appealing home.
To price your home accurately, consider the comprehensive approach we use at For What It’s Worth Appraisals that includes a detailed analysis of the local market, the condition of your home, its unique features, and current market trends. We can provide valuable insights to ensure your home is priced competitively. This holistic approach will likely result in a quicker sale and a better return on your investment. If you need an appraisal, contact our professional appraisal team to schedule an appointment at 843-808-1533.
