Is price square foot a good way measure property value?
We're house hunting: Should we go for the property that offers the best price per square foot or is there a better way to measure value?
This is a common question asked by a lot of first time buyers.
Our CEO Carl Howard shares his insight.
'While wistful house hunters - and some estate agents - might try to convince you otherwise, a dream home is extremely rare.
Far more common are properties that appeal to your heart and head in different ways. For many first-time buyers, practicality can be a big draw, with the low maintenance 'just move in' quality offered by new builds proving popular. However others are happy to identify a property with potential, and your reference to hard work suggests you're not afraid of a project. My advice to any buyer is to create a shortlist of items that are most important to them. This can range from the old reliables like location, property age and number of bedrooms, to the local amenities and that desirable south-facing garden.
If you are considering several properties, use the list to help you pick which property is the most practical option. Once that's done, it's time to decide if you are ruled by your heart or your head. Whether you're a romantic or a pragmatist it's always worth considering how long you will be in the property, how sellable it could be in the future, and, if you are considering starting a family, what the local schools are like.
Pricing by square foot can be a useful tool when it comes to new builds, establishing their value within the market. However for older properties with a history it can end up being too rigid when external factors, from the desirability of the road to the quality of local schools, have a much greater bearing on sales.'
