Home Values - Some Thoughts on Dollars Per Square Foot

Consider evaluating the "dollars per square foot" as far as the cost of buying a home. To do this, simply divide the sales price by the number of square feet of the home.

You will find that I have done it for some locations, but have also looked at it differently than you may. I look at what the cost is based upon the total square feet of the home, and the total FINISHED (livable space) square feet of the home. If the basement is not finished, but is counted in the total square footage, you will need to figure that it will cost anywhere between $15 and $27 a sq. ft. to finish the basement area.

Example: A home in Cedar Hills has a total of 3,260 sq. ft. but only has 2,700 of it finished. The home is on the market for $345,000. Is it worth it? If you calculate the $/sq. ft of this home you get $106 / total sq. ft, and $128 / finished sq. footage. Based upon the numbers below, I would have to say that the home is priced too high. Of course, factors like the yard, the home condition etc. are not really broken out for this evaluation. I would be offering around $326,000 for it without seeing it...

Homes Sold in the Last 90 Days:

DRAPER, UT.

$400,000 and $500,000 price range:

• Price for total square footage of home: $104.30 / sq. ft


• Price for the total finished square footage of home: $117.20 / sq. ft.

ALPINE, UT.

$300,000 to $400,000 range:

• $94 / total sq. ft


• $188 / finished sq. ft.

$400,000 to $500,000 range:

• none sold

$500,000 to $900,000 range:

• $119 / total sq. ft.


• $134 / finished sq. ft.

HIGHLAND, UT.

$300,000 to $400,000 range:

• $96 / total sq. ft.


• $149 / finished sq. ft.

$400,000 to $500,000 range:

• $94 / total sq. ft.


• $127 / finished sq. ft.

$500,000 to $900,000 range:

• $121 / total sq. ft.


• $166 / finished sq. ft.

CEDAR HILLS, UT

$300,000 to $400,000 range:

• $88 / total sq. ft.


• $119 / finished sq. ft.

$400,000 to $500,000 range:

• $92 / total sq. ft.


• 100 / finished sq. ft.

$500,000 to $900,000 range:

• no sales

PLEASANT GROVE, UT

$300,000 to $400,000 range:

• $99 / total sq. ft.


• $131 / finished sq. ft.

$400,000 to $500,000 range:

• $92 / total sq. ft.


• $132 / finished sq. ft.

$500,000 to $900,000 range:

• $90 / total sq. ft.


• $134 / finished sq. ft.

I am watching the numbers for several areas and will be posting updates in the near future. IF YOU HAVE SOME AREA YOU WOULD LIKE EVALUATED, LET ME KNOW.