When you’re buying a home there are many things to look into: Does it meet all your needs? Can you afford it? Is it in a good location? Is is a good deal? The list goes on and on. What I want to focus on is finding a good deal. How can you figure out if you are getting a great price for a home? Figuring out what the home’s price per square foot is can be a good way to measure if the home is priced fairly or not.
If you’re looking for a good deal, find a home that has a price per square foot the same as or lower than other, similar sized homes in the area. If you’re looking at a 4 bed, 2 bath home that’s about 2,500 sq ft, look at other homes in the neighborhood that are 4 bed, 2 bath and around 2,500 sq ft. How close are they in price per square foot?
How do you calculate this?
Take the listing price of the home and divide it by the square footage. So if a home is listed for $300,000 and is 2,500 sq ft, you’ll do 300,000 divided by 2500.
300,000/2,500 = 120. So this home would be listed at $120 per square foot ($120/sqft).
This can also help you negotiate in the buying process. If you find that other homes in the area at a similar size listed at $115/sqft, you could use that as a little leverage to get the price down.
This will also help you recognize if you found a screaming deal. If other homes in the area are listed at $130/sqft, you know that the $120/sqft home is one you need to jump on.
Here’s a great 4 bed, 2.5 bath 3,549 sqft home in Gilbert priced at $109.31/sqft! Currently the average price per square foot for homes in this zip code (85234) is around $140. You definitely don’t want to miss out on this great deal! Click here to see more photos of this home.
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If you want to learn about some financing options, or if you’re looking to get pre-qualified, contact Marc Trejo at Sun American Mortgage Company: 602-743-4885.