What’s the best indicator of your homes value?
Each month we publish various real estate statistics. They include the average price per square foot and average selling price. 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. It is 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 analysis. This calculation does not consider 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. However, when comparing a home on a 5,000-square-foot lot to one on an acre or a home across the street from the freeway to one on a cul-de-sac, this calculation will not accurately assess market value.
Why do smaller homes typically cost more per sq. ft. than larger homes?
A home with 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. Kitchens and baths are the more expensive rooms in a home; by making the home larger, you often increase the number of more affordable rooms.
The easiest way for you to determine your home’s value is to contact [email protected].
