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Rainmaker
1,498,578
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Not at all!  When agents whine about the price/sq. ft. of a listing I simply tell them: "Sure, a Ferrari and a Honda have different prices per square foot, but if you can afford a Ferrari you aren't complaining about the price... you're adding on to the car."

Jun 17, 2016 03:23 AM
Rainmaker
4,554,400
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Like a zestimate, it is something that needs to be addressed.  Defined. Explained.  Refuted.  Explained again.  

Jun 17, 2016 01:56 AM
Rainmaker
1,619,316
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Of course, it is great if you have the same sqft identical house that recently sold ( example: community or building), but when you compare house with a view and without, or single story and multiple story house, etc. with the same sqft major adjustments should be made. 

Jun 17, 2016 07:29 AM
Rainmaker
2,170,625
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Depends on the client's DISC Profile

Jun 17, 2016 04:57 AM
Ambassador
2,679,499
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Only for cookie cutter or very comparable houses.  Cancelled and maybe expired should be left out of the mix.

Jun 17, 2016 01:56 AM
Ambassador
1,446,869
Susan Emo
Sotheby's International Realty Canada - Brokerage - Kingston, ON
Kingston and the 1000 Islands Area

Not important at all in my market.  I've found that every square inch is different from one property to another - we don't have cookie-cutter homes up here.  Each home is priced on its own merits.

Jun 17, 2016 01:24 AM
Rainmaker
634,482
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

I agree with Fred Griffin and Michael Jacobs, only useful as a reference point for otherwise essentially identical homes and condos but something to be addressed and refuted if the client fixates on it.

Jun 17, 2016 07:36 PM
Rainmaker
568,572
Virginia Hepp - Mesquite NV REALTOR
Desert Gold Realty - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS

Using price per sq ft can really limit your ability to price properly.  That is one reason why Zestimates don't work.  Even in cookie cutter homes with the same floorplan.  Location within the area or subdivision is huge and hard to put a dollar amount on.  A view lot here can cost an extra $200,000.  Quality and amount of upgrades make a huge difference.  A pool can add $20K plus.

Jun 17, 2016 04:49 PM
Rainmaker
679,098
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Don't think it matters ... too many variables.

Jun 17, 2016 02:36 PM
Ambassador
5,033,416
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I tend to look at all the data, but if they are truly similar or same floor plans $/Sf will be more meaningful, and even then with views, location, it can really vary in our area.

Jun 17, 2016 01:52 PM
Rainmaker
3,986,196
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

None at all in my book....there are way to many variables to use the system

Jun 17, 2016 12:18 PM
Rainmaker
2,224,473
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

In my market I don't pay much attention to square footage price. We don't have subdivisions with similar styles and sizes of houses. One house might have a great shop with it, or a horse setup and that will raise the listing, sold or expired price per square foot. 

Jun 17, 2016 11:40 AM
Rainer
1,535
Sheila Miller-Nelson
4 Friends Properties, Inc. - El Segundo, CA
buy/hold, rehab and wholesale investors

We just discussed this at our REIA.  $/sq ft isn't a very accurate way of pricing. It doesn't take into account the condition of the property, upgrades and lot size.  Also, cancelled, pending and expired are not comps as they didn't actually sell at that price.

Jun 17, 2016 10:51 AM
Rainmaker
864,658
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

Not in my eyes. Every house is unique depending on location, feature and desirability. A bigger house is bound to have a lower $/per sqft compared to a house with smaller sqft.

Jun 17, 2016 10:41 AM
Rainmaker
5,192,989
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Another tool in the arsenal!

Jun 17, 2016 07:43 AM
Rainmaker
4,312,228
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

We don't note sq ft of room size on our MLS, so this is not an issue.

Jun 17, 2016 07:02 AM
Rainmaker
1,722,926
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Pendings the most important to us, and only a basis for a start in establishing the 'sweet spot' in the home price.

Jun 17, 2016 03:27 AM
Rainmaker
4,902,684
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

On the sold part, I think very important.

Jun 18, 2016 12:36 AM
Rainmaker
987,252
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Its fairly important in my area - it helps get a closer estimate of value

Jun 17, 2016 09:49 PM
Rainmaker
5,096,366
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Our mls took it out of our statistics almost 20 years ago... price/per square foot tells you nothing unless you are looking at virtually identical properties. And it doesn't factor in differences in condition, location, size of lot, size of garage, etc. 

