Great Price per Sq Ft!

This listing is a great example of an enticing price per square foot ratio. The home is beautiful inside, with hardwood floors all on the first level and tile floors in the bathrooms and laundry room. There is a see-through gas fireplace that can be enjoyed from both the family room and sun room. There are four large bedrooms with the master suite on the main floor, 3 full baths and another powder room for guests.

Additional living space is provided in the bonus room above the garage. For those large gatherings, the enormous kitchen has ample space for more than one chef. In short, there's room for everyone in this 3100 square foot home.

In a market where most sharp homes like this one sell for $90 to $95 per sq. ft., we have this listed at $74/sqft. Why? It has one feature most buyers do not want-- a very steep driveway. Now, we are in the south and we rarely get snow or ice, and I mean rarely, but buyers still hesitate to consider a home with a steep driveway. Therefore, we have to adjust the price enough to overcome that single objection. In the 5 years since the home was built there have been 2 owners, so not everyone takes issue with a steep driveway. And for the right price, homeowner number 3 will fall in love with this home, too.

Price per Square Foot Rules

I was just chatting with a potential seller explaining the importance of Price per Square Foot. In his case, his tax record showed approximately 200 square feet less than what he understood his home was when he bought it. That's too big of a variable to leave in the dark.

He said wanted to list his home close to $100 per square foot. Now suddenly we're talking about a $20,000 difference in price. As a buyer, he paid for the extra 200 square feet. It makes sense that he would want to include that in the sale of his home, too. But if that higher figure isn't documented somewhere, like the purchase appraisal or on the builder's blueprints, then we're left to remeasure and take what we get.

For a fee, a professional can measure a home, which is very tricky to do. That's why no two people will come up with the same number. If the new measurement is less than what the homeowner expected, without other documentation he has no choice but to use the lesser amount for listing purposes.

No one wants to pay for something and not get what they expect from the transaction. However, the liability as a seller is not worth not knowing the facts or not being honest about them. The lesson in this for the buyer is to make sure you're getting what you're paying for.