Pricing Your Home- Price Per Square Foot
This article authored by: Catherine Hallberg
You want to get the optimum value for your home, but prices are all over the place in your community. What to do? One way to set price is using price per square foot. There are real estate principles at work here:
Principle of Conformity: The principle of conformity states that maximum value is realized when a reasonable degree of architectural homogeneity exists and land uses are compatible. Most developers build homes with similar styles, features and lot size. This produces neighborhoods with their own range of value. You can readily find this range by examining the price per square foot of the homes which have recently sold.
Price per square foot is derived by dividing the average sales price of the homes sold by the average square footage of the homes sold.
The smaller homes sell for a higher price per square foot because they are being pulled upwards toward the average. The biggest homes are pulled downward towards the average.
Of course, consideration will be given for views, pool, extra garage spaces and larger lot size.Condition of your home and upgrades will be factored in as well.
Price per square foot isn’t the only factor in determining the value your home, but it’s a great place to start!
Rob and Catherine Hallberg are Associate Brokers with Long Realty, a Berkshire-Hathaway Affiliate and Southern Arizona’s largest Brokerage. Send Rob and Catherine an email for a fast response to your questions; for an even faster response, Call (520) 407-8667.