Don’t be misled by price per square foot calculations.
That is not an accurate measure of property value.
The only correct method is to calculate
the value of the lot plus
the value of the” improvements”
[aka house, guest house, tennis court,
garage, motor court, gated, etc].
Price per square foot ignores critical factors like the existence – or non-existence of a View, Pool, Flat Yard, Privacy, etc. It also does not include any price adjustments for the condition of the property: Newly Built, Recently Updated, Older but Livable, or in need of Total Renovation.
It also does not consider at all the Quality of appliances, fixtures, material, or the Desirability of the design.
But the most critical factor that is not included is :the value of the LAND and the size of the lot.
In other words, Price per Square Foot measures only one thing:
the size of the actual living space .
And that is only one of many factors that determine value.
the size of the actual living space .
And that is only one of many factors that determine value.