Is “dollars per square ft “ an analysis tool in your area?

[Snagglefoot]

I’ve seen “dollars per square ft” being thrown around for new construction, tax assesments and existing house sales. Of course it’s totally dependant upon the level of finishing but I’ve heard numbers being thrown around using the main floor only, the main floor and 2nd floor added together, the main floor and a walk out basement, and in some cases, the main floor plus finished basement. I read an ad for new construction of a two story house, no lot, for the equivalent of $220 USD / square ft equivalent when adding both the main floor and top floor. Can anyone shed some light on how it works in their area? Thanks.

 

[tbm5690]

Any finished space gets counted here. Full basements that are fully finished are common and "count" towards total square footage.

 

[dnewton3]

It is, as you said, very difficult to use that measure in a meaningful way because of all the parameters you mention.

I think it would be useful if that value/area were placed into a category as a national realtor practice. It could be separated into tiers and then the value would have more meaning.

T1 - low quality construction; contractor grade and model home stuff
T2 - mid quality construction; name brand stuff but not high-end
T3 - high quality construction; name brand stuff at the high end

Sure, there will be mixed features that make it a challenge to define ... perhaps it has high end carpet but mid grade lav fixtures, etc ... But at least it would give the $/area rating more meaning.


In my area, because of the concerns you mention, there seems to be a willy-nilly approach and no consistiency to the valuations. There are so many inputs to consider it's really hard to make that valuation a relative tool for comparing/contrasting homes.

 

[PWMDMD]

I have 1000sqft of finished basement, totally underground and not walkout, and it has never been included in the sqft calculation for anything.

 

[supton]

Can't include my basement, since it has but one door. Can't really make it finished but it has my office, wife's sewing room, and a dance studio/gym now, in addition to a small area for my workshop (plus a lot of junk). Huge value to me, not sure it factored into the house sale price though (not many houses around here lack basements, if you don't have one it's a price reducer if anything).

 

[skyactiv]

I had a custom home built last year with a walkout basement. "9'" really basement 8'7" ceiling. I have a 800 SF apartment in the basement I rent to a UPS truck driver. He has no door to the inside of my house or basement. The door is on the patio and there are steps to the driveway. He also gets a one car garage with its own garage door and all utilities @$1450 a month. My property tax and home owners insurance is $14856 annually.

 

[UncleDave]

I’ve seen “dollars per square ft” being thrown around for new construction, tax assesments and existing house sales. Of course it’s totally dependant upon the level of finishing but I’ve heard numbers being thrown around using the main floor only, the main floor and 2nd floor added together, the main floor and a walk out basement, and in some cases, the main floor plus finished basement. I read an ad for new construction of a two story house, no lot, for the equivalent of $220 USD / square ft equivalent when adding both the main floor and top floor. Can anyone shed some light on how it works in their area? Thanks.

Only see it used in very rough basically unfinished enclosures as a starting price loaded with asterisks, and in final assessment of a builds cost.

 

[BMWTurboDzl]

I’ve seen “dollars per square ft” being thrown around for new construction, tax assesments and existing house sales. Of course it’s totally dependant upon the level of finishing but I’ve heard numbers being thrown around using the main floor only, the main floor and 2nd floor added together, the main floor and a walk out basement, and in some cases, the main floor plus finished basement. I read an ad for new construction of a two story house, no lot, for the equivalent of $220 USD / square ft equivalent when adding both the main floor and top floor. Can anyone shed some light on how it works in their area? Thanks.

Builders in the US don't advertise using $/sqft but it is used in the US and always includes everything above grade. It's more of a guide when it comes to determining the general cost of construction in a particular area.

Most homes in the US are built by production builders and they advertise a min as completed price which changes as customers tailor the plan to their own needs in terms of amenities, room layouts, basements (finished/unfinished) etc.

Edit: Advertising based on $/Sqft seems a little sleezy imo, but builders are like that.

 

[BMWTurboDzl]

I had a custom home built last year with a walkout basement. "9'" really basement 8'7" ceiling. I have a 800 SF apartment in the basement I rent to a UPS truck driver. He has no door to the inside of my house or basement. The door is on the patio and there are steps to the driveway. He also gets a one car garage with its own garage door and all utilities @$1450 a month. My property tax and home owners insurance is $14856 annually.

