by Phil Hoover, Real Estate Broker

Is Price Per Square Foot A Good Yardstick?

Price per square foot is a popular metric when comparing home prices, but there are other factors to consider, including:

Design

A two-story home usually costs less to build than a similar-quality single-story home because a two-story home will have smaller foundation and roof areas.

Similarly, basement square footage costs less to build than above-ground square footage.

Thus, the price per square foot of a two-story home, or a home with a basement, will usually be lower than the price per square foot of a single-story home.

Yet another example is roof design.

A 9-in-12 (steep) pitch hip roof costs substantially more to build than a 6-in-12 (shallower) pitch gabled roof.

And, homes with complex designs will cost more to build than plain, boxy designs.

Size

Smaller homes generally have a higher price per square foot because there’s less square footage over which to apportion the major costs of foundation, roof, HVAC system, appliances, and other items.

That means that a 4,000 square foot home (think big box) will carry a lower price per square foot than a 2,000 square foot home if everything else is equal (quality, lot value, materials, amenities, etc.).

Lot Value

The value of the lot can significantly affect the price per square foot of a home.

For example, building a small home on an expensive lot will result in a high price per square foot.

Conversely, building a large home with a simple design and few amenities on an inexpensive lot will result in a low price per square foot.

Amenities

Slab granite counters, Viking commercial-quality kitchen appliances, Travertine walk-in showers, and Brazilian Chestnut hardwood floors all cost more than laminate counters, Magic Chef appliances, fiberglass tub/showers with plastic shower curtains, and linoleum floors.

The bottom line?

What’s in the square feet is often more important than the price per square foot.

 

June 1st, 2012 Posted in Inside Real Estate | Print This Post Print This Post | No Comments »

Meridian’s New Senior Center Now Open

Meridian’s new 13,800 square foot senior center has opened in the beautiful new Julius M. Kleiner Memorial Park.

The new facility features areas for exercise, arts and crafts, pool tables, cards and games, a library, and will soon add computers.

The new center also plans to have health screenings, bingo nights, and exercise classes.

The cost to join?

Just $5 a year!

 

May 31st, 2012 Posted in About Meridian, ID | Print This Post Print This Post | No Comments »

New Fred Meyer Superstore Nears Completion

The new Fred Meyer Superstore in Eagle Island Marketplace at Chinden Boulevard and Linder Road is nearing completion.

Interior finish work is underway, signage has been installed, and landscaping is  nearly done.

Next up is stocking the store and preparing for the Grand Opening on June 22nd.

This beautiful new store will be a huge plus for everyone living in Northwest Meridian and Eagle!

 

May 30th, 2012 Posted in About Eagle, ID | Print This Post Print This Post | No Comments »

Boise Real Estate Appraisal Challenges

Let’s assume that you’re a buyer in the Boise real estate market these days.

In the past two weeks, you’ve seen 34 homes; eight of them sold before you could write an offer.

You made full-price offers on five homes, competing with multiple offers on each, only to learn that you lost out because all of them sold above the asking price.

You’re frustrated, exhausted, and about to give up, but you finally find the perfect home and offer $10,000 more than the asking price.

Your offer is accepted and now the fun starts.

Why?

Because the home must appraise at the sales price in order for you to get your loan.

The appraiser is required to follow strict guidelines to ensure that your lender doesn’t loan more than the corresponding loan-to-value percentage.

The appraiser’s job is to ensure that the value is adequate for the lender; not to rubber-stamp the price the buyer and seller have agreed upon.

When a property fails to appraise for the sales price, the seller can adjust down to the appraised value or the buyer can come up with the difference in cash at closing.

I don’t see many buyers these days who are willing to cough up the cash difference when a property doesn’t appraise.

If buyer and seller fail to resolve the difference, the deal will fall through.

That means both buyer and seller get to start all over again, which is no fun for anyone involved, including the listing agent and buyer’s agent.

We currently have 1,272 pending sales in Ada County, many of which sold above the asking price.

It will be fascinating to see how the appraisals work out on those transactions.

I don’t envy appraisers in markets like this one.

 

May 29th, 2012 Posted in Inside Real Estate | Print This Post Print This Post | 2 Comments »

Freedom Isn’t Free!

Thanks to all who have served to keep us free!

 

May 28th, 2012 Posted in About Our Area | Print This Post Print This Post | No Comments »
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