What is used to determine the square footage (sq. ft.) price of a property? Square footage based on sale price is real simple to figure. Divide the sale price by the number of square feet.
Sometimes in a new home, a builder figures his cost to build, adds a percent, does the division and puts a price on the property.
Another way to determine the square footage price of a property is to use one or more comparable prices of properties that have sold in a subdivision or in a condo building. To this property, you would subtract or add value, based on view, location, age, type of materials, etc.
When you are going for a mortgage, the mortgage company wants to have an appraisal to make sure their loan is not above their percentage (usually 80%) of the value of the property. Of course the square footage sale price of comparables are used as part of this process
Obviously, the bottom line is still what a buyer is willing to pay and what a seller is willing to sell that property for.
Our agents here at Sand Key Realty Sales & Rentals, Inc. are here to help you with your future. Please give us a call at any of our three convenient locations. 740 S. Gulfview Blvd., Clearwater Beach (727-443-0032), 309 Belleview Blvd., Belleair (727-461-4200) or 2701 Gulf Blvd., Indian Rocks Beach (727-595-5441).
Return to Current Edition