Property Q&A in Richboro>Question Details

Scott, Home Buyer in Huntingdon Valley, PA

Price per square foot?

Asked by Scott, Huntingdon Valley, PA Mon Feb 9, 2009

Does it make sence in the market we are in right now to pay more price per square foot then the avererage is showing for that area. For example, if Richboro is $160 per square and this home is $180 per square what factors should come into play when looking at these numbers. Also if there is a detached garage that does not get added correct?

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scott you need take all portions of any property into account when trying to determine a homes value. you can't say that a 2200 sqft home with an unfinished basement, pool, det. garage, etc. that may have sold at $160 per sqft has the same value as the same home with 3400 sqft which includes a finished basement. 2200 x 160=$352,000.......3400 x 160=$544000. do you see how the sqft method can skew the results. is a finished basement really worth $192,000? not a chance.
you really need to account for everything when trying to determine the value of any home.
feel free to contact me with any further questions.
I will have a home coming on to the market very soon off of upper holland rd...a 4 bed 2.5 bath home plus an in-law suite with bed, bath, kitchen and private entrance. the home also has a detached garage and about a half acre of land. let me know if this is similar to what you are looking for.
dennis strange
remax premier
215-396-4600
267-767-8558
1 vote Thank Flag Link Mon Feb 9, 2009
Scott,

I am not a big fan of price per sq foot. It may make sense when looking at building new construction. But on a resale there are many more factors to consider. Such as improvements, location, style of the home,etc....And as you mentioned the typical sq footage listed on the MLS or Public record should not include garage and /or basement. The best thing to do is compare it to the comps...just as an appraisor would. Hope this helps.

Re/Max Associates
Hugh Henry Jr
215-588-6369
remax@voicenet.com
Web Reference: http://www.hughhenryjr.com
1 vote Thank Flag Link Mon Feb 9, 2009
Well, that really all depends on the comparable sold properties in the area. I would suggest that you work with the buyer's agent to figure out if the price is worth paying for it.

Ask yourself a question. If you pay $180 per sq. ft., will the property get appraised? If it doesn't get appraised, you won't get money from the bank, right?

That's why it's important to work with an agent to figure out the best price and the most fair market value of the house.

To see all available active listings in Richboro, please follow this link: http://www.ephiladelphiarealestate.com/richboro-real-estate.php

If you need help or have any questions, please don't hesitate to contact me through my website.

Regards,

Russell Volk
1 vote Thank Flag Link Mon Feb 9, 2009
Scott,

Your question is a good one. It makes total sense to pay more if you are getting more. It tmakes no sense to pay more for less unless of course there is great personal value that you see in the item being purchased.

I like the square foot method of quantifying the value of property because it is an easy formula. But... and I am sure you expected a BUT based on the answers you have received so far. But, unfortunately the square foot method does not take into account many other factors such as location, improvements, and the personal value that you believe the home will offer you as an investment.

In Philadelphia, where I live and work, the square foot method is best used with condos or townhome communities where each property is similarly designed with similar sq footage and all property is within the same building or withing a small cluster. Even then, we still need to account for location (ex. penthouse or corner unit vs ground floor unit or basement unit) , upgrades, and the personal value tht the buyer places on the property (ex. a space w/ the potential for a guest room in the future vs a space with no room for growth).

I sold my mother's home in Richboro about a year ago. The community was built in 3 different phases over a period of 10-15 years so there were a variety of factors to take into consideration when pricing. Some of those considerations were: age, upgrades, lot size, square footage, additions, layout, location... Ultimately, to find the right listing price I took the comparable sales in the development, and evaluated the value of the upgrades and the value of improvements needed on the property. There was no formula. When an offer came in a few weeks later, we were confirmed that we had priced the home accurately.

The answers given below are very good. I would recommend finding a Realtor familiar with the area you are looking and going over the comparable property sales before making an offer.
0 votes Thank Flag Link Tue Feb 10, 2009
Hi Scott, The way the market is price is based on the current sold in the development. Sq ft is compared from one home vs the other when determining the price, give or take along with if the house needs updating, etc. If you are viewing the public records for sq ft they are not all accurate. The best way to determine the value of the house is by looking at current sold similiar within the development or within township comparing closet to yours. Garage sq ft is not added into footage of home. If you like, we could schedule an appointment so that I may view your proeprty and prepare a comparative market analysis. There is no charge at all for this. Please do not hesitate to contact me at 215-407-5559 or email tammysmith@century21.com Thank you and I look forward to hearing from you. Tammy
0 votes Thank Flag Link Mon Feb 9, 2009
I am in total agreement with the answers here. Where are you getting your "average" from? Is it the average of ALL of the homes or all the SIMILAR homes? What's more, it IS an average. Did you remove all the distressed properties from the average? How about acreage? Does the "$180/sq ft" home have a really large lot?

I only use $/sq ft on commercial properties, because thats the way they roll. When it comes to home, there are just too many factors to think about.

Get in touch with a Realtor who can help you out with finding the right home for you. I am willing to help in any way possible. I can even let you know of home not in the MLS.

Hope that helps,

Terrence Charest, e-Pro®
REALTOR®
Century 21 Associates
905 Easton Road
Willow Grove, PA 19090
Cell (Preferred): 877.614.1494
Office: 215.659.5250
Fax: 215.659.5550
tcharest@HomesForFreedom.com
“Century 21 is the number one franchise site on the Internet”
0 votes Thank Flag Link Mon Feb 9, 2009
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