Using Price per SQ FT as a basis

james23ee1

Looking to offer on a house and trying to ascertain a good value to offer - comparing it to other houses in the area, similar size, location etc, both sold and for sale, they all average out at about £130 per sq ft - which is line line with other areas I have looked at.

The one we are interested in differs only in that it requires some modernisation yet this is up for £175 per sq ft - and this is after being reduced by 40k!

This gives us some alarm bells, so just looking for opinions.

martinsurrey

Can you link the rightmove?

Other factors such as plot size?

as long as the house is of a similar size (1bed, 3 bed), type (house/flat) and location (post code) £ per sq ft is a good indicator to a point.

Better_Days

How long has the property been on the market for? Also have you had a look at how the EA the property is up with prices generally? The 'reduced' tab in zoopla (if it is used in your area) can be useful as you may be able to see a pattern of EA(s) which value high to get the business, and then drop the AP when there is no or little interest.

Alternatively it may be the the vendor is unrealistic, or there is another factor - hard to say without knowing more about the property and area.

Yes and price per sq foot/meter can be a good way to compare properties.

claire111

Do you know the square foot because these are New Build?

If not - where are you getting the square footage from ..... Could this be the discrepancy ?

Surrey_EA

claire111 wrote: »

Do you know the square foot because these are New Build?

If not - where are you getting the square footage from ..... Could this be the discrepancy ?

All of our floor plans show square footage on them.

Always presumed this was quite common.

westv

The EPC will show the area in sq m.

PasturesNew

While £/sq ft is a small help in deciding between two properties you can't choose between, there's more to a value/price than just size.

A smaller house can be better laid out and give you the right mix/match/layout you were looking for, but be the same price as a house double the floorsize that's simply not ticking any boxes.

silvercar

The only place where I have seen price per square footage to be important is on new build investments in central London that are being marketed at foreign investors.

james23ee1

PasturesNew wrote: »

While £/sq ft is a small help in deciding between two properties you can't choose between, there's more to a value/price than just size.

A smaller house can be better laid out and give you the right mix/match/layout you were looking for, but be the same price as a house double the floorsize that's simply not ticking any boxes.

Yes I only use it in comparable houses; same area, same build date, quality, garden etc.

If there were a justification I'd accept it, such as one in disrepair and the other all spruced up, but I can't always see a reason and in those instances I am deterred.

james23ee1

Surrey_EA wrote: »

All of our floor plans show square footage on them.

Always presumed this was quite common.

Do you, as EAs, attach much importance to sq ft cost when pricing a property?

james23ee1

Better_Days wrote: »

How long has the property been on the market for? Also have you had a look at how the EA the property is up with prices generally? The 'reduced' tab in zoopla (if it is used in your area) can be useful as you may be able to see a pattern of EA(s) which value high to get the business, and then drop the AP when there is no or little interest.

Alternatively it may be the the vendor is unrealistic, or there is another factor - hard to say without knowing more about the property and area.

Yes and price per sq foot/meter can be a good way to compare properties.

Up for nearly a year, dropped down 45k. Offred 10% less and had it rejected.

The problem we have is that anything above our offer (especially their asking price) would mean per sq ft it would be one of the most expensive properties in the area; when really there is nothing about it that would justify that, apart from perhaps a slightly larger garden than some others, but this is at the expense of a rather smaller house.

The house also requires some modernisation, units and bathrooms are all early 1990s and looking tired, though usable.

The same style house in a more popular area nearby recently sold for 25k less than their asking, but the EA says "ah yes but that was 6 months ago" - well prices have dropped in the last 6 months so that really doesn't explain much.

It's frustrating knowing what to do.