Overall price vs price/sq foot

[Vishenka69]

The house I like the most is the cheapest but has the highest price per sq foot. This really bothers DH because I'm planning on plunking another $100K in renovations into it and he think I'll price it out of the area. The house he likes is a lot more expensive but end up being much cheaper per sq/foot because it's HUGE. The hugeness scares me both in terms of the monthly payments and what the hell am I going to do with it. His house is twice as big but only 1.5 times as expensive.

How much should I worry about sq foot price vs the overall?

Re: Overall price vs price/sq foot

What does your agent say? Maybe make a lower offer with that as justification? If it is not excessively high and it is the house you like best, I say go for it. I think that as long as you don't make improvements that are too personal and will have broad enough appeal, you will be ok.

[Cumberland]

Re: Overall price vs price/sq foot

The price per sq ft is fairly impt, esp in terms of looking at the overall price. If you are interested in a 3bd/2ba 1800 SF house that is 500K, and the rest of the houses in the neighborhood are 5bd/4ba 4000SF for 500K, then the house is probably overpriced for the market, or tricked out beyond what resale may support. I would ask to see the market analysis for the neighborhood so you can compare both, and see what most houses are going for.

[Momo]

Re: Overall price vs price/sq foot

ITA
She's spot on w/this advice

I would ask to see the market analysis for the neighborhood so you can compare both, and see what most houses are going for.

Re: Overall price vs price/sq foot

I agree with looking neighborhood and area specific and asking for the comps. Are the houses in the same area?

I think that the $/sq ft is helpful but can overlook things like garages, full or half basements, new roof, lot size -- things that aren't always counted in the square footage. (Some areas seem to handle counting basement measurements differently).

If you don't feel good about the more expensive house and the bigger payment, it isn't worth it IMO.

[MDPhDWife]

Re: Overall price vs price/sq foot

The price per sq ft is fairly impt, esp in terms of looking at the overall price. If you are interested in a 3bd/2ba 1800 SF house that is 500K, and the rest of the houses in the neighborhood are 5bd/4ba 4000SF for 500K, then the house is probably overpriced for the market, or tricked out beyond what resale may support. I would ask to see the market analysis for the neighborhood so you can compare both, and see what most houses are going for.

She's explained it best. Also remember home renovations can be exhausting, so be prepared to also go over what you initially budget.

[DCJenn]

Re: Overall price vs price/sq foot

Excellent explanation of the importance of BOTH.

We were the highest pp/Sqft when we bought here the first time- but it was literally the only house for sale that we could afford. This time we bought a house twice as big but only paid two dollars more per square foot.

where does it matter? In super big or super small houses. One of the houses on the street was going for 120k. Great price. Newly renovated, all new everything. EXCEPT IT WAS 615 SQ Ft.- which was 209/ Sq.ft. - almost double what any other house on the street or in the 'hood was going for.

Jenn

[Vishenka69]

Re: Overall price vs price/sq foot

The house was build in 1938, I don't think I can get much info on the builders. It's in a great location on a corner lot with finished landscaping, 2 new stone patios and a recently finished basement (that looks great) but doesn't count toward the sq ft. The realtor said that we should offer at least 12% less than asking and not pay much more over that (asking-12%). Since 99% of the renovations I want to do is bathrooms (original) and the kitchen (recently done but very cheaply and ugly), she doesn't think they'll overprice the house.

I'm just super paranoid of buying the wrong house. Thanks for all your help.