Price per sq ft on houses means ZERO!!!!!

[2FORCEFULL]

Got no idea why Zillow and realtors advertise this,... and why the general public always use this term when it means ZERO!!!!!

price per sq ft was a marketing tool for tract homes years ago...and is worthless in todays market... price per sq ft. was used with tract homes because they all had 75 x100 lots and 2 car garages... in building price per sq ft is living/ and under roof...a 2000 sq ft w/ 1500 sq ft rv garage vs 2000 sg ft w/ 2 car garage will never have the same price per sq ft

 

[2FORCEFULL]

kinda like say'n all girls with double tit's should weigh the same.... ya gotta know how much ass comes with the tits , and tall and wide she is

 

[CLdrinker]

Can you advise the appraisers of this please.

I love that my clean well kept home with upgrades get comped against beat down piles of shit that are 50yrs old.

 

[TomD]

kinda like say'n all girls with double "D" tit's should weigh the same.... ya gotta know how much ass comes with the tits , and tall and wide she is

Fixed it for you Steve!!! LOL!!!

 

[OldSchoolBoats]

Can you advise the appraisers of this please.

I love that my clean well kept home with upgrades get comped against beat down piles of shit that are 50yrs old.

I think you live in the High Desert, right??

If so, that area is incredibly difficult to comp. Have done a ton of deals in Victorville, Apple Valley, Hesperia, Oak Hills, etc. Trust me, I know where you are coming from and have had to submit several rebuttals from appraisals out there.

With that being said, the appraiser should have adjusted for age and condition. If not, you definitely have a case for rebuttal.


Steve is correct, price per square foot means nothing.

 

[Rbcconst]

We get that question all the time. How much do you charge a sqft. Each project is different and no way to use a sqft number.

 

[79 HUSTLER]

But but but, I like the price of mine per sqft.

 

[monkeyswrench]

We get that question all the time. How much do you charge a sqft. Each project is different and no way to use a sqft number.

Yessir! In roofing, more than once I had strip mall owners say "why are you priced so much more than the two other guys?"
"Did they set a ladder? Between the chillers for the quick-e-mart, the venting for the laundromat and the God awful stench from whatever grease they cook in there, that's the price."
Detail work, pipes, drains, vents, etc., take both more time and skill. Smells? Well those were determined to be a sliding scale thing

 

[LargeOrangeFont]

Same reason new houses are worth more in Havasu than the old one next door.

Everyone knows that true home value is measured by the grip force on your hat in PSI when you walk into it.

 

[RadMan]

When I was buying my current home, they were constantly and annoyingly pushing the great deal the price per sqft was. I was going over everything one day and found out they were including the garage area in the calc. I was pissed, It was very helpful in negotiating the price down and cutting down the sellers and buyers commissions by 1% each. So I disagree and say it can be very useful

 

[CLdrinker]

I think you live in the High Desert, right??

If so, that area is incredibly difficult to comp. Have done a ton of deals in Victorville, Apple Valley, Hesperia, Oak Hills, etc. Trust me, I know where you are coming from and have had to submit several rebuttals from appraisals out there.

With that being said, the appraiser should have adjusted for age and condition. If not, you definitely have a case for rebuttal.


Steve is correct, price per square foot means nothing.

Oh when I sold my property in Hesperia in 2013.
My agent showed me the comps in my area to support her $150,000 asking price. I jumped on Zillow, Redfin and realtor.com and came up with 175k

She said fine but it will just sit.... sold in 3 days for 172k

Same for my parents rental.
Same for my wife’s house.
Got screwed on my cash out on this new one in 2015. Said my house was worth less than the house that just sold next door and was 400sq ft smaller. After I just did 20k in renovations lol


I’m not a fan of people in the real estate business most of them are full of shit.

I have a nephew who is a agent back East. His dumb ass preaches how it’s a great time to buy and rates don’t mean anything.

Yet he rents lol. Practice what you preach.

