HGTV® & Price-Per-Square-Foot
Front Door® Home Selling Checklist
Does Square Footage Matter? See the Checklist Below…
- Research public records and collect information on comps — comparable homes in your area with similar square footage, construction, age and condition that sold within the past six months and are currently on the market.
- Ask your agent to prepare a Comparative Market Analysis (CMA)
- Find out about new construction and foreclosures in your area.
- Figure out the average cost per square foot for your area, and make sure your home is in line with it. Here’s how:
- Add up the square footage of 3-5 homes and divide by the number of homes to get the average square footage.
- Add up the sold price of each home and divide by the number of homes to get the average price.
- Divide the average price by the average square footage to get the average price per square foot.
- Multiply that by the square footage of your home to get the price
Through many people’s eyes, this simple number (square footage) is the foundation of residential property values; the currency of real estate. Right or wrong, it is the most often used method to calculate home values.
The square footage fairy doesn’t work in the local tax assessor’s office or the real estate industry, and no-one magically reports accurate square footage totals for every home in the country. The “square footage” details many people depend on, comes directly from the local tax department, who has no interest in the real estate industry’s information system. The square footage details listed in public records are created specifically by, and for, exclusive use within the tax department. It is an estimate of size, for assessment purposes only.
Using an inaccurate square footage number changes everything; the “formula” we know and trust no longer works. Accurate square footage is a necessary number to solve any home valuation problem. Before you buy or sell a home, make sure you know the accurate size/square footage of the home. Your “home-selling” checklist should always include having your home professionally measured prior to determining the value. A one-hundred dollar investment may yield thousands in return.
