I don’t know about you, but I keep running into agents who entice their Sellers into listing with them by applying Price Per Square Foot to those Sellers’ homes. They make this situation worse by adding additional amounts for condition, recent upgrades, etc. For heaven’s sake, Agents, get a clue. Appraisers do not use this method, preferring to use a comparable sales metric instead. At first blush, I thought part of this might be related to the land value. After all, a 1,500 sf house on .20 acre parcel might not be comparable to a 1,500 sf house on .5 or even 1 acre. Determining the land value is not easy to determine. In our county, the Assessor is at least 2 years behind in calculating that value, using only a percentage formula, even if intervening sales of even the same property does not increase the value of the land beyond that pre-determined percentage. Again, the appraisers don’t use that method. When I bought my brand new home in 2005, the 2,517 sf model was $186.17, the 3,020 sf model was $168.86, the 3,482 sf model was $157.94 and the 4,308 sf model was $139.26. So, if the identical builder, on an identical lot (which may or may not have had a lot premium), can have such disparate prices per square foot, how can one use the blunt instrument of Price Per Square Foot to compare a 996 sf house with a 1,308 sf house in the same subdivision? Number of bedrooms and baths, all things being equal cost the same in the smaller house as in the larger house. I almost lost a sale, because the listing agent used Price Per Square Foot on a smaller manufactured home to determine the value of a significantly larger manufactured home. There were no comparable sale prices that high. The Buyer offered the full listing price. The Appraiser demurred. We worked it out, but there was unnecessary disappointment on both sides, and lots of anxiety for all the participants. Please don’t fall for that trap. Use the Sales Comparison Method, or go to Real Property Resource and use the Realtor Valuation Model. If there are extenuating circumstances, you can fall between the range (either higher or lower). Let’s make sure we demonstrate our professionalism and provide our Sellers (and Buyers) with the right value to apply to their home.