What's the cost per SF for that home for sale?
Juli has done a great job breaking down one of my pet peeves. $perSqFt or Dollars per square foot is like comparing tomatoes. Roma tomatoes are often the least expensive while ripened on the vine tomatoes are more expensive and heirloom tomatoes are usually the most expensive, but they are all tomatoes right? One may be two to three times the the price of the other.
While this is one measure, it is not the be all end all when evaluating values.
What's the cost per SF for that home for sale?
I hear this question often as some people get fixated on the cost per SF when looking to buy or sell a home. The fallacy with relying SOLELY on the cost per SF is that it doesn't take other factors into place: lot size, pool, garage count, updating/upgrading, and overall condition being just some of the other factors to consider.
Recently, a buyer stated, "That home is the second highest priced home per SF and it's obviously priced too high." So, I did some further searching. The home he was interested in is UPGRADED with new flooring, cabinets, countertops, plumbing fixtures, and freshly painted inside and out. It has a pool, a 3 car garage and is on a corner lot with views of the area mountains.
The other comps in the subdivision to which he was comparing the cost per SF had only a 2 car garage, some had no pools, most had homes on all sides and immediately behind, most were not updated/upgraded.
While the cost per SF at first glance did appear high, there are so many other factors to consider when deciding if the cost per SF is out of line. Don't just look at the numbers - look at ALL factors. Have your knowledgeable Realtor® spend a few minutes with you deciphering all of the factors in home pricing.
When you know all of the facts, the cost per SF may have little meaning when deciding whether a home is priced correctly.
Scottsdale and Cave Creek Real Estate
Juli Vosmik
Dominion Real Estate Partners, LLC
480-710-0739
Helping you make informed decisions whether buying or selling homes in Scottsdale, Cave Creek and north Phoenix Arizona. I know the area - I live here.
A portion of all sales is donated to the various animal rescue and humane societies.
AZ license SA582226000
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