(July 18, 2013) – Square footage represents the quantitative attributes of a home while ignoring the quality of a home.
Qualitative factors include location, age, number of bedrooms, condition, lot size and improvements.
Price per square foot is a valuable tool when applied to specific local markets, particularly in homogenous communities and neighborhoods. Examples of homogenous residential communities are developer owned subdivisions, condominiums, townhouses and multi housing developments.
By contrast, Sedona has a wide range of mostly inconsistent neighborhoods in unique and diverse geographical settings, where mobile and manufactured homes can be found close to upscale subdivisions. Therefore the price per square foot approach by itself is unreliable and often misleading when comparing individual homes unless it is applied in the right context.
Price per square foot can be very useful to:
- Identify which price segments of the Sedona market are leading and which price segments are lagging
- Get a snapshot of our local market condition and make a better educated decision in the buying and selling process.