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Florida Real Estate Blog

So this questions comes up often when families are considering selling their home and the Realtor has presented them with what he or she considers is the value of their home.  Conversations goes something like this. 

 

Tell me Jim how can that be since my neighbor on this same block has sold their home for $170 per sq ft.  and we are much bigger than them.

That is always the key to the answer, the smaller the home the bigger the impact on price per square foot. 

 And here is why.  Everyone in the same subdivision has approximately the same price for the lot(yes I know some paid premiums’ for their lot that is on the Water/Golf course/no rear neighbor).  But that can be adjusted for in a Market Analysis.  What most folks do not realize is size of the house works in reverse on calculating  price per square foot.

 i.e.  two homes  one 1,400 sq ft   the other 2,100 sq ft.  Lots in this neighborhood have a value of $50,000.

 

1st home Price per sq ft for that land is $35.71  while 2nd home is 23.80. That is a big difference when comparing what is a fare price for the home.

Give us a call 407-718-0984 if you have questions.


Posted in:General and tagged: appraisalmarketanalysis
Posted by Jim Ruddy on May 7th, 2019 8:59 AMLeave a Comment

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