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Thoughts about price per Square foot in Glacier View Meadows

By Mary Douglas

Real Estate Agent with United Country Ponderosa Realty, Red Feather Lakes, Colorado

May 22, 2010 12:21 PM

The other day a client asked me if I could run an average price per square foot for properties in Glacier View Meadows; one report for private sellers and a separate report for foreclosures.

Of course, I could do that and it wasn't very difficult.

But, I hesitate to throw numbers out there when they have no merit.

Price per square foot might be useful when comparing new homes in a Subdivision where there are 5 or 6 similar floor plans; but averaging all the different types of homes in Glacier View Meadows with very different views, finishes, acreage and types of construction based on price per square foot doesn't provide any useful information.

It's just a number.

The reports he requested showed the difference between the private sales average price per sq. ft. at $121.14 and foreclosure average at $72.12 - So what?

Are you confused about price per square foot, too?

We can take that number over a period of time and use it to see if home costs are rising or falling, but one snapshot in time tells us very little.

When trying to determine value, we need to dig down deeper into the details and compare apples to apples, log homes to log homes, and stick built to the same. General averages don't tell us what we need to know. They don't tell us if the home is a "great deal" or not.

Also, smaller homes tend to have a higher price per square foot than larger ones.

One thing is for certain: you cannot simply take the average price per square foot, multiply it by the area in the home you want to purchase and make an offer. You need a Comparative Market analysis and a Real Estate Professional to help you determine market value

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Mary Douglas, your Mountain Broker-Associate and REALTOR®

United Country Ponderosa Realty, Red Feather Lakes, CO

www.marydouglas-redfeatherlakes.com ---800-531-2195

"A Day in the Mountains will always soothe your city soul"

The information contained in Mary's blog is deemed reliable but is not guaranteed, and the opinions and views expressed in these articles are solely those of the author.

_________________________________________

avoid foreclosure: call the Colorado Foreclosure Hotline 1-877-601-HOPE

HOTLINE WEBSITE: ColoradoForeclosureHotline.org

Email me with any questions about Red Feather Lakes or Livermore, Colorado property.

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Lou Ludwig

Ludwig & Associates - Boca Raton, FL

Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Mary

Price per square foot does not give the customer the true value of a home, a home and it's value are unique. Buying a home based on the price per square foot would be like buying a car by the pound.

Good luck and success.

Lou Ludwig

May 22, 2010 02:45 PM

Myrl Jeffcoat

Sacramento, CA

Greater Sacramento Realtor - Retired

You make really good points Mary! I'm aware of neighborhood, where a foreclosure house sold for about $69.00 a square foot, compared to the approximately $110,00 a square foot of a traditionally sold house. Although it was the same builder, the foreclosed house had been completely stripped of its kitchen and bathroom fixtures, and even the copper wiring had been taken, along with the light fixtures! It had also undergone significant vandalism!

May 22, 2010 03:51 PM

Debi Boucher

Real Estate Showcase Photography - Woodland Park, CO

"Realtor Showcase" - Real Estate Photography/Virtual Tours

I always hated it when i was working with buyers that shopped that way. In our areas - the is just too much variation - almost evverything here is custom.

May 22, 2010 04:03 PM

Robert Vegas Bob Swetz

Las Vegas, NV

Hello Mary and we agents need to be careful!

May 22, 2010 04:22 PM

Tammy Lankford,

Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA

Broker GA Lake Sinclair/Eatonton/Milledgeville

A builder we've represented for years gets ask what the cost per sq. ft. is ALL the time. Of course the answer is "depends on what you want between the walls".

May 22, 2010 04:40 PM

Cherise Selley

Selley Group Real Estate, LLC - Colorado Springs, CO

Colorado Springs Realtor

Mary,

Good insights about the ambiguity behind square footage pricing. These all will vary depending upon builder's construction prices and the quality of upgrades for the home. Have a good Sunday.

May 22, 2010 06:18 PM

Paula Swayne

Dunnigan, Realtors, Sacramento (916) 425-9715 - Sacramento, CA

Realtor-Land Park, East Sac & Curtis Park -Dunniga

Hi Mary!
Your speel could have been mine! In the older homes that I specialize in, price per square foot is useless. Every single home is different. They have been remodeld well, and remodeled poorly. They have great floor plans and choppy floor plans. They have quality remodeling and Home Depot remodeling. They are on a great street or a busy street. When people ask me for this, I explain that unless we are looking at a subdivision, it means nothing.

May 22, 2010 07:01 PM

Melissa Zavala

Broadpoint Properties - Escondido, CA

Broker, Escondido Real Estate, San Diego County

In more rural areas, it is definitely not quite as easy to establish value than in the densly populated areas where we just compare apples to apples every day of the week. Nice idea for a blog post.

May 23, 2010 02:45 AM

Adam Malachi

A 2 Z Realty LLC - Castle Rock, CO

QSC,CDPE,CIPS,CNE,CRB,CRS,GRI,MRE,SFR

Excellent post! I agree with Melissa comments above! Beautiful picture!

Thanks for sharing.

Adam

May 23, 2010 05:37 AM

Sheldon Neal

Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ

That British Agent Bergen County NJ

...love Tammys response above.

I have never given a price per sq ft analysis ! With so many different styles layouts, updgrades these days, it just seems rather a gamble !

