From The ValuVault: Price Per Square Foot — Tool, Not the Rule

01/08/2025 1 min Temporada 3 Episodio 12
From The ValuVault: Price Per Square Foot — Tool, Not the Rule

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Episode Synopsis

Charlie Johnson unpacks why “price per square foot” can point you in the wrong direction—and how to use it the right way.– PPSF = sale price ÷ living area; quick, but not value by itself – Not all square feet are equal: updates, layout, construction quality, location, lot size, pools/garages all shift value 📏 – Some spaces aren’t counted in GLA (e.g., many finished basements are below grade) – Appraisers use PPSF as a secondary check after market-supported adjustments for condition, amenities, and appeal📌 Appraisers: Treat PPSF as a cross-check; lean on paired sales and local standards (especially for below-grade/bonus areas). 📌 Buyers/Sellers: Look past the number—verify what’s included in square footage and compare true like-for-like comps.Price per square foot is a helpful marker—not the finish line. Context wins.