Thomas, Home Buyer in Denver, CO

Price / Square Foot

Asked by Thomas, Denver, CO Tue Apr 22, 2014

Hi,

I am wondering what your thoughts are on price/square foot in the Berkeley neighborhood?

A house we are interested in is $610 per square foot, but that does not include the finished basement. Upstairs living space is around 630 square feet. Basement is 100% finished with 2 beds and 1 bath and around 550 square feet. The home is on a 7,000 square foot lot, with a detached 2 car garage. This house has been COMPLETELY renovated. Everything is brand new.

Considering the average $/Ft in Berkeley is just over $350, do you think it is wise to base our decision off of the $/ft recorders (ie. just the upstairs), or should we also include the basement, and take into consideration the lot size, the newness of everything etc...

Thanks.

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Answers

6
Berkeley is currently a hot neighborhood, and it sounds like someone it trying to capitalize on very limited inventory as 600+ per square foot is really high, but I will say that people are using the same price per square foot for finished basements in locations where there are not a lot of finished basements, which is probably where they came up with the price. And I will echo Sally down below and say psf is not fixed, it is a curve and varies based upon size this is also because of inherent land value that is overlooked by strictly adhering to psf. If you are working with a buyer's agent they will be able to do a CMA to determine what is a fair number to submit an offer. I would suggest it as they are paid by the seller's proceeds and don't cost you anything. Let me know if you need representation. I would be glad to help.

Carl Larson
1 vote Thank Flag Link Thu Jul 24, 2014
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 closed recently sold similar properties in the immediate area, and their final sales price...
1 vote Thank Flag Link Wed Apr 23, 2014
Price per SF is never a good way to go, unless you're looking at new construction. Why? Because is just about basic math. Smaller square-foot homes command higher per-square-foot costs. Larger square-foot homes command lower per-square-foot prices. This method doesn't take into account things like finishes, lot size, location, garage, etc.

Are you working with a Realtor? If not, you should be. He/she will do a comparative market analysis (CMA) for you which will give you an idea if the home is priced well or not. In this market -- with very low inventory, and high buyer demand -- I'm guessing this home is priced well and will sell fast, at or above list price.

Here's an article on Price per SF and why it NOT a good way to put a value on a home:

http://homebuying.about.com/od/marketfactstrends/f/062408_pe…

And if you're not working with an agent yet, I'm happy to help!

Shameless plug here:

Sally Grenier, Broker Owner
Metro Brokers | Grenier Real Estate
sallygrenier@msn.com
303.475.4508 Cell
http://www.searchwithsally.com
http://www.sallygrenier.com
1 vote Thank Flag Link Wed Apr 23, 2014
Hi Thomas,

Depending on style, size, area, and other factors, the price per square foot can be all over the board in Berkely and all of the Denver area. Having said that, the $610.00 per square foot seems excessive. If you have completed the transaction, I think many of us would like to know where this is, how you made out, and also if the appraisal cam in to justify the price

http://www.robertmcguirehomes.com
0 votes Thank Flag Link Fri May 9, 2014
I have not seen anything 610/sq ft in Berkeley. I definitely would consider hiring an agent to help you in the search of your new home. They can assist in crunching all of the numbers and advise in making, not only a sound financial purchase, but also one that is closest to your dream wish list as possible. And getting your dream home under contract is only the beginning. You really want someone representing you and walking you through the process all the way to the closing table. Keep in mind the Buyer's agent fee is most often paid by the seller...

Best of luck!
Dane
0 votes Thank Flag Link Thu May 8, 2014
I sell and live close to Berkely ~ have to say that $610 psf is higher than anything I've heard of in that neighborhood. Where is the home located? I'd love to see what that finish level looks like. Only in the uber luxury downtown high-rises (i.e, Four Seasons) have I seen numbers that come close to that.
0 votes Thank Flag Link Mon Apr 28, 2014
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