$/SF Comparison

Posted by Eric Peterson on Thursday, June 2nd, 2016 at 10:54am.

You may remember me talking about $/SF not being a reliable metric to use when pricing real estate.

I have a great example from 2 homes we sold in same neighborhood in May.

The homes are of a similar size but the home on the left was 13 years newer, in much better condition and on a beautiful private lot compared to the home on the right, which backs up to a busy road.

I’m often asked “What’s the average $/SF in a neighborhood?”

If you used the average $/SF in the neighborhood to price the 2 homes you would have underpriced the home on the right (or made a ridiculously low offer) and overpriced the home on the left (or paid too much).

When estimating real estate value it’s important to consider all aspects of a property and not simply multiply the size by the average $/SF.

If you want help estimating the value* of a home you plan to buy or sell please call/text Eric Peterson at 512-791-7473 or email at eric@koparealestate.com

*Broker will provide a market analysis not an appraisal

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