The Home Ownership Thread

[RedLantern]

At least around here, $/SQ is highly variable depending on so many factors, #1 being size of the house. Smaller houses have a much higher $/SQ. For example, a 2br/1b 1000sf starter home might fetch 350K, but a 3br/2ba 2000sf house in the same condition in the same neighborhood might be like 550k.

You might be able to compare $/SQ of similar use value homes (starter home vs starter home, or family home vs family home), but even then there will be so many other factors like condition, landscaping, curb appeal, etc.

It sounds like $/Sq is your only objection, but you've also stated that it's superlative in many respects. I would go for it.

 

[RedLantern]

And happy wife = happy life.

Rule #1

 

[Ataturk]

The value of a house is in land + improvements. Sometimes the land is worth more.

Anyway, $206 is, what, 15% higher than $180? That's not that much.

 

[Ataturk]

Speaking of land, I am considering moving... sideways. There's a not-so-great late '70s house on two three-acre lots 25 minutes from downtown. It's a bit smaller than the house I have now, has a shop and a barn, but they're crummy. The good part is that the house only occupies one lot. I'd really like to buy it and build myself a house on the other lot. I've always said I wanted to build a house, but I'm not sure I actually would (or that Mrs. Turk would let me). I might be able to pull it off if it was right next door.

The problem is that nobody seems to want to buy older houses even if they're fixed up. Not sure how much that 3 acres would end up costing me. Maybe I'd be better off just buying some land, but there's very little of it for sale up there.

 

[RedLantern]

I just reject $/sq as a valuable pricing model for a lot of areas. In track housing sure, the RE is basically fungible there but elsewhere it is highly personal and subjective.

 

[brokencycle]

So we found a house we both liked this weekend. 20 minutes from our current place and in the school zone my wife approves of. The price seems within reason given housing prices in general and wanted to get people's thoughts. Realtor is basing comps on total price and not price per square foot. Houses have sold for mid-$180s per sq foot up to $205 per sq ft. This house comes in at $206 sq/ft. and have been maintained quite well. I could not find any issues and we would not need to move in and paint anything. This is the most move in ready house we have seen. Thoughts on pricing? What is too much of an increase?

Our open house went well. Had 13 groups come through and the most interested asked a ton of questions and stayed for over an hour. We will see what happens!

When looking at it house I found since research on size and dollar/SQ ft. I can't recall the numbers, but large houses should be lower generally speaking when comparing apples to apples. With they being said, there are exceptions like if you have a large house in a desirable area where all other options are small.

I would do my own compares. Look at a dozen or so sold houses in the last 3 months.

 

[Piobaire]

My issue is out of hand rejection of an established model with the sole rationale being "total price." How about features, finishes, surfaces, etc? The realtor is trying to be glib to cover something they don't want to explain logically and is failing.

 

[jbarwick]

Thanks everyone for the insights.

My issue is out of hand rejection of an established model with the sole rationale being "total price." How about features, finishes, surfaces, etc? The realtor is trying to be glib to cover something they don't want to explain logically and is failing.

This is something we have thought about. This house has been maintained well compared to others we have looked at. The house we put in an offer on was ~10 minutes closer but would have needed new windows $30K minimum and the kitchen was original and brush painted over will glaring issues. Sold for $15K more than this is asking. I would argue yard was less usable and taxes were more.

 

[Ataturk]

There's also the undeniable fact that it's a seller's market right now, and that drives prices up. Houses are worth what people are willing to pay.

I wonder whether it might be better to wait a few months until the recession really starts to hit people. But I would have said that a few months ago.

 

[SirGrotius]

In my area outside of Philadelphia, the price per square foot is bandied about quite a bit on Zillow etc. but it seems from a psychological standpoint, people are more focused on the big-picture, asking price of the home relative to homes in the neighborhood, etc. This is important for getting people to part with their property.

I have seen variance in price per square foot based on as you said the condition, updates, and occasionally additional features, such as pool, additional garage, landscaping. To be it's been more of an indicator of quality/updates than the actual movement of the property if that makes sense.

 

[Omega Male]

SF single family homes for sale up 90% from same time last year. Inventory now at highest level since the Great Financial Crisis. Bay Area probably getting hit hardest as the tech jobs go long-term remote, but this will surely be the COVID trend in other major metros too? SF rents are also down 11% (1BR) to 15% (2BR) yoy.

For-sale homes in San Francisco hit recession-level high

The number of homes for sale in San Francisco hasn't been this high since the great...

www.sfgate.com

 

[NorCal]

Thanks everyone for the insights.



This is something we have thought about. This house has been maintained well compared to others we have looked at. The house we put in an offer on was ~10 minutes closer but would have needed new windows $30K minimum and the kitchen was original and brush painted over will glaring issues. Sold for $15K more than this is asking. I would argue yard was less usable and taxes were more.

Price per sq foot can suck a dick. If you like the home, it fits your budget, and the price is in keeping with the market, buy it and don't second guess. Also, its a seller's market, so looking backward is always a little pointless when determining the price.

 

[NorCal]

I just reject $/sq as a valuable pricing model for a lot of areas. In track housing sure, the RE is basically fungible there but elsewhere it is highly personal and subjective.

This is the correct answer. Small differences matter and don't show up on price per sq foot. What do you see when you look out your window? What is the exposure to the sun? A half a block can make a huge difference in terms of noise levels, privacy, etc. And layout matters, you can fix ugly finishes but you can't fix layout.

 

[Joytropics]

Finally got a place under contract myself.

I'm trying to steel myself for a crap inspection, and be prepared to start the search again.

San Francisco may be tanking, but stuff in the middle of the country is red-hot right now.

 

[Piobaire]

Looking at the cost per square foot does not mean one looks at nothing else as has been mentioned, i.e. finishes, fixtures, etc., however, tossing out that metric completely for...reasons...is even more foolish than just going by the cost per sq foot. Do a balanced comparison of comps.