Price Per Square Foot Study
The first most common question I am asked as a Realtor is, “How long has this home been on the market?”
This might be a valid question but it might not be. Really this question is how long and have there been any price reductions.
The second most common question I am asked as a Realtor is, “What is the price per square foot?”
Is this a valid question? Sure any question is valid but this one can be extremely misleading. Why?
First this question is misleading because it is tied to the neighborhood. The neighborhood and city are huge dictators of price per sq ft. The average price per square foot of a detached entry level home in Laguna Niguel might run in the $350 per sq ft range but will be higher for very small detached homes or much higher for larger custom homes.
I recently did a study of six months of home sales in the Regatta gated community in Dana Point. The homes in Regatta range from about 1700 sq ft to about 2400 sq ft. The condition of the homes vary greatly as some are 30 years old finishes and a few have been totally remodeled. The other huge factor in determining price is the quantity and quality of the ocean view. The price per square foot for the Regatta community in the last six months, which included about seven sales, ranged from $517 to $760.
The conclusion is that LOCATION and CONDITION ARE THE TWO MOST SIGNIFICANT FACTORS in determining the real price per square foot value of the property. Therefore it is fine to review the price per square foot but a home buyer may be seriously limiting himself or herself if this is always their deciding factor.
For expert real estate advice and representation please call Ron Buck with Keller Williams Realty bre01364665 at 949-456-0505.