It depends on the age of the home, acreage it is on, location, location, location, updating, appliances and what similar homes have sold recently, nearby. At just under $100/sq ft, it certainly could be worth it.
You can get a real estate agent's opinion. Also, keep in mind that most sales are subject to appraisal, unless you are paying cash. No lender wants to be stuck with a property they can't resale in an emergency. This protects you from overpaying.