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Replies (1)
- Suzie Crudo, "Wholenewattitude"
- Contributions:16
So many factors account for the value of a property. I do not know any
appraisers that work off "price per sq foot:" as that is not how they value a
property.Many times there
are items with each and every property that make it unique.Like yours is with a garage.
You can see
for yourself why the formula makes no sense,which is why appraisers and some
agents do not use it.
The value of the land,location,and lot site have
basic value. Each location is different even in a condo development. What does
it face? Interior or exterior parcel? Does it back to a main street? pool?
All evaluations calculated are based on sq footage under HEAT and
AIR,not total sq footage,unless it is ALL under heat and air.A terrace has a value,only compared to how many other
units have a terrace? If they all did..only this one is bigger..well it is only worth a little more.If the terrace is a big upgrade to other
units,yes it is worth more.Only proportionately more.Not based on price per sq feet unless it was under
heat and air.
The garage,again, is not under heat and air so it cannot be calculated that
way.
Once a true appraisal is done comparing each unit on a case by case basis,the
price per sq foot will be a LOT smaller the larger the unit is.
It is just the way it works out.Once the appraisal is done correctly by a certified
tradesman.
You must look at like size units.If another comp is say 700 sq feet bigger ( which
for a buyer is not even close to the smaller unit)
They take a PORTION of the DIFFERENCE at a different rate.
The 425 sq feet may only be calculated at 150 per sq feet.
The difference is not calculated at the same rate.
As I mentioned you MUST pull out the land or lot,site or location value.
IF the local is worth 150,000 then the UNIT is only worth 605,000 or 384.13 a
sq foot.
That is why it cannot be done with a broad stroke.
and all values are based on under heat and air
If you have a new a very desirable complex or local,it can raise all values
as well.
YOu need an appraiser.
Remember they can change daily with new listings,new sales,and new distress
homes up.
How do price per square foot statistics impact property valuation
E.g., my 1575 sq ft condo is zestimated at $755K at $479 per sq ft, and it has a garaged parking spot. But the per sq ft price factors in the parking spot, and it shouldn't. Instead, the value of the parking spot should be added after the value of the condo unit. Here's why:
Suppose that my condo were 2,000 sq ft instead, also with a parking spot. Using Zillow's $479 rate, it would be now worth around $479 X 2,000 = $958,000, everything else being equal. But that would be the improper way to calculate it because the intrinsic value of the parking spot is factored into the per sq ft price and then multiplied by the larger sq footage. This is wrong because a parking spot holds a constant value regardless of how large the condo is itself.
I understand that Zillow's formula is not as simplistic, but many people comparing units based on the $ per sq ft would be fooled when they see a high price per sq ft AND a parking spot, while the same condo without the parking spot would have a lower price per sq ft.
I also appreciate the fact that size is subject to manipulation, but as housing goes, it is as close to being the objective equivalent of a used car's mileage as any other factor.
2. A few of my neighbors have private 2,000 sq ft terraces for their 1,200 sq ft condos. The public facts show only the 1200 but not the ridiculously huge terrace. There is no way for this fact to be factored into Zillow that the algorithm would catch. It just has a check box for balcony and a description.
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