Illegal ADU eh? *joking*

 

[Snagglefoot]

I had a custom home built last year with a walkout basement. "9'" really basement 8'7" ceiling. I have a 800 SF apartment in the basement I rent to a UPS truck driver. He has no door to the inside of my house or basement. The door is on the patio and there are steps to the driveway. He also gets a one car garage with its own garage door and all utilities @$1450 a month. My property tax and home owners insurance is $14856 annually.

I recall your building project. How many square ft did you end up with on the main level?

 

[Snagglefoot]

Let’s assume a 2400 square ft two story home of 1200 plus 1200 square ft. Up here, ( not talking about Vancouver or Toronto), A high end house with hardwood, granite, lots nice detaitaing, jet tub, steam shower, heat pump, a/c, lots of detailed lighting, outside rock work, etc would be $280 US per square ft. That would be a real special house. The real estate market really only supports about $140 per square ft., especially if the house is in a smaller rural type location.

 

[BMWTurboDzl]

Let’s assume a 2400 square ft two story home of 1200 plus 1200 square ft. Up here, ( not talking about Vancouver or Toronto), A high end house with hardwood, granite, lots nice detaitaing, jet tub, steam shower, heat pump, a/c, lots of detailed lighting, etc would be $280 US per square ft. That would be a real special house. The real estate market really only supports about $140 per square ft., especially if the house is in a smaller rural type location.

It comes down to the appraisal as to whether the price is supported by the local market. If it's not then the customer will have to put more money down. It's no different than buying a home in that regard. Comparable sales either do or do not support the price.

 

[SC Maintenance]

I think Its used here here in the South commonly as one of the main inputs into appraisals - but you need to compare to similarly sized homes in the very same neighborhood. When I bought my new spec home we still needed an appraisal. One of the biggest inputs was to compare similarly sized homes in the same subdivision.

Then you add and subtract based on amenities. My cursory understanding. There are no basements here - but some count "bonus rooms" over the garage and some do not.

 

[maineiac]

Only see it used in very rough basically unfinished enclosures as a starting price loaded with asterisks, and in final assessment of a builds cost.

This

 

[tyman]

They use it here, yes. We're around $100-110/sqft right now for used houses.

 

[andrew_j]

Location , location , location matters

 

[Q451990]

I think it's useful between similar homes. So if you have two homes in the same neighborhood, with similar finishes, it can be a sanity check for price. I don't see the number as perfectly linear. You'll usually see higher $/sf on smaller homes, and see it drop somewhat for larger homes in the same neighborhood. Agents, for the most part try to find homes that are similar (comparables), see what they sold for, and base prices on that. There may be a markup or discount based on market trends at the moment, and they will make some adjustment for things that are nicer or less nice between the homes.

 

[SeaJay]

As long as it is counted consistently in an area, price per square foot is a statistic that has meaning. It is not the be all to end all, and other features of the property (acreage, landscaping, garages, sheds, interior features, age of interior, roof construction, etc.) do factor in to compare properties.

 

[alarmguy]

I’ve seen “dollars per square ft” being thrown around for new construction, tax assesments and existing house sales. Of course it’s totally dependant upon the level of finishing but I’ve heard numbers being thrown around using the main floor only, the main floor and 2nd floor added together, the main floor and a walk out basement, and in some cases, the main floor plus finished basement. I read an ad for new construction of a two story house, no lot, for the equivalent of $220 USD / square ft equivalent when adding both the main floor and top floor. Can anyone shed some light on how it works in their area? Thanks.

There is "total square feet" which includes everything on the foundation, like the garage, screened in patio, really its BS muddy number to confuse buyers and becoming more and more prominent sadly. It makes the house sound bigger and gives bragging rights to buyers telling their friends not knowing its a phony number like so many numbers in our lives now.

Then there is the accepted heated sq ft which is what banks, lenders and appraisers use. This is the true number that matters. This is the living space.

 

[Snagglefoot]

Just had a few conversation with some folks and we are still waiting to check on sales this spring to see if things were hammered down in this rather remote rural location. Certainly, sales and prices in Vancouver and Toronto were hammered down but they were overly inflated in the first place.