“What’s my property worth?” is the number one question asked by our sellers.
You’ll find that many real estate agents rely solely on the concept of price per square foot to determine property value. It’s certainly a measuring tool that’s easy to use, and has frequently been cited since the rise of real estate values several years ago.
However, the problem with using price per square foot as your only measuring tool to determine value is that it’s rarely accurate in determining the true value of a property. It’s more accurate in large home developments where similar homes were developed at the same time, built by the same builder on comparable lots, and with similar amenities. With more unique properties, price per square foot is rarely an accurate tool for appraising value, but it’s definitely one tool to have in your toolbox.
For example, Premiere Estates recently valued a property in an affluent area of Southern California, and in the process determined that there were a total of 57 variables to consider. Outside of price per square foot, those factors included view, proximity to the beach, style, age, upgrades, and functionality. On the other coast, our appraiser in the Hamptons area tells us that too large of a home can actually detract from its value after it exceeds a certain size…a home’s functionality can become useless if the design isn’t properly thought out.
Appraising and valuing a home isn’t a one stop shop – it doesn’t start with price per square foot, and it certainly doesn’t end there. Analyzing price per square foot is just the beginning of your valuation process. Call us today…we’ll help you with the valuation of your home, or recommend an appraisal expert in your area who will consider all of the relevant factors.