How much does your home’s square footage affect its value? There are several factors to consider.
If you own a two-story, 3,000 square foot home that Zillow says is only worth $275,000 and you’re comparing it to a home across the street that’s also 3,000 square feet but has just sold for $350,000, why is that?
If the home across the street is a ranch-style home where all 3,000 square feet are on one level instead of two, your home won’t sell for the same price. One reason for this is ranches are much more desirable in our Charlotte market. Secondly, ranches are more expensive to build. The base of a ranch home is much larger, and it’s more expensive to build out than it is to build up because that involves more concrete, more plumbing, and more structure to be built around the property. This is why when you see homes that are $20 or $30 more per square foot for a single level, you can’t compare that.
What about homes with basements? What if your home is 6,000 square feet with two stories and a basement and all the other two-story, 6,000 square foot homes without basements are selling for $125 per square foot?
Your basement doesn’t cost as much to purchase as a home whose two stories account for all 6,000 square feet because your home’s square footage is 4,000 feet above ground and 2,000 feet below. That basement in general, depending on what sort of finishes it has, could be 30%, 40%, or 50% of the actual square footage cost of a home that has two stories instead of three.
If a home across the street sells for $500,000 and it’s the same square footage as yours, be careful in assuming yours will sell for $500,000 too. You don’t know what upgrades that home has had or if the previous homeowners made any structural differences to make it a completely open floor plan. If both of your homes were built at the same time, that kind of renovation and other kinds of renovations might make it look newer than yours.
When it comes to making sure you know what your home is worth, you have to do a full equity evaluation that will account for square footage to a certain degree, but also the overall condition of a home, what upgrades have or have not been done, the location, and—most importantly—supply and demand.
In addition to the square footage, all of those factors determine the value of your home.
If you have any questions about this topic or you’re thinking of buying or selling a home in the Charlotte area, don’t hesitate to reach out to me. I’d love to help you.