Home Buying in Holland>Question Details

Kelsey Wehr, Home Buyer in Toledo, OH

Price per square foot?

Asked by Kelsey Wehr, Toledo, OH Wed Oct 3, 2012

My husband and I getting ready to purchase our first home. We have been approved for the loan and have found a house that we like. The only problem is the price for the size of the house. The house is listed at $199,000 and is 1,636 sq/ft. The Realtor said they might be able to get it for $190,000 which still seems high.This is a new construction. We are not sure if this is way to much for the size of the house, especially since much larger homes in the same neighborhood are selling for less. Is this price high for the size, and if so what would be a reasonable price to offer. In case it is helpful the zip code is 43528.

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As the other agents mentioned, your agent should be able to assist you in determining if the house is priced where it should be. New construction is definitely going to command a premium price versus existing homes.

When I searched for that zip code, I didn't find much in the way of new construction. The home you have interest in is the only new construction for sale. There has only been one other new construction sold in that zip this year, and it was at $1.66 less per square foot. That would put your home at $197,183. The other homes you are seeing are at least 5 or 6 years old, which will tend to lower their prices some.

If you really think you will be in the home long term, then the new construction might be a good option. If you think you will be moving out of it in the next 5 years, you may want to consider other homes, as the new construction is not going to hold it's value as well in the short term.

Good luck in your search!
Web Reference: http://www.ChadBoyers.com
0 votes Thank Flag Link Wed Oct 3, 2012
Keep in mind that square footage costs do vary, and don't account for location and other considerations; therefore, it's really in your best interest to also review recently sold similar properties in the immediate area, and their final sales price...
0 votes Thank Flag Link Wed Oct 3, 2012
The development is relatively new the oldest houses were built in 2006 and they are currently in the process of building more. The prices range from $221,000 down to $159,000. The average price per sq ft in the development is $98.20, which is why we were feeling a little unsure about paying $121.64 for ours.
Flag Wed Oct 3, 2012
I would suggest your realtor perform a Buyers CMA for you, this will give you a better picture of the market value in your area. New construction always goes for a higher price and is up-to-date with all the latest building codes. Also, new construction typically has more discounts when it comes to house insurance making it cheaper to insure.

Also, the larger cheaper home is it new construction and in the same or better condition. If not then you should not compare the two homes.

The only true way to determine the value is by having an appraisal done by a lic. appraiser. Should the appraisal reflect a lower price then you can go back to the seller and try to negotiate the lower price supported by the appraisal report. However, it will be up to the seller if they will agree to the lower price or not. If the appraisal comes in higher you are in contract for an agreed upon purchase price and no further action is needed. (Appraisal report is for your eyes only unless you try to re-negotiate the agreed upon contract price.) Have your agent make the offer subject to appraisal.

Appraisal are a standard requirement in order to obtain financing on the property. At the same time they give the buyer peace of mind that they got a fair deal.

Good luck.
Web Reference: http://www.SLeonRealtor.com
0 votes Thank Flag Link Wed Oct 3, 2012
I would certainly have your Realtor do detailed CMA. You should be able to see how this price was justified. New construction tends to go at a premium though.

Good luck!

Nick Gandhi
Equity Capital Real Estate
(203) 280 3838
0 votes Thank Flag Link Wed Oct 3, 2012
With a list price of $199,000, $121.64 per sq ft, I would ask your Realtor to pull recents sales in the area. Good luck with your new home!
0 votes Thank Flag Link Wed Oct 3, 2012
Looking at the recent sales the average price per sq ft is $98.20. That is going from sales between 2006 - present.
Flag Wed Oct 3, 2012
Looking at the recent sales the average price per sq ft is $98.20. That is going from sales between 2006 - present.
Flag Wed Oct 3, 2012
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