How do you estimate the cost per square foot of a home?

Answer 1

The simple calculation is to divide the cost of the home by the number of square feet in the home. Typically, internet sites such as Zillow will do the work for you and list the price/square foot. There may be a big difference between the price per square foot on the asking price and the price on homes that have actually sold. In both pricing your own home and making an offer on a home that you'd like to buy, it's important to see the price per square for homes that have actually sold.

You need to pull a report of the homes for sale in your area. You can do this by visiting one of the sites on the web that offer that service, or by contacting a local real estate agent. How much are the comparable homes in your area charging per square foot? Do you have more upgrades or less than the comparable homes? Take the average of all the information and calculate your own price. Granted it needs to be reasonable.

You can also call an appraiser out to make an official estimate. They cost anywhere from $250 to $350. They will measure your actual square footage and give you a full report. Its probably something you will have to pay for as a seller anyway when you plan to sell your home.