What’s the best indicator of your homes value?
Each month we publish a variety of real estate statistics which include the average price per square foot. Most homeowners love to keep track of the average price per square foot of homes in their neighborhood. This figure can provide a guesstimate as to your home’s value, similar to looking at online home evaluations such as Zillow. The problem with only looking at the average price per square foot is that everything about the property is summed up in this one analysis. This calculation does not take into account, location, floor plan, condition, upgrades, lot size, etc.
Price per square foot can be a good indicator of value when the comparables are very similar to yours. But when you are comparing a home on a 5,000 square foot lot to one on an acre, or a home across the street from the freeway compared to one on a cul-de-sac, this calculation will not be an accurate assessment of market value.
Why do smaller homes typically have a higher price per sq. ft. than larger homes?
A home double the square footage is not necessarily worth twice as much as the smaller home. Lot size and amenities such as garages are not factored in when determining the average price per square foot of living area. Kitchen and baths are the more expensive rooms in a home; by making the home larger you often are mostly increasing the number of the more affordable rooms.
The easiest way for you to determine your home’s value is to contact Phyllis@RealtorHarb.com.