Buy Alexandria Real Estate: $3 Million Dollar House Cheaper than a Studio Condo? Absurdity of Price per Square Foot

Alexandria Virginia Real Estate Blog

$3 Million Dollar House Cheaper than a Studio Condo? Absurdity of Price per Square Foot

Does size matter?

Does Size Matter?Pull out your rulers, your tape measures, your sonic measurement devices and start doing some calculations.

When buying a home (or pricing your home for sale), the #1 criteria, as most everyone knows, is LOCATION.  There's no dispute about that.  What's next?  How about size, condition, age, and amenities.

How much does size really matter?

Here's an example taken to the extreme:

There are two homes currently on the market in Old Town Alexandria -- one is a $3 million plus home with over 8,882 square feet of finished living space; the other, a studio condo priced at $209,000 and offering a mere 380 square feet (can you actually fit a bed? and a dresser?)

Do the Math!

 

Let's do the math!

HOME #1:  $3,195,000 divided by 8,882 square feet =

$359/square foot

 

HOME #2: $209,000 divided by 380 square feet =

$550/square foot

 

Surprise the studio condo space is much more expensive!

 

 

 

Of course this is an absurd example, but it just goes to show that square footage is not always an accurate measurement when it comes to value unless all other criteria about the properties are similar.

For instance, the least expensive home on the market in Alexandria is priced at $105,000 and measures 1005 square feet.  The most expensive home is 32 X more expensive at $3,350,000, but it certainly is not 32 times larger, offering just 5000 square feet.

I'd love to help you find a home in Northern Virginia whether you can survive in 380 square feet, or you want a little more room to stretch your legs.

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Comment balloon 14 commentsBrian Block • June 13 2008 04:25PM

Comments

$550 per sq ft?  that is kind of expensive...besides..who would want to live in a 380 sq ft home??  that would make me claustrophobic and not want to ever go home.

Posted by n d (Naoma Doriguzzi) almost 10 years ago

Brian, Wouldn't folks know that the properties have to be similar before price per sq ft can be used as a pricing tool? It's sooooooo simple. But alas folks don't know and that's why the need someone that does. You for example!!! Can you believe we have homes in my market as low as $50 per sq ft? We work and live in different worlds.

Posted by Bryant Tutas, Selling Florida one home at a time (Tutas Towne Realty, Inc and Garden Views Realty, LLC) almost 10 years ago

Cost per square foot can be deceiving but it is fun to compare the market for interesting comparisons.

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) almost 10 years ago

NAOMA:  $550/sq. foot is definitely expensive but not the highest by far.  Yes, I couldn't imagine living in a 380 sq. ft. home, though my freshman year college dorm room was under 200 sq. feet, but didn't include the bathroom, kitchen, etc.

Posted by Brian Block, Northern Virginia & D.C. Real Estate (RE/MAX Allegiance, Managing Broker/Branch Vice President) almost 10 years ago

BRYANT:  Thanks for your comment.  It is a basic requirement that you have to compare apples to apples and oranges to oranges.  $50 per sq ft. is amazingly low!

Posted by Brian Block, Northern Virginia & D.C. Real Estate (RE/MAX Allegiance, Managing Broker/Branch Vice President) almost 10 years ago

TERRY:  Thanks for stopping by and commenting.

Posted by Brian Block, Northern Virginia & D.C. Real Estate (RE/MAX Allegiance, Managing Broker/Branch Vice President) almost 10 years ago

This would be just the fun kind of exercise I can see myself doing some night when I'm too tired to blog or do anything constructive.  Thanks for the idea!

Posted by Margaret Woda, Maryland Real Estate & Military Relocation (Long & Foster Real Estate, Inc.) almost 10 years ago

MARGARET:  I look forward to seeing your report.

Posted by Brian Block, Northern Virginia & D.C. Real Estate (RE/MAX Allegiance, Managing Broker/Branch Vice President) almost 10 years ago

amazing...............the little things we don't normally think about.....

Posted by Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional, Palm Harbor, Dunedin, Clearwater, Safety Harbor (Charles Rutenberg Realty) almost 10 years ago

ditto....amazing, but i want to see your report too....

Posted by Jack Climer (Jack Climer Realty, LLC) almost 10 years ago

BARBARA JO:  Thanks for your comment.

 

Posted by Brian Block, Northern Virginia & D.C. Real Estate (RE/MAX Allegiance, Managing Broker/Branch Vice President) almost 10 years ago

JACK:  I appreciate you stopping by.

Posted by Brian Block, Northern Virginia & D.C. Real Estate (RE/MAX Allegiance, Managing Broker/Branch Vice President) almost 10 years ago

Wow, I can not imagine living in 380sq. ft., my bedroom is about that size!! I certainly couldn't LIVE there!

Posted by Mike Slager - Holland, MI Realtor (Greenridge Realty) almost 10 years ago

MIKE:  Me neither!

Posted by Brian Block, Northern Virginia & D.C. Real Estate (RE/MAX Allegiance, Managing Broker/Branch Vice President) almost 10 years ago

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