#ChickChat Episode 28 - Why should You IGNORE Price Per Square Foot?
A lot of sellers, when we meet them, they want to compare their homes to the neighbors who sold at 164 a square foot, so they want 164 square foot. But it just really doesn't work that way. Appraisers are not going to use price per square foot whenever they're doing their work. They're going to use the comps. They're going to use the comps in the neighborhood and they're going to use similar homes with a similar bedroom count, square footage, bathroom count, and all of the upgrades inside the house. They do not even think about price per square foot. Just because your neighbor, Joe sold his house at $200 per square foot doesn't mean that, that's the case for you. Your home is completely different. Price per square foot really goes off how big your home is, the location of your home, the upgrades, if you have a pool. There's just so many things that go into price per square foot.
Another thing I've noticed that usually smaller homes get a higher price per square foot because it takes more money to build a smaller home than building in bulk, a bigger home. If you think about going to Costco, if you buy a big chunk of, I don't know, vitamins, it's less per unit than it is to just buy one vitamin pack.
Bottom line we never use price per square foot. Maybe it's something to start the conversation off with price, but we're always going to use comps and so is the appraiser. And so are the buyers that are going to be looking at your house.
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