Where does that “price per square foot” come from?

Pricing properties isn’t as simple as one may think. Taking the sold price and dividing it by the size of the home will give you a figure, but this figure won’t give you the full picture of what you’re paying for or what you should be selling for. All these factors go into this magical “price per square foot” number:

  • One-story home versus two or more stories
  • Length of time on the market (current market conditions are key in pricing of a home)
  • Seller concessions
  • Condition of the property relative to age
  • Size of the land
  • Seller motivation to sell (i.e., foreclosure, short sale, etc)
  • Location of the home (i.e., view, utility easements, corner lot
  • Superior/inferior features as compared to other properties
  • Amenities that are unique to the community or home (pool, gym, parks, etc)

Homeowners can add value to your home by making improvements, whether it be a feature or improving on a necessity such as replacing the roof, but these additions are not necessarily a dollar for dollar value. Improvements can add to the value per square foot, but there is no simple calculation for this, all the above factors play a part. Consider whether the improvements you make are for yourself or the next buyer. If it is for yourself, you can enjoy it regardless of the value return! In the end in order to get the most value for your home when the time comes to sell or buy, you need a Qualified Professional Realtor who understands pricing and market conditions.

What's it worth-

 

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