Suggestion 3 of 5 - Five Ways To Determine The Value Of Your Home

Square Foot Pricing

Some neighborhoods are a mixed bag of architecture, style and size, which means if you can't find another home similar to yours, you can use square foot pricing. Take 3 - 5 homes as similar to yours as possible, add up the square footage and divide by the number of homes. This will give you an average per square foot for your comps. Then, add up the sold price of each home and divide by the number of homes to get the average. Lastly, divide the average sold price by the average square foot to get the average price per square foot. Once you have the average price per square foot, multiply it by your home's square footage.

 

 

Example:

Step 1: Find the average sq. ft. of comps

Home 1: 1,950 square feet
Home 2: 2,400 square feet
Home 3: 1,800 square feet
Home 4: 2,050 square feet
Total: 8,200 square feet

8,200 / 4 = 2,050 sq. ft.

2,050 is the average sq. ft. of your comps

 

Step 2: Find the average price of comps

Home 1: $310,000
Home 2: $410,000
Home 3: $299,000
Home 4: $325,000
Total: $1,344,000

$1,344,000 / 4 = $336,000

$336,000 is the average price of your comps

 

Step 3: Divide the average price by the average sq. ft.:

$336,000 / 2,050 = $164/per sq. ft.

$164 is the average price per sq. ft. of your comps

 

Step 4: Set the price of your home:

Take $164 and multiply it by your square footage to get a price. For example, if you have a 1,975-square-foot home, multiply it by $164 (e.g., 1,975 sq. ft. x $164 = $323,900).

And presto…there’s your price. $323,900