 

[LargeOrangeFont]

Oh when I sold my property in Hesperia in 2013.
My agent showed me the comps in my area to support her $150,000 asking price. I jumped on Zillow, Redfin and realtor.com and came up with 175k

She said fine but it will just sit.... sold in 3 days for 172k

Same for my parents rental.
Same for my wife’s house.
Got screwed on my cash out on this new one in 2015. Said my house was worth less than the house that just sold next door and was 400sq ft smaller. After I just did 20k in renovations lol


I’m not a fan of people in the real estate business most of them are full of shit.

I have a nephew who is a agent back East. His dumb ass preaches how it’s a great time to buy and rates don’t mean anything.

Yet he rents lol. Practice what you preach.

Maybe it was just your approach .

 

[angiebaby]

Having spent many years in construction, Jeff and his brother both use this indicator when searching for real estate. I think it is definitely something to look at, though there are other indicators also. Waterfront? Shop? High-end finishes? I'm not paying $400 sq/ft without some of these things that I feel would justify bringing the PPSF up. $350 sq/ft and is a gut job? Yeah, no. This is why so many people are moving to Tennessee. No state income tax and many, many homes under $200 sq/ft, more like $150-$175 for a nice home on acreage. $225-$250 for waterfront.

That being said, we sold our home in Reno at $445 sq/ft, but it had all high-end finishes and was recently remodeled on an acre with a shop . . . but it had dreaded honey oak cabinets, and there is a sucker born every minute.

 

[hallett21]

It’s the same for construction cost. You want a $50 shower head or a $5k shower head?

 

[pronstar]

The smallest house on the street is generally worth the most per SF…

It’s one datapoint among many.

Relying on any one data point is a fools errand, you have to look at the totality of the home and it’s surroundings.

 

[DC-88]

We get that question all the time. How much do you charge a sqft. Each project is different and no way to use a sqft numbe

It’s the same for construction cost. You want a $50 shower head or a $5k shower head?

And they all start by saying " I know it really isn't totally accurate..... but " .
The zillow data point is mainly driven by location . At the beach or on lake Tahoe is 10 times more than a little town in Iowa at $110 bucks a foot which is way less than it would cost to build it .

 

[Rbcconst]

And they all start by saying " I know it really isn't totally accurate..... but " .
The zillow data point is mainly driven by location . At the beach or on lake Tahoe is 10 times more than a little town in Iowa at $95 bucks a foot which is way less than it would cost to build it .

Right!! I ask what kind of finishes and get the oh you know the basic finishes, nothing to crazy. Reality is nice finishes.

 

[DC-88]

Right!! I ask what kind of finishes and get the oh you know the basic finishes, nothing to crazy. Reality is nice finishes.

Yeah, the white Milgards you didn't want in favor of the Marvins and La Cantina just added a legit $40 a foot to yore 2,500 ft house on one line item

 

[LargeOrangeFont]

The smallest house on the street is generally worth the most per SF…

It’s one datapoint among many.

Relying on any one data point is a fools errand, you have to look at the totality of the home and it’s surroundings.

This. My small South OC house sold for more per sqft than the houses twice the size.

I’ve never even looked at that data point on anything I’ve transacted on honestly.

 

[CLdrinker]

Maybe it was just your approach .

Oh it was piss poor for sure. She probably didn’t like being told she was wrong and then proving it.

 

[CLdrinker]

I think homes should be priced like everything else.
Ask what you want if it don’t sell your asking to much. If the bank won’t loan you enough money. Then bring more to the deal.

 

[rivermobster]

kinda like say'n all girls with double tit's should weigh the same.... ya gotta know how much ass comes with the tits , and tall and wide she is

Best post you've Ever made!

 

[pronstar]

This. My small South OC house sold for more per sqft than the houses twice the size.

I’ve never even looked at that data point on anything I’ve transacted on honestly.

Comps are good in a homogenous neighborhood where all houses are basically the same or similar.

Price per square foot plays a role (not THE role) when homes are all markedly different.

My neighborhood is a good example, houses were all custom homes when built in the early 70’s, so no houses are alIke…they’re very, very different, from both a size and layout POV.

 

[baja-chris]

When I bought in Havasu I had some people tell me I was over paying based on sqft, but when I considered ONLY comps with dual RV garages like mine, I was the cheapest in town by over $50k. When the time comes to sell it, I'll need to wait for a buyer that has to have twin RV garages like I did and will price it based only on comps for other twin RV garage homes.

