Michelle Duchene in Downtown Orlando asks-“All the houses in my area are selling for about $200 per square foot, but I keep getting offers in the $175-$190 range. I have one of the biggest houses in the neighborhood and my agent agreed that we should list my house for $205 per square foot because I’ve made many upgrades and updates. It’s been on the market for a while and now my realtor wants me to either drop the price or consider one of the lower offers. What do you think?”
There could be several factors at play. It could be that the crude “price per square foot” analogy is oversimplified for your property. This formula considers only ONE aspect of your home- its size. Looking at the formula, if a house that is 1600 sq/ft sells for $280,000 and a house that is 1200 sq/ft sells for $245,000, the price per square foot of each is roughly $175 and $204 respectively. The smaller house does sell for less, but this translates into a higher price per square foot.
You mentioned that your home is one of the largest in the neighborhood. The prior example would indicate that a larger home would equate to a lower price per square foot and not a higher one. I would avoid averaging price per square foot and look more closely at the other properties against which you are competing. Try to price yourself within that price range, being careful not to price yourself out of the market. Also, do the other properties have amenities or features such as a pool, garage, fireplace, etc. that you do not?
Ask your realtor to prepare a Comparative Market Analysis that includes comparable properties only and makes adjustments for the differences in features and condition. You may want to consider having an appraiser prepare an appraisal as this would likely be the most accurate.