Pricing by the Square Foot
As home prices in our area continue to hit record highs, how do you, as a buyer or seller, measure the value of one particular house in relation to others? The common method is called the “market comparison approach.” Professionals look at “comps” to evaluate how to set an asking price and to assist buyers with what to bid on a home offered for sale.
There is another method — looking at the price per square foot (ppsf) — that is very useful, but seldom discussed. Understanding the relative cost, based on the actual size of the property, could be the difference between making a wise or imprudent buying/selling decision.
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