Size Matters!
It think it's safe to say that the market in Cleveland is still challenging. For me, the start to the year was slow but now I can't find enough hours in the day to show all the homes that people want to see and keep up with the day to day activities of marketing my listings and keeping close tabs on my closings. But it is still a challenge to just close the sales on paper. And this is where pricing remains critical.
A couple of weeks ago, I wrote 2 offers, neither of which I was able to close, both for the same reason. The average price per square foot in this community is about $100-$110 per square foot. One particular seller was asking $150 per foot. Admittedly there were some very nice updates...remodeled kitchen, updated bath, new roof and windows, all of which play an important role in the overall pricing. But in the end, the house is still a 3 bedroom home with 1.5 baths on the main floor.
My buyers wrote what I thought was a reasonable offer but the seller would not even counter. It's important to note that a home cannot be priced merely on square footage, but it is a consideration for buyers and should be a consideration it you are selling your home.
Although on a much bigger scale, it's kind of like buying a car...if it does not have the "leg room" the buyer needs, they will be unlikely to buy it and much less likely if it's not priced accurately and competitively.
If you are going to be listing your home for sale, it's important to take everything into account:
the competition
the closed sales
your improvements (or lack thereof) and how significant they may or may not be to a potential buyer
market time
square footage
negative impacts (nearby gas/oil wells, high tension lines, freeway noise)
But size does matter!
If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate. Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.
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You are right in that size and therefore space matter but the use of the space matters too. Huge foyers and landings with tiny room result in less usable space. This in my opinion and that of those buyers I have worked with lowers the desirability and thus the value of the home.
It's interesting to hear about price/sq.ft. issues - in our market in Colorado, it usually only comes into play with out-of-state buyers who are used to it in their previous market.
It's not that we totally ignore it, but it isn't usually a significant criterion itself, unless it comes in handy in making an offer. And it is certainly present in how we look at all of the things that reflect it.
It's probably because our local market is made up of a half-dozen or so very distinct segments, between which price/sq.ft. varies so widely.
Most definitely size matters and even though homes aren't priced solely by square footage, that does come into play. No matter how many upgrades one might have the homes needs to be priced in line with the comps! Great price
Interesting post - you are right, size is important, but quality and condition are important in our market too.
Size does matter, but what is contain within is also important in my marketplace.
Michele, Totally agree. Once in a while though you get a seller who thinks that because there are new windows and a roof, it makes up for the house being on the small side and that just isn't true.
I'm finding buyers aren't always impressed with the sellers' choices of upgrades, too. So, while sellers expect more for what they have done to update/upgrade their properties - and in some cases, it's justified - if they didn't make the right choices, the buyers aren't going to pay a premium per s.f. for them.