23 Feb Does Your Home Measure Up in Price Per Sqft?
Whats in a square foot?
There are many things that create the value of your home. Some factors are recent upgrades, year built, style of home, and perhaps most importantly location. Yes the saying location, location, location is indeed true. These are things that are hard to quantify due to each buyer being willing to pay a different amount for each factor. One factor that is quantifiable is the price per square foot. The average price per square foot in the South of the River area for 2014 according to the Minneapolis Area Association of Realtors is as follows:
Prior Lake: $119 per sqft Lakeville: $117 per sqft
Eagan: $116 per sqft Savage: $115 per sqft
Apple Valley: $110 per sqft Rosemount: $108 per sqft
Farmington: $104 per sqft Burnsville: $102 per sqft
Factors that effect the value of a square foot.
Many components decide the average price per sqft. One element is the desirability of the city itself, including amenities like parks, shopping, daycares, and schools. A huge consideration is ease of commute. For example, Rosemount and Farmington are further away from main interstates making them less desirable to commuters.
Another contributing aspect is the age of the home. The sqft in older homes is less valuable than those in new construction. Since there are so many older homes in Burnsville and Farmington it brings the whole cities average price per sqft down. The opposite can be seen in Lakeville where there is a large amount of new construction.
The law of diminishing returns also effects sqft. I’ll spare you the technical definition but what this means is that at a certain point extra sqft lose some of their value. In the south metro specifically, the most valuable sqft are the first 2000. Sqft from 2000 to 4000 are still highly valuable but over 4000 puts you into a niche market place. The number of people looking for a house with 4000 and more sqft is significantly smaller that those looking for homes between 2000 and 4000 sqft. A good way to think about it is that the first 2000 sqft are your necessities. Above 2000 sqft we find amenities and luxuries such as the extra closet in the hall, extra space in the pantry, guest bedroom, and extra bathroom. These are all great things to have and luckily you will pay slightly less for them than your necessities!
Adding up the square feet in your home will only give you a very rough estimation of what your home is worth. I offer both a virtual and on-site home evaluation to give you a professional opinion of your homes value.
The Selling South of the River team is happy to answer any of your questions. Please call Sheryl at 612-889-6496 or Email at [email protected]