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I am just trying to understand everything. about goin by square footage when buying a house. If you have a house with a lot of upgrades going for $122 square foot and then a house a little bigger trying to get the same pet square foot price that doesn't seem correct. so if you offer less like $113-$115 square foot with no upgrades on an older home is that a good way to measure it? What if an appraisal for a home comes back exactly what am upgraded home with same comps is, that seems like appraisal is off or could the extra square footage be the determination not the upgrades?
You shouldn't be buying a house "dollar per sqft". You should be comparing houses of similar age, size, location, and condition and seeing what those sold for. If they're similar, you don't need to look at each specific dollar per sqft. If they all sold for $x price, then it's worth $x price even if it's 50 sqft smaller or 100 sqft larger.
If they are not similar in age or size or condition, you make adjustments for the dollar amount the difference is worth to you. For example, how much value do you put on a corner lot verse an interior lot? How much value do you put on a greenbelt lot verse having a neighbor behind you? How much value do you put on granite verse formica?
It's not a dollar per sqft. It's about overall price. Larger homes get a lower dollar per sqft than smaller homes of the exact same caliber as the lots are typically the same value and you can't change the amount of land. 1 story homes get a higher dollar per sqft than a 2 story home because it's more expensive to poor a slab foundation of a 1 story home and the roofing surface is usually more, and those things cost more than building up on a smaller foundation with a smaller roof circumference.
ok then I messed up and paid way too much. the Realtors I have dealt with told me it's all about square footage. They took the $122 square footage and said tr house comps at a price then told me my offer of $113 per square footage is a deal. now I see houses with tons of upgrades going for same price as mine but only 200 square feet less. Did my house appraise because I put a lot down? meaning does it appraise more if bank tells them I am putting a big chunk down? or does that not matter? Everyone who visits my home says I paid WAY too much so that is killing me.
Trying to price a home by dollar per sq ft will only frustrate you. You cannot do it for the very reason you stated. You cannot price upgrades on a square foot basis. You are better to find similar homes and arrive at a base price then add or subtract a dollar value for the upgrade. As an example: Two homes that are identical but one has granite counters. The two homes are comps (both the same value), then consider the value of the granite counters (let's say $2000). Just add or subtract $2000 to the house in question. The tricky part becomes knowing the value of the upgrade or if the home needs repair knowing how much to discount. An appraiser will know which upgrades add value (and which don't) and how much to adjust the price.
Dollar per sq ft pricing is a trick that builders often use to make their home sound better. One builder says "I can build you a home for $100 sq ft." The other builder wants $150. But the builder that charges $150 uses top quality material while the $100 builder uses common materials. Which is better? Just because it is less per sq ft does not mean it is a better value.
What can I do now then? I am already in the home and I feel like I over paid. My realtor should have helped me better then since that's how it should be. Homes around me are gojng for same price I paid with lots of upgrades. Do you think my appraisal is not accurate?
I am pretty sure you paid too much. Don't worry, market has up and downs, and nobody can predict what's going to happen. Stressing out will not solve anything, so just relax and enjoy your home!
What can I do now then? I am already in the home and I feel like I over paid. My realtor should have helped me better then since that's how it should be. Homes around me are gojng for same price I paid with lots of upgrades. Do you think my appraisal is not accurate?
...a variation on "BUYER'S REMORSE" fueled by some insensitive / jealous / ignorant "friends" -- there is no reason to really care / worry. As long as you can afford the home you live in / it meets your needs you will be fine.
If you maintain it in good conditions and do some smart updates over the next 5-7 years it will likely appreciate at a rate better than that of competitive homes and you very well could sell / move up and but money in your pocket.
There is no way for folks way across the interwebs to know if your appraisal is accurate and honestly that does not matter all that much anyway -- the appraisal is really something that the lender wants so that if they end up foreclosing they won't be left with some unsellable wreck of house BUT as recent history shows if there is any kind of "mass devaluation" event the appraisal won't really protect anybody...
Thanks my husband wants to stay and update it, I want to sell it in 6 months because I feel I made a bad choice for us (too big) Now though I am not sure I can even sell it for what I bought it for.
Selling in 6 months is a recipe for financial doom.
Your husband seems to have a much better plan, smartly selected updates will help make the home more marketable.
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What you are dealing with is...
