Murphy Mark, Home Buyer in Hot Springs, AR

How to calculate price based on total sq. feet area of house?

Asked by Murphy Mark, Hot Springs, AR Tue Jan 25, 2011

I liked one house which is 3000 sq ft. Total price calculation includes per sq. foot price multiplied by 3000 sq ft. However in effect house has main floor with 2000 sq ft and 2nd fl with 1000 sq. ft with small rooms and slopping ceilings.

My understanding is if you are buying a house the floor plan on main floor is important not on the 2nd floor. Let’s say if I want to pay my price based on per sq. foot should I offer it based on sq foot price of only main floor or should include total sq. ft of the house? Should I take different calculations for 1st floor and 2nd floor when it comes to total price calculations?

This is for Hot Springs AR.

Thanks all

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Answers

9
I agree with Akop.

Overall I wouldn't put too much weight on square footage alone. I have been in 2000sf houses that feel bigger than 2500sf houses because it was better designed and had better flow.

As far as valuation goes...square footage is very limited. Quality of finishing, features, location, etc will all play into the value.
1 vote Thank Flag Link Tue Jan 25, 2011
This would depend on where the home is and many other factors.
0 votes Thank Flag Link Wed Jan 26, 2011
Price per SF is NOT a good way to go. And floor plans vary from house to house. What about ranch models (one level home)? What about houses that have a main floor master, and other BR's upstairs? What about "multi level" homes?

As other agents have said, there are many different things to consider (condition of home, improvements, location, etc.). Think about it. A 3,000 SF home in a gated community, built in 2010 with granite counters, stainless appliances, pool in the back yard etc is going to cost a lot more than a 3,000 sf home built in 1950s, no updates, in "bad" neighborhood.

If you haven't done so already, have a Realtor represent you as a buyer's agent. He/she will be able to pull sold comps for the houses you're interested in, and can give you an idea of what Fair Market Value is.

Good luck!
0 votes Thank Flag Link Wed Jan 26, 2011
I have been to Hot Springs a few times, beautiful area. I would say Under Air Sqaure Footage or Under Roof sqft is the same no matter what floor it is on. You would use all 3000 qsft correct? If so, it should be considered.

best of luck
Justin Ruzicka
http://www.house-guy.com
0 votes Thank Flag Link Tue Jan 25, 2011
You may want to do this, Murphy Mark, but nobody else does it, and so, you're on your own.

The reason we see $/sf on reports is a vestige of the early MLS systems, whose programmers took delight in being able to create reports with these calculations. It has nothing to do with the standards of residential real estate evaluation.

All the best,
0 votes Thank Flag Link Tue Jan 25, 2011
Mark,

My experience is that the square footage that you would calculate would be the entire 3000. That being said, I have not been seeing value based on price per square foot in my area. The biggest factor in value is the location and condition of the house, not the square footage.

If you have a 3000 square foot home in a 2000 square foot area it would be very different than if you had a 3000 square foot home in a 4000 square foot area.

Two 3000 square foot homes could have different values depending on it being a fixer/foreclosure or a home that was either new or had been totally upgraded.

Many factors affect the value.

The house is worth what someone is willing to pay. Supply and demand, interest rates and financing. Many factors including square footage.
Web Reference: http://www.SindyVerdugo.com
0 votes Thank Flag Link Tue Jan 25, 2011
Hi Murphy,

My approach would be the following: find out what homes in the 3000 sf range are selling for recently, in that neighborhood, and with similar features. Use these comparable properties to derive a value for the property you are interested in. A qualified buyer's agent should be able to help you with that.

Then, based off of this derived value, deduct what you believe to be the monetary value of having a poor floorplan and sloping ceilings in the 2nd floor. This should give you a ballpark price for what you would be willing to pay for the home.

Happy hunting,
Akop
Web Reference: http://www.vchousehunt.com
0 votes Thank Flag Link Tue Jan 25, 2011
Hi. I am not in your area, but after reading your question my first thought is that the total square footage should be considered, because let's say the 2nd floor was drastically improved, then that would impact the price. I hope it helps.
0 votes Thank Flag Link Tue Jan 25, 2011
total sq footage is what is count. first floor is 2000 and thirs is 1000, well total is 3000.
if you like to get a price per sq/footage just go to some sites which lists sold homes like tulia or redfin and look at the house you are interrested in and those sold around it to get an average price.

Mandy, agent
0 votes Thank Flag Link Tue Jan 25, 2011
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