Price Per Square Foot is Not Reliable
By Hank Miller, SRA, Associate Broker & Certified Appraiser
(Ansley Real Estate/Christie's International)
Like the swallows coming back to Capistrano, every year about this time... Price per square foot is not reliable, do not use it to estimate market value of a home. There are limited instances where it might be a contributory asset but those are very limited. For resale homes, do not use price per square foot in any value calculation. That video sums up the key points but best to let the visual below sink in. How reliable and consistent are these things and data sources?tax recordsliving area calculationsdesignquality and workmanshiplot pricelot featuresexternal factorslocational appealhome conditionbuyer circumstancesseller circumstanceseconomic conditionsincentivesmaterials and labor costsadded upgradesdistressed salesinfluence of new home constructionzoning changesand 100+ other varia...
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