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$3 Million Dollar House Cheaper than a Studio Condo? Absurdity of Price per Square Foot

Does size matter?

Does Size Matter? Pull out your rulers, your tape measures, your sonic measurement devices and start doing some calculations.

When buying a home (or pricing your home for sale), the #1 criteria, as most everyone knows, is LOCATION. There's no dispute about that. What's next? How about size, condition, age, and amenities.

How much does size really matter?

Here's an example taken to the extreme:

There are two homes currently on the market in Old Town Alexandria -- one is a $3 million plus home with over 8,882 square feet of finished living space; the other, a studio condo priced at $209,000 and offering a mere 380 square feet (can you actually fit a bed? and a dresser?)

Do the Math!

Let's do the math!

HOME #1: $3,195,000 divided by 8,882 square feet =

$359/square foot

HOME #2: $209,000 divided by 380 square feet =

$550/square foot

Surprise the studio condo space is much more expensive!

Of course this is an absurd example, but it just goes to show that square footage is not always an accurate measurement when it comes to value unless all other criteria about the properties are similar.

For instance, the least expensive home on the market in Alexandria is priced at $105,000 and measures 1005 square feet. The most expensive home is 32 X more expensive at $3,350,000, but it certainly is not 32 times larger, offering just 5000 square feet.

I'd love to help you find a home in Northern Virginia whether you can survive in 380 square feet, or you want a little more room to stretch your legs.

CLICK HERE TO START YOUR HOME SEARCH TODAY

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Posted by Brian Block -- Northern Virginia & D.C. Real Estate on 06/13/2008 04:25 PM

Comments (14)

alexandria real estate, alexandria real estate blog, square footage, homes for sale in alexandria, northern virginia real estate

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14 Comments on $3 Million Dollar House Cheaper than a Studio Condo? Absurdity of Price per Square Foot

$550 per sq ft? that is kind of expensive...besides..who would want to live in a 380 sq ft home?? that would make me claustrophobic and not want to ever go home.

06/13/2008 04:32 PM

by n d (Naoma Doriguzzi)

Brian, Wouldn't folks know that the properties have to be similar before price per sq ft can be used as a pricing tool? It's sooooooo simple. But alas folks don't know and that's why the need someone that does. You for example!!! Can you believe we have homes in my market as low as $50 per sq ft? We work and live in different worlds.

06/13/2008 04:44 PM

by Bryant Tutas-Tutas Towne Realty, Inc

Cost per square foot can be deceiving but it is fun to compare the market for interesting comparisons.

06/13/2008 08:52 PM

by Terry Westbrook ~ Realtor(R) Grand Rapids Mi Ada/Cascade Real Estate (Five Star Real Estate, LLC Grand Rapids , MI)

NAOMA: $550/sq. foot is definitely expensive but not the highest by far. Yes, I couldn't imagine living in a 380 sq. ft. home, though my freshman year college dorm room was under 200 sq. feet, but didn't include the bathroom, kitchen, etc.

06/14/2008 06:36 AM

by Brian Block -- Northern Virginia & D.C. Real Estate (RE/MAX Allegiance)

BRYANT: Thanks for your comment. It is a basic requirement that you have to compare apples to apples and oranges to oranges. $50 per sq ft. is amazingly low!

06/14/2008 06:37 AM

by Brian Block -- Northern Virginia & D.C. Real Estate (RE/MAX Allegiance)

TERRY: Thanks for stopping by and commenting.

06/14/2008 06:37 AM

by Brian Block -- Northern Virginia & D.C. Real Estate (RE/MAX Allegiance)

This would be just the fun kind of exercise I can see myself doing some night when I'm too tired to blog or do anything constructive. Thanks for the idea!

06/14/2008 05:44 PM

by Margaret Woda, Maryland REALTOR (RE/MAX VISION)

MARGARET: I look forward to seeing your report.

06/16/2008 05:51 AM

by Brian Block -- Northern Virginia & D.C. Real Estate (RE/MAX Allegiance)

amazing...............the little things we don't normally think about.....

06/16/2008 09:51 PM

by Barbara-Jo & Bill - - Florida Realty Professional - AHWD (Charles Rutenberg Realty)

ditto....amazing, but i want to see your report too....

06/16/2008 09:59 PM

by Jack Climer Realty, LLC

BARBARA JO: Thanks for your comment.

06/17/2008 06:53 AM

by Brian Block -- Northern Virginia & D.C. Real Estate (RE/MAX Allegiance)

JACK: I appreciate you stopping by.

06/17/2008 06:53 AM

by Brian Block -- Northern Virginia & D.C. Real Estate (RE/MAX Allegiance)

Wow, I can not imagine living in 380sq. ft., my bedroom is about that size!! I certainly couldn't LIVE there!

06/17/2008 03:20 PM

by Mike Slager - Holland, MI Realtor (Greenridge Realty)

MIKE: Me neither!

06/17/2008 04:55 PM

by Brian Block -- Northern Virginia & D.C. Real Estate (RE/MAX Allegiance)

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