Secondly price per square foot doesn't take into account the finish quality of a home. In a single neighborhood, one house could have custom hardwood flooring, granite counter tops, extra bathrooms finished in high end tile, a new roof, and hew heating and air conditioning equipment while another may have none of these things and still be the same size. Then there's lot size and desirability.
Even in a neighborhood not all lots are the exact same size and some are landscaped while others aren't some may be flt, others not, The truth is no two homes are exactly the same and buyers spend way too much time focusing on price per square foot. Price per square foot is a down and dirty guide that establishes the high and low ranges in an area. True experienced professional Realtors can and should then do analysis for their clients to help them understand the true market value of a property which is why Trulia's "Estimate of Value" and Zillows "Zestimate" are not only worthless but aggravating to true real estate professionals. Neither site has ever seen a single property listed on their sites and base their numbers on tax records and price per square foot information. You should focus on finding yourself a good buyer broker who can assist you in valuing properties you're interested in. I've attached a link below on what to look for in a Realtor.
Five different buyers could value the same home differently. It just depends which one buys it which then determines it's market value. Homes do not have an exact market value, rather, a range of value.
Hope that helps.
One home may be much preferred compared to another because of options, the way it sits on a lot, drainage, view, etc....
However, It is whatever the market will allow, But people who buy houses want to make them their homes and you can see huge differences in sq ft.
Personally, I have a two story home which gives me a lot more square footage over my neighbors ranch home. So my "cost per square foot" is going to be a lot less.
The Lash Group
Prudential Preferred Realtors
Office: (616) 447-7045