 

[ChumpChange]

Oh when I sold my property in Hesperia in 2013.
My agent showed me the comps in my area to support her $150,000 asking price. I jumped on Zillow, Redfin and realtor.com and came up with 175k

She said fine but it will just sit.... sold in 3 days for 172k

Same for my parents rental.
Same for my wife’s house.
Got screwed on my cash out on this new one in 2015. Said my house was worth less than the house that just sold next door and was 400sq ft smaller. After I just did 20k in renovations lol


I’m not a fan of people in the real estate business most of them are full of shit.

I have a nephew who is a agent back East. His dumb ass preaches how it’s a great time to buy and rates don’t mean anything.

Yet he rents lol. Practice what you preach.

When I started a business bank for an investment bank back in the day, the top money manager owned no stocks. All real estate.

 

[Englewood]

PREACH!!!Price per square foot is the most unreliable way of comparison. When I hear someone use that as a ref, I instantly know they are not a savvy investor.

 

[Englewood]

Oh when I sold my property in Hesperia in 2013.
My agent showed me the comps in my area to support her $150,000 asking price. I jumped on Zillow, Redfin and realtor.com and came up with 175k

She said fine but it will just sit.... sold in 3 days for 172k

Same for my parents rental.
Same for my wife’s house.
Got screwed on my cash out on this new one in 2015. Said my house was worth less than the house that just sold next door and was 400sq ft smaller. After I just did 20k in renovations lol


I’m not a fan of people in the real estate business most of them are full of shit.

I have a nephew who is a agent back East. His dumb ass preaches how it’s a great time to buy and rates don’t mean anything.

Yet he rents lol. Practice what you preach.

You sound like someone who knows it all. I recommend doing a FSBO next time since agents are full of shit...These clients are the worst and 9/10 end up costing themselves more money in the end because they watched HGTV once and can go on Zillow. If you think Zillow's data is even remotely accurate, I have some ocean front property for you in AZ.

 

[LargeOrangeFont]

PRECH!!!Price per square foot is the most unreliable way of comparison. When I hear someone use that as a ref, I instantly know they are not a savvy investor.

Not smart money you say??

 

[Englewood]

Not smart money you say??

"Smart" money does not use price per foot. No chance...NEVER, Nada, Zilch, Zero!

 

[Orange Juice]

Got no idea why Zillow and realtors advertise this,... and why the general public always use this term when it means ZERO!!!!!

price per sq ft was a marketing tool for tract homes years ago...and is worthless in todays market... price per sq ft. was used with tract homes because they all had 75 x100 lots and 2 car garages... in building price per sq ft is living/ and under roof...a 2000 sq ft w/ 1500 sq ft rv garage vs 2000 sg ft w/ 2 car garage will never have the same price per sq ft

Zillow uses price ranges on property. They are not including the cost of your gold throne. It’s for the most part, a buyers tool.

 

[Rbcconst]

Yeah, the white Milgards you didn't want in favor of the Marvins and La Cantina just added a legit $40 a foot to yore 2,500 ft house on one line item

Or there standard Thermador or viking appliance package. Or the we could just do a polished concrete floor, that should save some money.

 

[hallett21]

Price per square ft can matter on an addition. Go find the lowest PPSF sold in the last 18 months. If your addition costs less than that PSF then it’s usually a good move.

 

[CLdrinker]

You sound like someone who knows it all. I recommend doing a FSBO next time since agents are full of shit...These clients are the worst and 9/10 end up costing themselves more money in the end because they watched HGTV once and can go on Zillow. If you think Zillow's data is even remotely accurate, I have some ocean front property for you in AZ.

Did you not read the post? I got 22k more than the agent wanted to list it for in 3 days.

Similar results for 2 other properties. So I may not know it all but I know more than that agent.

Thanks to me the agent made more commission from the higher price. And I’m the bad client?
Tell me what I did wrong?

 

[2Driver]

kinda like say'n all girls with double tit's should weigh the same....

LOL what are “double tits”? I think you are missing a D?

Not sure what happened but if you were duped by a asshat appraiser I can sympathize.