U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Other Topics
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply Start New Thread
 
Old 10-18-2006, 04:57 AM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 10,206,804 times
Reputation: 925

Advertisements

I consider price per square foot more accurate than median price. Reason is because with median price, I have no idea what size house they are talking about. An area can have a high median price but also have alot of nice big houses on big lots. Two areas can have identical median prices but one area may be the better deal as you get more house for the same money!

When the price per square foot is given, I can get a much better idea of the relative expense of said area. Ill be knowing how much house I can buy for the money. A low price per square foot means you can get alot of house for the money. A low median price could mean most of the houses in that area are old and tiny with tiny lots and going by price per square foot may actually be a bad deal!

Incidentally, what is the price per square foot in your area(specify area name)
In my area of West Palm Beach, the price per square foot appears to be $180 on average. Ive seen as low as $140/foot and as high as over $300 a foot but this is rare. Most houses appear to fall right around $180/foot. Even at $200/foot is considered on the expensive side. More than that is very expensive!
Reply With Quote Quick reply to this message

 
Old 10-18-2006, 04:01 PM
 
Location: Anne Arundel County MD
262 posts, read 1,564,158 times
Reputation: 483
My house was cheap at $275/sq. ft.

Based on my other posts you know I don't find this to be an accurate measure of a home's value b/c there are SO many factors besides size. My house is under 1500 sq. feet.
Reply With Quote Quick reply to this message
 
Old 10-18-2006, 08:47 PM
Red
 
32 posts, read 131,099 times
Reputation: 31
Default not a completely accurate way to judge value

Price per square foot is only one of the many factors you should compare. I know of one house near us that just sold for $41/sq ft and another house that sold for $308/sq ft. Given just this information, you'd say that obviously the $41/sq ft house is a better buy, but if you saw the houses I doubt that you would have picked it (the other was about as high end as you can get--custom everything, huge kitchen with commercial appliances, slab marble countertops in the kitchen, baths, and laundry room, geothermal hvac, radiant flooring throughout the house, etc). In all of the appraisals for residential properties that I've seen, they look at comparables--ie other houses that have sold recently that are more similar to the subject house. When they look at comparables, they make adjustments for the differences in the houses before they calculate a $/sq ft so just dividing an asking price by the sq footage on 2 different houses will not give you a realistic measure of value.

I think it's admirable that you want to find a place to live well off of less, but sometimes it's easy to overanalyze things to death. Find places you like for everything else those places have to offer, and then if you want to narrow it down by housing cost go for it.

--Red
Reply With Quote Quick reply to this message
 
Old 10-18-2006, 08:50 PM
Red
 
32 posts, read 131,099 times
Reputation: 31
Forgot to mention--I agree, median price is not an accurate way to judge housing prices either. There are neighborhoods in every city that will be much higher and neighborhoods that will be much lower than the median--it's usually pretty obvious why there is such a difference when you drive through these areas.

--Red
Reply With Quote Quick reply to this message
 
Old 10-18-2006, 11:20 PM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 10,206,804 times
Reputation: 925
Id rather know the P.P.S.F than median because itll give much more info about affordability. The median price here is $360k or so, maybe a bit higher. This doesnt tell me much. The P.P.S.F of $180 tells me alot more. Most people couldnt afford a $360k house but at $180/foot they can get a 1000 feet 2 bedroom house for $180k.
Reply With Quote Quick reply to this message
 
Old 10-19-2006, 11:01 AM
 
Location: Anne Arundel County MD
262 posts, read 1,564,158 times
Reputation: 483
But will a 1000 sq. ft house be available at that price?

In other words the price per square foot is highest in low sq. foot homes. Each additional sq. foot on a house will cost increasingly LESS - economies of scale at work.

So, in my neighborhood, a 1200 sq. foot house like mine would sell for approximately $275-325K, but a 2400 sq. foot house would probably NOT sell for $550K - $650K, unless an old home was torn down and a newer one put up. You could find a comparable house like that for $425K. The price per square foot in each house is VERY different.

Also keep in mind that price per square foot is more expensive in ranchers since more land is required than in 2 story homes. Land is the bigger factor at work here. Think about town homes...

Anyway, food for thought, as many have advised you, don't oversimplify or overanalyze... this is a good topic but not really relevant to many homebuyers.
Reply With Quote Quick reply to this message
 
Old 10-19-2006, 05:40 PM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 10,206,804 times
Reputation: 925
price per square foot acts to serve as a barometer or measure of how expensive property is. An analogy would be price per gallon of gas. Yes small houses have a slightly higher price per square foot than big houses because small houses occupy more surface area and land area in relation to geometric volume. Another way to think about it is take 2x 1500 feet houses. Its more work to build two of those and more land is needed for two of those houses because of the space between each vs. 1x 3000 feet house. Going by the price per square foot one can assess the fact the bigger house has the lower price per square foot even though overall its more expensive.
Reply With Quote Quick reply to this message
 
Old 10-19-2006, 05:49 PM
MHT
 
434 posts, read 1,621,832 times
Reputation: 137
Default ppsf

Quote:
Originally Posted by Need_affordable_home View Post
price per square foot acts to serve as a barometer or measure of how expensive property is. An analogy would be price per gallon of gas. Yes small houses have a slightly higher price per square foot than big houses because small houses occupy more surface area and land area in relation to geometric volume. Another way to think about it is take 2x 1500 feet houses. Its more work to build two of those and more land is needed for two of those houses because of the space between each vs. 1x 3000 feet house. Going by the price per square foot one can assess the fact the bigger house has the lower price per square foot even though overall its more expensive.
I think you're over-analyzing. Find somewhere you want to live. Then check on housing costs. I have seen places where the housing costs were great - but I sure wouldn't live there! You really can't go just by ppsf either. Small homes do not always have a lower ppsf than large homes. There are a lot of variables.

We just built a house. Where we live the lowest bid we got was $90/sf. That was a very basic house. No extras. We were the contractors and with many upgrades we built a great house for $52/sf. Ceramic tile, radiant heat in the bathroom floors, extra insulation, granite countertops, etc. I am now the contractor for some friends. Their house is smaller than ours but is costing more per s.f. because of their upgrades.
Reply With Quote Quick reply to this message
 
Old 10-19-2006, 06:00 PM
 
Location: Marion, IN
8,192 posts, read 19,604,251 times
Reputation: 6639
Be careful using that as a guide.

I paid just under $17/sf for this house. It needed A LOT of work. If I wanted to sell right now it would be $48/sf.
Reply With Quote Quick reply to this message
 
Old 10-19-2006, 09:50 PM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 10,206,804 times
Reputation: 925
Then I will compare apples to apples. Your $48/foot vs. my $180/foot where I live. This is almost quadriple the cost!
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Other Topics

All times are GMT -6.

© 2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top