You work with a real estate agent in the area. Since you are ready to put in an offer on the house, you want to see what has sold in the area, for how much and in what time frame. You ask your agent to provide you with important information so that you can make an intelligent and educated offer on the property.

Your real estate agent pull up the market activity. You saw the numbers. You have some information to digest, but is it the right information you could make a reasonable judgment on?

So many times, a buyer ask for a price per square foot. They multiple that number with the square feet of the house. They come up with a number. The answer is No, No, No. That is NOT how you come up with a number of how much the property is worth:

Here are more than just square feet you need to consider:

• What structural features are in the property? Does it have a media room complete with media equipment? Does it have a gameroom? Two or three car garage? Surely a house with 3-bedrooms is valued differently with a house with 4-bedrooms and a study.
• What features are offered in the house? Is it fully decked out with top of the line custom cabinetry, stainless steel appliances, granite countertops, double convection ovens? Is it hand-scraped hardwood floor? Complete outdoor living package with pool and spa? Or is the house with laminate flooring, laminate countertops and worn-out carpets?
  You would hope the these two houses (even if it is the same floorplan) would not sell for the same price. But if you had asked your Realtor(R) for just how much this neighborhood has been selling - $100/ square feet does not mean anything.
• Is the house located on a "premium" lot? Does it backs up to the lake? Does it overlook the 4th fairways? Can you see the entire city skyline from the roof top? Or is it just a regular boxy interior lot?
  So, again, just the price per square feet cannot adequately compare one property to another.
• What is the age of the house? If a community is large and one house is built in 1995 and another is built in 2007, again, the price per square feet information would not be accurate if you simply just ask for the community information.
• How did the house sell? Is it a cash transaction or is it a foreclosure? Did the house take a reasonable time to sell on the market?
• Did the seller contribute to closing costs? This is definitely important information that is not readily available on paper (especially on the CMA report). A real estate agent must have access to this information and of course, the listing agent must first provide this information as he/she closes out the transaction. So, don't you think there are much more consideration than to just ask for an average price per square feet in a particular neighborhood?

There are so many factors that lead to a complete detailed market analysis to the pricing. It is much more than just taking an average of how much the houses sold for in the last 6 months. Turn this situation around, say 5 years later, when you are ready to sell, would you (as the seller) take your house that backs up to the creek, with a complete deck and landscaping around it sell for the same price per square feet than your neighbor across the street is a regular interior lot with laminate flooring? Would you price it more just because your house is bigger than your neighbors?

There is more to evaluating to price per square feet. I hesitate to give out this information, say $125 per square feet for this neighborhood because it serves no purpose. It is different when you ask for a complete market activity in the past 6 months, but then again, you are looking at solely numbers which you cannot get many other feature/ property information with that analysis.

A complete market evaluation does take several hours to prepare. It is not simply comps you pick and choose, then find out the average of what SOLD in the neighborhood. I have studied far too long and hard to just give out this information blindly.

Now, my shameless plug: I proudly serve and sell real estate in the northern suburb cities of the Dallas metroplex. If you are thinking about purchasing or selling your home in neighborhoods of Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area and other surrounding areas and more importantly, want to work with a local area expert, contact me immediately.

It is a competitive market, hence it is important that you choose to work with the realtor who knows these communities like none other. I employ a systematic market approach in selling your home - an intentionally unique proposal that most real estate agents do not use. If you care to be on your way to a successful closing, contact me immediately to see how different my proposition will be.

Much to your success.

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Contact:
Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY

loreena@loreenayeo.com

Copyright © 2008 by Loreena Yeo (3:16 team REALTY). More To Pricing Than Price Per Square Feet.