"Your listing is over priced per square foot !" ranted the Selling Agent

By
Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

   One of the criteria that some people use...be it listing agents or Buyer's agents to determine the price of a house...is the price per square foot. Feet square We see this as a very isolated...and sometimes  misleading number.  

   - Who determined the "square feet" ?

           That is the problem...it could be ...the municipality...it might be the builder...it could be the Seller...it could be the present or past listing agent...And HOW was it determined...?

  Floor plan     The truth is that there is no universal way of determining square feet. Some people measure the perimeter of the house...mutiply by the number of floors...may add additional square feet for a finished lower level OR may only add those IF the finished level has egress windows and/or a lower level exit.  

    Other people add the "room dimensions"....that means that you are not counting hallways, closets, walk in pantries, thickness of walls...some do and some not include bathrooms...and the variations continue.

     One of the things that we are exceedingly careful about is pricing...and if necessary...we always hope not...adjusting pricing rapidly to "meet the market."Over priced

       Over priced is not our hallmark....we immediately went to the last several SOLD listings in the market area questioned.....OVER....no our listing was actually a little UNDER any of the recently sold properties.  We quickly prepared a chart...address, square feet, price/square foot and sold price...Voila  !  

    Agent...professional that he is...admitted his mistake and is getting back to the Buyers with the good news.

      Square feet...one critieria....different methodology can actually make a house that is "bigger" seem smaller.

  Homework     Listing agents...Know your listings....Selling Agents...do your homework before you assume...crititque...advise...

    If you or anyone else you know is looking for agents in southeastern Wisconsin who DO their homework....Call the Hansons...it is our honor to be of service for all things real estate.

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Sally.  The problem with the square foot method is land values.  Not all land values are created equal.  It's still all about location.

Sep 21, 2015 09:31 PM #1
Rainmaker
3,304,801
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

   Locataion is cetainly also an element...agreed.....mixing that with the unknown origin of the feet is confusing to buyers....and worse yet ...agents !

Sep 21, 2015 09:36 PM #2
Rainmaker
3,229,648
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

We are one of the few areas that do not measure per sq ft, and rarely only out-of-town clients even ask this question...

Sep 21, 2015 09:39 PM #3
Rainmaker
3,860,087
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Sally K. & David L. Hanson ,

Good post..so many buyers want to go by SF price and many times there is a dispute about the measurement. So many other factors come into play...updates, number of garages, size and location, location!!!

Sep 21, 2015 09:42 PM #4
Rainmaker
1,804,222
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Sally, I just went through this on a home going into agreement in the last week with the agent who through in houses that were remodeled poorly in quality.  It pays to know your competition well!

Sep 21, 2015 09:54 PM #5
Rainmaker
3,205,462
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

I Think folks ask about price per square foot because of Millionnaire shows on Bravo! Ugggg

Sep 21, 2015 10:18 PM #6
Rainmaker
3,219,732
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Besides, how calculating square feet might differ, a price per square foot does not necessarily reflect improvements in a home, size of lot, other amenties, etc. I only use a price/sf as a way of testing reasonableness, but not ever as a way of determining a home's value.

Sep 21, 2015 10:45 PM #7
Rainmaker
3,304,801
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

  We agree Nina Hollander...however...that is not where the "heads of all knowing buyers agents" seem to be at times....urgh

Sep 21, 2015 10:50 PM #8
Rainmaker
2,284,201
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Sally. I do not focus on dollars per square foot at all, not even when I'm buying or selling. The only state that I do business that I see dollars per square foot as a consideration is Florida. 

Sep 21, 2015 11:08 PM #9
Rainmaker
3,304,801
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

In Wisconsin Joe Petrowsky it is just one "criteria" sometimes used by agents who do not add or subtract updates, age of mechanicals, location and somehow use that a reason to either offer a low price or pass on the property.

Sep 21, 2015 11:14 PM #10
Rainmaker
1,858,306
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

And to think that agent thought to argue with you.  Well, lesson learned, I hope...

Sep 21, 2015 11:23 PM #11
Rainmaker
3,304,801
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Yes Jay Markanich....he should know that the Princess of Real Estate is never wrong !

Sep 21, 2015 11:24 PM #12
Rainmaker
2,346,102
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Selling Agents...do your homework before you assume...crititque...advise...ENOUGH SAID!

Sep 21, 2015 11:28 PM #13
Ambassador
3,968,890
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Sally and David- something I've learned is that not all square feet live the same.  It's all how it's laid out. 

Sep 22, 2015 06:14 AM #14
Rainmaker
3,304,801
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Right you are Kathy Streib....bigger where you want or need it bigger and nonexistent if you choose it.....

Sep 22, 2015 06:20 AM #15
Ambassador
3,861,523
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally and David normally I see Realtors/Agents around here accepting the square footage listed on the MLS or what is listed on town records.  I would think a Realtor/Agent who shows up with a tape measure on a show is rapped a little tight :)

Sep 22, 2015 06:32 AM #16
Ambassador
2,914,368
Anna Banana Kruchten CRB, CRS
Phoenix Property Shoppe - Phoenix, AZ
602-380-4886

Sally square footage  is only part of the equasion for buyers/seller in my area. We have so many homes that are upgraded, with high end amentites, pools, quest houses, plus add to that location can vary greatly for home prices. One end of the valley luxury home is 1M the other end luxury is 5M+ with square footage all over the board!  So much to consider!

Sep 22, 2015 08:20 AM #17
Rainmaker
3,304,801
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

We don't disagree Anna banana but we do answer the agents with every detail we can

Sep 22, 2015 08:25 AM #18
Rainmaker
5,512,788
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is good reading for prospective home buyers and home sellers.

Enjoy the weekend!

Sep 26, 2015 03:09 AM #19
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Rainmaker
3,304,801

Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
For All Things Wisconsin Real Estate...Call the Hansons
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