Q: Is $/square foot an accurate way to value a house?
Figuring out a sales price for a property is based on a lot more than just the price per square foot. It’s based on comparable sales in the area and the differences between the home that you might be purchasing or selling and the other homes in the area. If another home has a nicer kitchen or more bedrooms that would add value to that property. If your home has a three car garage and someone else’s has two, your home might be valued a little bit higher. The price per square foot really is only effective in calculating a sales price when the homes are identical. If you’re looking in more of a cookie-cutter subdivision where everything is the same a price per square foot might make sense for calculating a sales price. But generally speaking, most homes are so vastly different in one way or another that calculating the price based on the price per square foot doesn’t really make sense.