Jun 17, 2016 09:39 PM
Rainmaker
7,793,734
Roy Kelley
Retired - Gaithersburg, MD

The importance varies by community.

Jun 17, 2016 08:17 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Tony and Suzanne Marriott, Associate Brokers it just gives idea about the market - some towns are more expensive than others.

Jun 17, 2016 04:29 PM
Rainer
321,564
Melissa Jackson REALTOR
Trinity Premier Properties - Azle, TX
Helping You Make The Right Move

Price per square foot is a tool we use - 

Jun 17, 2016 01:31 PM
Rainmaker
2,350,955
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

useful in a subdivision where everything is the same - otherwise I think it gets over relied upon

Jun 17, 2016 12:46 PM
Rainmaker
898,058
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

It's just another good tool.

Jun 17, 2016 12:27 PM
Rainmaker
533,500
Robert May
Robert W May - Lethbridge Real Estate - Lethbridge, AB
Real estate consulting

for me, maybe its weird, but I have never in my career of 23 years used $/sq ft because I have found it to be completely random because the range of quality of interior finishing and materials can vary by over 200%.  I know some people use that metric, but it has never proven to be worthwhile to me.

Jun 17, 2016 12:22 PM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

In generalities it is important but just as a guideline. Appraisers use it as one criteria to evaluate the property against other sold and sometimes pending properties. It by no means tells the whole story.

Jun 17, 2016 11:34 AM
Rainmaker
1,157,785
FN LN
Toronto, ON

It depends on the area among other factors.

Jun 17, 2016 06:04 AM
Rainmaker
1,237,495
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

lenders only interested in recent solds within 0.5 mile or less for most towns.

The rest allows one to list below competition. Put it too high your realtors will really freaked out.

Jun 17, 2016 05:38 AM
Rainmaker
2,809,749
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Tony & Suzanne - We've always found it interesting that it isn't more widely used in our market unless there are very direct comps. There's so much variation by type, size, location etc. that it really doesn't provide much insight.

Jun 17, 2016 05:32 AM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Tony and Suzanne Marriott, Associate Brokers In my area dollar PSF doesn't mean much with residential real estate. However, with commercial real estate it is an important aspect for pricing.

Jun 17, 2016 05:04 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It can be a good gage for market value if computed correctly.

Jun 17, 2016 04:52 AM
Rainmaker
1,525,616
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

It is very important, especially the sold comps.

Jun 17, 2016 04:44 AM
Rainmaker
2,775,931
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Makes for well-roundedness....

Jun 17, 2016 03:42 AM
Ambassador
4,658,057
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I think it is still very important, even though it isn't what appraisers use.  It still forms an opinion of value based on what other similar homes are selling for, then they just need to be compared to each other.  I take everything into account and the actives give me a good idea of what the competition will be.

Jun 17, 2016 03:37 AM
Rainmaker
1,840,236
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

According to an over-rated blog blowhard who shall remain nameless - it is what we should all be doing! Nonsense.

If you want to look & possibly see a number correlation you can do this but it's not a way to comp houses.  Even appraisers agree.  

Now there will be a different per sq ft for custom vs subdivision houses but that will also be reflected in the listing or sales price.

Jun 17, 2016 03:23 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Sold Price/SF will prove important.

The least reason is that is what a potential buyer will use.

Jun 17, 2016 02:23 AM
Rainer
45,957
Andy Madrid
Hawaii Coast Realty, LLC - Kailua-Kona, HI
Expertise, Professionalism, and Service

Good or bad, the $/per sq ft is a common denominator that the consumer will look at and base their decision on it.  Unfortunately, I've had seasoned buyers/investors look at the same number to make their decision.  I think it's important to be aware of what the $$ is for sold, active, pending to use it as a tool to talk to buyers and sellers on where they should be pricing a property but it's just one of many things that make up the value.

Jun 17, 2016 02:04 AM
Rainmaker
4,975,912
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

I look at all the available data when formulated a price. When properties are canceled or expired it may be because they were priced to high depending on the days on market. The buyers may have been sending a signal to you they didn't agree with your pricing. Looking at pending comparable gives you a snapshot of the market in real time. How long was it on market? How does the $/SF measure to recent sold properties? Lots of variables come into play and considering everything in the equation can help you anticipate what the market is doing..going up or down. Anticipating any change will keep you heads above the crowd.

Jun 17, 2016 01:20 AM