Two important figures to know when browsing homes for sale are the house’s price per square foot and the average price per square foot of houses in the area. A home’s price per square foot is usually displayed on the listing and the property information sheets that are commonly passed out during an open house.
Why It’s Important to Know the Average Price Per Square Foot
This number is important for comparing it to the average price per square foot of other houses in the neighborhood, mainly to determine if you’re getting a good deal or not. In the event that you discover the home you’re interested in buying is overpriced based on the average price per square foot of houses in the neighborhood, you can often negotiate a lower price with the seller using that fact as a reason to lower the price.
An Exclusive Buyer’s Agent Can Help Negotiate a Lower Price
If you’re not good at or dislike negotiating, then you can have an exclusive buyer’s agent negotiate a lower price on your behalf. It’s a good idea to consult with an exclusive buyer’s agent when you’re searching for a house to buy because they are knowledgeable in real estate, have good negotiation skills, and only represent buyers to avoid conflicts of interest.
It is important to know the average price per square foot of a home to get an idea of whether or not it’s overpriced, priced exactly right, or underpriced. If it happens to be underpriced, then you’re really getting a good deal. Keep in mind that average price per square foot isn’t the only metric you should consider in assessing a property’s value, but it’s a factor that certainly helps in making an informed decision.
What Is the Average Price per Square Foot for a Home—and Why Does It Matter?, Realtor.com
How important is price per square foot when buying real estate?,FindWell Blog