This is a great question!
Square footage is not a good way to compare homes. You do need a comparative market analysis from a professional. While there is information Realtors track that can give you a general idea, there is no way anyone call tell you what you should pay without a thorough analysis.
And, please note that you do not pay the commission. The seller does.
of Longmont, CO
720 810 0683
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called â€œchasing the curveâ€) and Buyers will be asking the question; â€œWhatâ€™s wrong with that house?â€ and â€œWhy has it been on the Market so long?â€
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; â€œArenâ€™t you obligated to sell at this price if someone offers it?â€ The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
You need to get your own agent to do a comprehensive Comparative Market Analysis for the home you are looking at. Average dollars per square foot is not a reliable number unless you are using very similar comparables. Homes of the same style, quality, age & location begin to make this a useful number, but then you have to consider condition, upgrades & deferred maintenance to begin to get a clearer picture.
Please, I can't recommend high enough to get your own agent to represent you and do the necessary research.