Understanding Price Per Square Foot

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Use this article to educate clients and prospects about what’s really behind price per square foot valuations and why it is an exceptionally poor pricing tool when it comes to evaluating their home.

Product Description

Overview: 

Use this article to educate clients and prospects about what’s really behind price per square foot valuations and why it is an exceptionally poor pricing tool when it comes to evaluating their home.

Post Title(s):

  • Understanding “Price Per Square Foot”
  • Why Price Per Square Foot Doesn’t Work
  • The Truth About Price Per Square Foot

Post Teaser: 

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If you’ve been calculating your home’s value based on market “price per square foot” reports, you may be vastly overestimating or (worse) underestimating your home’s true value. Here’s why.

From the post:

“Price per square foot is a concept in real estate which is easy to understand and just as easy to misuse. The formula is pretty simple: To determine price per square foot, you take a price, such as sale price of a home, and divide it by the square footage of the property.

Price per square foot is useful in looking at broad market comparisons, such as comparing one entire metro area to another, or looking at an area’s average change over time. It is not, however, terribly accurate in figuring out the value of your home…”

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