:o)

May 23, 2010 02:53 PM

Dorie Dillard Austin TX

Coldwell Banker Realty ~ 512.750.6899 - Austin, TX

NW Austin ~ Canyon Creek and Spicewood/Balcones

Hi Mary,

With all the engineers in Austin..price/SF is a big item of discussion! I really like Tammy's response and will use that one! Single story homes here are usually always higher price/SF because they are in demand and because they are more expensive to build (the footprint is bigger and the post tension cable slab is larger thus resulting in higher building costs). The 2 story homes have a smaller footprint thus it is cheaper to add a second story. Comparing like upgrades, #bed, #bath ,#garages all are key in getting a good comparison..can be subjective!

May 23, 2010 03:33 PM

Jennifer Fivelsdal

JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY

Mid Hudson Valley real estate connection

Mary that is so true. Price per squate foot makes most sense when comparing the same type of homes in a subdivision. I was a bit amused by you not just willing to throw numbers out there but instead you gave a great reason why such numbers might not be that useful.

May 23, 2010 04:41 PM

Rich Cederberg

eXp Realty - Albuquerque, NM

eXp Realty Agent Albuquerque

Mary, You are right, of course, price per square foot is not the best way to compare properties unless you are in a subdivision with many good comparables. And a good comp means same builder, floorplan and upgrades.

Consumers really like the price per square stat just like they like Zillow Zestimates-until you educate them.

May 24, 2010 06:42 AM

Craig Rutman

Helping people in transition - Cary, NC

Raleigh, Cary, Apex area Realtor

Square footage numbers are only for tract homes. Custom homes and unique homes/ properties should be compared only to similar homes and not based on square footage.

May 24, 2010 08:17 AM

Mary Douglas

United Country Ponderosa Realty, Red Feather Lakes, Colorado - Red Feather Lakes, CO

REALTOR, Red Feather Lakes, Colorado

Thanks Jane, I understand the price per square foot concept --- but to apply it anywhere, where every home is different just doesn't make any sense.

Hi Toula, I think you are right - extreme caution is required

HAHA! Lou, I got a chuckle out of the idea of buying a car by the pound! Good answer!

Hi Myrl, I think the foreclosure price was too high :-) LOL You also make an excellent point about same builder, etc...different condition

Hi Debi, It's definitely not a good way to shop in custom areas, and certainly an average would not help at all, I agree.

Hi Bob, We do need to be careful, you're right. :-)

Hi Tammy, I think that's a GREAT truthful answer :-)

Hi Cherise, That's so true, a lot of people who want to know price per acre, too - but each lot is unique.

Paula, I totally agree, it really doesn't mean anything when there are so many different variables.

Thanks everyone, for your thoughts on it!

May 24, 2010 12:11 PM

Mary Douglas

United Country Ponderosa Realty, Red Feather Lakes, Colorado - Red Feather Lakes, CO

REALTOR, Red Feather Lakes, Colorado

Hi Melissa, Some days I think I would like to work where there are more apples ! LOL

Thanks Adam, I appreciate it.

Hi Sheldon, I hear you, I think it is quite the gamble!

Hi Dorie, you are right about construction costs being higher on the ranch style homes and if you have several comparables I can see where the equation may be helpful.

Hi Jennifer, I agree, same type of home, same finishes, same subdivision--it make more sense :-)

Hi Rich, Oh no not a zestimate! :-) You are right, we do need to educate; people get hung up on a lot of useless numbers you make a good point.

Hi Craig, you summed it up in one easy sentence. Thanks!

I'm glad you all stopped by, thank you!!

May 24, 2010 12:52 PM

Lisa VonBargen

Photography7522 - Estes Park, CO

Estes Park Real Estate Photographer

Great post, Mary! Price per square foot does have merit in a homogenous neighborhood, but in the mountains, all bets are off. In Estes, like Red Feather Lakes, we have a tiny old cabin on huge acreage..price per square foot is meaningless. It also does not take into consideration a mountain view or location by a stream, two amenities that are very valuable here but difficult to quantify.

By the way, it's snowing here. On the last Monday of school.

May 24, 2010 01:03 PM

Mary Douglas

United Country Ponderosa Realty, Red Feather Lakes, Colorado - Red Feather Lakes, CO

REALTOR, Red Feather Lakes, Colorado

Hi Lisa, Thanks, isn't that the truth!? There are too many variables and snow in May should add a premium to our mountain communites ! LOL Hope the winds didn't blow you away yesterday! I'm looking forward to a nice warm wonderful weekend, all ready!

May 25, 2010 06:24 AM

Bruce Walter

Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

Hi Mary!

I enjoyed your post and all the comments about the pitfalls of the consumer basing a decision on a home based on some square footage numbers without the proper perspective. I might add it is important for the agent to acutally measure a new listing and not go by the recently expired or sold MLS sheet data. Sharon and I just listed a small national home under 1000 sq ft and by taking the time to measure we are now well above 1,000 square feet and will show up in MLS search requests over that landmark.

Just curious, is that a view of the "Always Winter" or "Daddy" range above?

I had an idea-you could always buy the house next door for your daughter and have those gradkids next door all the time!

May 28, 2010 12:55 PM

Mary Douglas

United Country Ponderosa Realty, Red Feather Lakes, Colorado - Red Feather Lakes, CO

REALTOR, Red Feather Lakes, Colorado

Hi Bruce, Good point about measuring. To date, I haven't done a lot of that. I have had builder's plans, appraisals, and assessors records for total square footage, and have only measured one house, but then haven't listed as many houses as I have vacant lots (yet)!

That is the Mummy Range. ;-) I like your idea about the house next door, they would be the best neighbors of all ! Have a great weekend! Thanks Bruce!

May 28, 2010 05:13 PM