Home Buying in Muncie>Question Details

June, Home Seller in Albany, IN

How do you determine price per sq footage?

Asked by June, Albany, IN Thu Nov 4, 2010

Help the community by answering this question:

Answers

4
Lynn911.com Dallas Realtor’s answer
Price per sq. ft. is determined by past 6 months comp's of homes SOLD NOT active on the market in a particular given area. includes room count, year built, pool and etc.

Your listing can provide you this info.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Thu Nov 4, 2010
June,
I use price per square feet calculation as a final check to assess an offer. I use price per square foot with my buyers purchasing a condo or townhome because the units are generally all the same and it's a great comparative tool.

In single family homes, it's a little trickier because of the extreme variability in the condition of a home or the level of finishes and/or upgrades. But, it's useful to see if the cost per square foot exceeds the going rate for new construction, which varies by area.

I hope this helped.
Stacy Carter
Associate Broker
Home Appreciators Team at
Better Homes & Gardens Real Estate Metro Brokers
0 votes Thank Flag Link Thu Nov 4, 2010
Probably the best and most accurate way to do so is to call a local agent and have them show you comparative home sales in the area of your house. Ideally you want timely sales data -- not data that is 3-4 years old. That was quite a different market that long ago. Albany, IN may not have a lot of data so having help is important. In the end there's a mix of data and experience in pricing that plays into the end price. Also, often the homeowner has an "uncle point" that plays into pricing too. Where I may think your home is $150k, you know your numbers suggest $152 is your bottom dollar (when you factor for expenses).

Say you have 1500 Sq Ft of home and my data says similar homes sell for $75/sq ft, then your home could be priced around $112,500 (all things being equal and your house is in satisfactory shape). Also, remember that basements that are not finished don't count in your square feet of living space. There are other factors to consider with basements too so call for help. If I can be of service feel free to call, Steve Slavin: http://www.iMuncie.com. Best, Steve
Web Reference: http://www.imuncie.com
0 votes Thank Flag Link Thu Nov 4, 2010
The sales price divided by the square footage of the home. I use this calculation this all the time in my market area (for active listings, then a separate summary for solds). If you take all the homes sold in a particular neighborhood and do an average for $ per SF = this certainly tells a story. There are always going to be some that are less than average and some more (this is obviously determined by the location and the ammenities. It is not an exact science and some agents won't use it but I use it and it certainly shows a homeseller a picture. If you do this for all the homes in your neighborhood ---I'm sure it will show you in a summary perhaps some homes which are overpriced. I hope this helps
Perform this calculation for say the last 3 or 6 months of sales in your neighborhood and you will get an average. Good luck.
Example: Selling Price = $400,000, SF of the home is 2300
$400,000 / 2300 = $173.91 or rounded to $174 SF
0 votes Thank Flag Link Thu Nov 4, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer