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Not All Square Footage is Created Equal

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Real Estate Agent with Certified Realty Services BRE# 00572654

Not All Square Footage is Created Equal

Here's my conversation with a prospective seller last night.  It was the second appointment of a two-step listing approach. We had a comfortable rapport and I had already reviewed pictures and MLS details of comparable homes. 

We were talking about fair market value and a possible listing price.  My estimate of value was nearly 10% lower than their estimate and the estimate of at least one of two other agents they're interviewing. 

The home has been added onto and is located near two different subdivisions of larger homes.

Me:  "Yes Mr. and Mrs. Seller I do understand that your home has roughly the same square footage as these comparable homes, but there's a difference.  The comparable homes you're focusing on were originally designed and built as 2,200 - 2,400 sq. ft. homes.  Your home was originally built with 1,450 sq. ft. and was added onto to total 2,280.  Yes, the total square footage of your home is about the same, but most of your rooms are smaller and your floor plan is a little unconventional which affects the market value."

They didn't seem to understand that explanation.  From their expressions you'd think I was speaking Uzbek. 

In most cases--not all but most--added living space doesn't add to the market value as much as the original space does.  Very often there are design and floor plan peculiarities that are viewed negatively in the market place.  Not all Square Footage is Created Equal.


Lloyd Binen

Realtor/Broker/DRE 572654

Certified Residential Specialist (CRS); Graduate, Realtors Institute (GRI)

Certified Residential Services

19200 Shubert Drive

Saratoga, CA 95070-4046

408-373-4411; e-mail

Comments (6)

Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

It is true that that functionality of a home plays a big role in determining value.  Square footage is not the only factor.

Jun 08, 2012 06:37 AM
Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley Realtor since 1976; 408-373-4411

Thanks Chris Ann and have a good No VA weekend and don't work too hard.  I'm not.

Jun 08, 2012 06:56 AM
Michael S. Bolton
Michael S. Bolton,Inc. - Zimmerman, MN
MN Appraiser

So true Lloyd, especially if the SF was added over a garage, or as you say their addition creates some type of obsolescence.

Have an AWESOME weekend!

 

Jun 08, 2012 07:07 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

And Not All Realtors Are Equal Lloyd, And That's Why Your "Uzbek" Language went over their heads!

Enjoy your weekend!

Jun 08, 2012 07:32 PM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

I wouldn't have realized this prior to my recent move.  The new house is almost exactly the same sq footage as the old house.  Two completely different floor plans.  This one is so much better for our current lifestyle and needs.  It's amazing how much more space it feels like we have now!

Jun 10, 2012 07:04 AM
Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley Realtor since 1976; 408-373-4411

Michael, thanks for coming by. 

Larry and Sheila, Yeah, you're the only ones that commented about the Uzbek.

Sharon,  Hi!  I guess that's a good design.  Thank you.

Jun 10, 2012 03:10 PM