There are a lot of ways to determine the value of homes for sale in your area or to find out the value of your house if you want to sell it, and one common method people use involves comparing the price per square foot. While this method can be helpful to use, it is not the most accurate method available, as there are so many other factors that can affect the value of a home besides this.
How to calculate price per square foot
To find the price per square foot of a house, you should divide the list price (or recently sold price) by the number of square feet found in the house. For example, if you see a home for sale for $220,000 that has 2,400 square feet, the price per square foot would be around $92. You might find another home for sale for $165,000 that offers 1,600 square feet. This home would be $103 per square foot.
How to compare a house to others using this method
You can use this method as a basis to determine how fair a house price is compared to others when shopping for a house. If you find a lot of homes you like that are around $100 per square foot, you might rule other homes out if they are $130 per square foot. You can often find an approximate going rate for home prices by using this method.
Other factors to consider when using this method
If you use this method, there are several important things to know. The first thing is that the price per square foot tends to decrease as a home gets bigger. This means that a house with 3,000 square feet will have a lower price per square foot than a house that has 1,500 square feet. This is a normal rule of thumb to keep in mind as you shop for a house.
The location of homes also affects the price per square foot, as some areas have higher costs for living. It is also important to realize that you can find variances in the cost per square foot due to the condition and finishing materials of a house. For example, a luxury home will always have a higher cost per square foot than a basic starter home.
If you are interested in learning more about valuing homes for sale or would like to begin a search for real estate, you should speak with a real estate agent in your city.Share