A question I get all the time from my clients is it a good idea to determine home value based price per square foot? I get this question from both buyers and sellers. I wish pricing a home in Santa Barbara or any home for that matter, was that easy. In real estate, as with many things in life, the easiest solution are not always the best or most accurate solution. Everyone, realtors, sellers and buyers alike would love a simple and concise way to determine the value of a home in a quick, simple and most important, accurately. You take the price of a home, divide it by the square footage and !!!WHAM!!! you have the value of a home. Easy-peezy – right!!?? Not so fast, there is far complicated than that when it comes to determining a homes value.
Although the price per square foot can be useful component in learning about the general value of a home, it is poor indicator of a home’s true overall value. There are so many other components of a home that must be considered when determining a home’s worth and it is so much more complicated than a simple formula that only uses two variables. Additional things to consider when determining a home’s value are:
- A very simple a basic consideration is of the number of bedrooms and baths the home has
- What is the size of the lot? Inner city postage stamp or Hope Ranch acreage?
- The neighborhood and how it compares to the neighbors around it?
- Age of the home. Is it 1910 original or newer construction? If it is older, how old and has it been updated or remodeled and if so to what extent?
- General state of repair of the home. Is it well loved or is it worn and tired?
- School District
- View ….or not
- Access to conveniences ….or not
I hope you found this information useful and if so, I’d love to hear about it. Send me a note or ask a question or leave a comment below.
And if you’re serious about valuing your own home I’d be happy to help! See below for information on how to have your property valued. Contact me directly
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