Cost Per Square Foot Can Be Deceiving
Determining which home to buy based only on the cost per square foot of the property is like trying to complete a jigsaw puzzle with many of the pieces missing. You won’t get the whole picture.
Sometimes realtors use these numbers, featured prominently in MLS listing, as a way to weed out properties to show their customers. Prospective homeowners, assuming their realtors know the local market, rely on the realtor’s knowledge to lead them to the right properties to consider buying. Buyers may gravitate to the cost per square foot number as a way to navigate through the details but the cost per square foot figure rarely tells the whole story on a property.
When either a self-educated buyer or a realtor focuses on the cost per square foot of the property, without discussing the home’s other factors which contribute to its true value, the buyer will be missing facts they need to make an informed decision. Multiplying the average price per square foot by the square footage of a home simply gives one average or median ranges—showing trends. Such a calculation cannot compute value.
Land Costs & Neighborhood If the home you are considering is built on a prime lot in a lovely neighborhood, the home site will add to the cost per square foot. If covenants exist wherein each home must meet certain standards to be built within the community…like a full-masonry front, a paved motor court, select window…that can add to the cost, as does the neighborhood amenities such as the golf course, pool and spa, tennis courts and clubhouse.
Good Design A home’s ultimate livability must be considered. Additional square footage consisting of long hallways, soaring rooflines or overly grand entryways can contribute to the cost per square footage without adding to the home’s functionality. The home must be designed to create an optimal lifestyle. Also, in Florida outdoor living space is extremely important and the outdoor living space is not calculated in the cost per square foot.
Premium Finishes & Materials. If you’re buying new construction or a newer home, make sure to pay close attention to the details. The materials and finishes are extremely important and are not part of a cost per square foot calculation. Builders know this and can use cheaper materials to cut costs. Some examples are: ? inch thick planked hardwood floors cost more than 3/8 inch three inch thick flooring, marble and granite kitchen countertops and shower stalls are more expensive than quartz and tile, impact glass doors and windows, high-end cabinetry, and the use of top-of-the line fixtures…all will affect the price of the cost per square foot of a home. In my opinion, using superior materials is money well spent!
Penny Wise, Pound Foolish As we have all learned along the way, least expensive isn't the cheapest. Shoddy quality, undisclosed costs and unreliable work soon reveals that most bargains aren’t bargains at all. Buyer BEWARE!!!