Price per Square foot question

Style, condition, curb appeal, was the sq. footage origional or an add on, age of the homes, extras and the ages of things. I live in an area with older homes with no subdivisions so sq. ft. is always less of a factor unless you know the homes. New agents always have a hard time with this.

The price per square foot is always larger when there is less home to sell.  The more square footage the less you can ask or the price would get out of control.  I always take into consideration add-ons or room conversions because if they were done without permits technically they can't be added in the square footage.  (They usually are but shouldn't) 

There are many things that determine price per square foot.  In your scenereo these 2 homes were on the same street and the only difference described were the sizes.  Some important variables are still missing year built, condition of the homes wear & tear - well used or recently remodeled or new upgrades, the home's amenities i.e. granite counter tops or Formica?  carpet or marble tile flooring etc.  As a builder I know that the smaller home cost more to build because it's like anything else - the more quantity of materials or supplies needed usually cost less.  I call it the "Costco" concept.  Buy in bulk & you will save. If it is a 2 story house there's even more savings because foundation is the same as a one story assuming similar dimensions of the "foot print" yet you have to 2floors of living space.  This holds true also for the roof.  One roof to cover 2 floors, one drive way to service more sq-ft, & the list goes on.  This is my short answer.

Rooms with plumbing (kitchens, baths and some laundry rooms) cost more to build than just a bedroom or living room. As homes get larger, the additional square footage is usually a bedroom or family room, so when that is factored in it results in a lower price per square foot.

Where two homes are the same floor plan, the difference may be caused by lot premiums; a pool, spa or other outdoor amenity; or building materials (granite vs. laminate counters, custom cabinets, etc).

Great answers!  There are so many variables!

I work in a resort area where we see a lot of agents and buyers asking for the price per sq ft - at one time you could almost tell how updated or new a home was by this number - now with the market flooded and the appreciation we saw that some are still thinking is still gaining it varies greatly.

There are so many variables that go into a home. Even in your situation I am sure even though each home is similar, there are many variables on why one home sold higher than the other.

Do not rely on price per square foot. It is totally inaccurate.

 

I've had buyers with "spread sheets" that they would plug their info into to figure out the best price per square foot, like they were buying a pound of flour at the country store.  I don't get it.  If a house was $5 less per square foot and filled with 28 cats would it still be a bargain. 

Some people are just number crunchers. 

In my experience, variances in price per square foot are caused by:

1. Condition
2. Additional amenties (pool, spa)
3. Location (cul de sac, corner, green belt)
4. Sellers attitude
5. Improper comps by listing agent

It is a dangerous metric in the wrong hands (buyers) without full understanding