The Paradox of Price Per Square Foot Value

Price-per-square-foot is widely used as a basis for estimating value, and it is also one riddled with problems. It can be strongly argued that price per square foot has no value in ascertaining value at all. Many variables inherent in deriving price per square foot are insignificant and that renders conclusions based upon them all but worthless. There are of course exceptions; new tract construction, tract condominiums and on occasion newer commercial properties. This article considers existing homes as it is frequently applied broadly and quite inaccurately.

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