How to Calculate Your Home’s Square Foot Price

If you found yourself here by searching “My home’s estimated value”, you’re in the right place. The most common mistake we see sellers making this: they simply use the overall price of similar homes in their market to estimate their own home’s overall price point. There’s a lot more to it!

Don’t worry, this is a mistake that sellers make often - you’re not alone if you’ve miscalculated your home’s price! It’s a fairly simple mistake to correct.

In the beginning stages of selling, when buyers are considering putting their home on the market, they’ll start by estimating the square foot value of their home. Yes, is process begins by finding other similar homes on the market and checking out the prices of those homes, but there’s a lot more to it. This is when the mistake takes place: sellers will take the similar property’s sale price, and attempt to estimate their own home’s square foot value with the similar property’s price. 

In theory, this gives the seller the price per square foot of the property. But here’s the catch: that home’s price point doesn’t just include the building itself. It also includes the land and any fancy amenities. These additions will cause a seller’s calculations to overshoot the other property’s price per square foot, and if they use this incorrect value, they will unavoidably miscalculate their own home’s square foot value.

So, first thing’s first in how to figure out the value of a home

How do I calculate my home’s estimated square foot value?

Calculating the square foot price of a home can be a daunting and complex task. While there is no way to perfectly estimate the square foot value of a home, there are specific factors to consider to make your calculations as accurate as possible.

Yes, the first step is to consider is the current market value of similar homes in the area. But don’t stop here. Be sure to research recent sale prices for similar homes and take into account factors like age, size, condition, and location of the property. These factors provide an indication of the range of values that can be expected for a property. If you want to be extra thorough, looking at multiple listings for comparable properties in the area is a great way for sellers to find clues as to what buyers are currently willing to pay for similar homes and properties. Use trusted real estate websites and agents in the area to find accurate costs and home stats. 

In addition to considering other market value prices, it's crucial to consider other aspects like unique features and amenities that may add to or detract from the overall square foot value of the home. Ideally, when calculating the square foot price, these costs will be subtracted from the overall price of the home. These values can be trickier to estimate because knowing about specific amenities requires more digging and in-depth research. For example, high-end appliances or granite countertops could add significant value while an unfinished garage or cracked asphalt driveway would normally detract from the property’s overall value. Any general upgrades or enhancements to the property in question should also be considered since they could potentially increase the overall square foot value of a home significantly.

Pro tip: After calculating their square foot price, sellers should also take into account any other costs associated with buying and owning a particular property. Consider things like closing costs, taxes, insurance premiums, and maintenance expenses (either now or in the future), as all might impact how much money a buyer would be willing to spend on the seller’s property. With all this in mind, the seller is able to calculate the square foot cost of a similar home.

How to use the square foot price to estimate my home’s value?

Once the seller has subtracted these “extras” from the price of the home - the cost of the surrounding land and amenities - they will have a more accurate representation of the cost of the building itself. 

Divide this number by the building’s square footage. The number the seller is left with is the most accurate representation of the estimated cost of how much per square foot the home will likely cost on the market.

A seller is then able to use the value representing the square foot price to estimate their own home’s price. 

To do this, the seller should multiply the square value of the comparison property by the total square footage of their home. Figure out how to calculate the square footage of your home.

This final number is going to be the seller’s most accurate home value estimate or their best estimate on the value of the home. That should be enough for now! If you’re further along in the process of selling your home, take a look at an in-depth guide to the worth of your home.

All these calculations can be daunting - we get it! Our expert team is here to help crunch numbers. Get in touch with Denovo Realty for support. Or, if you’re wondering what homes around Space Coast are valued at, take a peek at our featured properties and average house prices in Florida.

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