I don’t hear as many people talk about this as much as before but if dollars per square foot was all you need then banks wouldn’t require appraisers when they gave loans. If it was that simple then sites like Zillow wouldn’t have to work on an algorithm to come up with their Zestimates
About the only place I can see where this metric works is for condos and large developments where they have built the same floor plan over and over. The dollar per square foot metric doesn’t and can’t take into account the floorplan, condition, upgrades, lot size, amenities, views, shape of the lot, and individual taste.
I have had plenty of clients be shocked when a home with 200 sf less than a previous home actually felt bigger. Floorplan layout is one of the biggest factors to a home selling especially once you get past 2000 sf. I could keep beating this but if you just look at comparables you know if a house is priced within range without taking the time for this useless math problem.
