Home Buying in North Andover>Question Details

SJ, Home Buyer in 02155

Is price/square foot a good equalizer when you're estimating an offer on a property? We know $/sqft for

Asked by SJ, 02155 Sun May 3, 2009

properties currently on the market, and ones that were just sold.

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Not necesssarily. The cost per square foot does not address upgrades in the home you are considering, lot size, condition of home, bed/bath room count, number of levels, garage, neighborhood, etc. I hope you get the idea. Cost per square foot should be used only as a loose guideline. Your realtor should pull CMA's to help you establish your offer price.

Best of Luck on your purchase.
1 vote Thank Flag Link Sun May 3, 2009
Price per square foot of recent sales within a neighborhood or subdivision is a reasonable guide for a Buyer to consider when formulating an offer. However it should only be used as a guide. The limitations of price per square foot are that it doesn’t take in to account the condition of the property, the finish quality inside an out, the size or desirability of the lot (even within a subdivision not all lots are equally desirable), the age and quality of items like roofs, HVAC equipment etc. If you are looking at cookie-cutter townhomes or tract houses then this number is likely to have more value, though again end units may be more desirable, or a house next to a community playground may have more value to one buyer and less to another. It can be useful as a guideline, but ultimately you the Buyer need to decide what the property is worth to you.
1 vote Thank Flag Link Wed Sep 1, 2010
It`s a good cross reference to actual like-kind sales. Not a good idea to use alone as an indicator.
1 vote Thank Flag Link Thu May 7, 2009
SJ:

It can be one of the tools to use, but can't be used alone. I would also looked at homes that failed to sell. I would also recommend using assessed value correlation to sales price. Finally, condition, features, and yard size must be taken into consideration. Hope this is helpful.
0 votes Thank Flag Link Sun Jan 2, 2011
If you are the first time buyer, it is a good start. But this is not the only factor for you to buy a house. You do need to see the house condition, location and neighborhood and more. You need to see more open house and compare all the factors. A house on the cul-de-sac is always more expensive compare to the house on a busy road. If house next to highway, the value usually lower than the houses with privacy. Again, you need to go to open house and compare all the houses within your price range on the market. Good luck
0 votes Thank Flag Link Fri Dec 31, 2010
Price per square foot is one consideration to take into account when finding the value of a home. You still must make sure you are comparing similar properties in size, location, features and condition to be as accurate as possible.
Web Reference: http://www.thehousewiz.com
0 votes Thank Flag Link Thu Sep 9, 2010
Sj:

I would consider $/sq ft as one of the tools in your arsenal for pricing a home, but like a hammer it is not the only tool. You should be doing a % analysis of assessed value, features analysis, condition analysis, and overall neighborhood assessment. Once you have all these values you can determine what is a fair and equitable value for the home. Best.
0 votes Thank Flag Link Wed Sep 1, 2010
We always say Location, Location, Location. As other people mention in previous answer, you can use it as referance. But it also depend on the condition, location. But the bottom line is, as long as there is no other offer. You always can work on the price.
0 votes Thank Flag Link Wed Sep 1, 2010
That's true, thank you for your input! I've reviewed about 30 homes and the average is about $193 and the house I'm looking at is $221. It needs major work in the kitchen (a complete gut including walls knocked down) and the rest is done pretty well. On the market for about 109 days without a price reduction....lots of things to consider. And, thank you for taking the time to answer my question. I'll speak to my realtor more about this.
0 votes Thank Flag Link Sun May 3, 2009
Not necessarily. If you think about it, some homes could have dramatically different lot sizes and upgrades....which would not be affected by the price per SF....but it would affect the value of the home.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Sun May 3, 2009
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
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