Why Square Footage is Important Selling and Buying Crested Butte Home
Square Footage is one of the things that most sellers and buyers know is important. It is an easy way to see the size of a home for example. Usually, the higher the square footage the more valuable the home. However, the square footage of a mountain home can be misleading. This is due to the fact that there’s a difference between liveable square footage and actual square footage. There is also the price per square foot that many sellers and buyers consider. But how it this calculated and does it accurately reflect the value of the home? While square footage may seem fairly simple and straight forward at first it may be more complicated than you think. Here’s everything you need to know about square footage and what it means for you selling or buying your Crested Butte home.
Appraisal Calculation of Square Footage of a Home
An important part of any appraisal is that the appraiser calculates the square footage of the Crested Butte home. A finished basement can certainly affect value positively. But a finished basement or walkout basement will not be included in the appraiser’s calculation of livable square footage. This is because it is “below-grade” per Fannie Mae and ANSI guidelines. “Below-grade” means below ground level by one foot or more, even if three sides of the basement have exterior walls and only one side is below-grade. Your real estate agent will record the total living square footage of the home and this will be represented in the MLS. There will probably be a field specifically for below grade or basement finished square footage as well.
It should be noted that many homes are built on the side of a slope in mountain towns. Many of these homes have very nice basements that have bedrooms with egress windows, exterior doors, etc. An appraiser in a mountain town knows this and knows that many of the comps are similar. They will take this into consideration when appraising the home. Sometimes a lender will hire an appraiser from the big city. This can be problematic when they do not know the local mountain town market.
The Good and Bad About Square Foot Pricing
Square footage is a useful unit of measure for comparing many single-family homes. Using price per square foot is also useful if there are many similar homes to compare to. Condos and townhomes are a good example of when price per square foot works well.
Price per square foot can be a challenge when you are the seller of a very valuable piece of land with a small home on it. Then the price per square foot of the home will be out of sight, and it will not accurately represent the value of the entire property. It’s also a challenge when trying to compare two dissimilar homes.
Real estate is not black and white; in fact, much of it in Crested Butte lands somewhere in the gray area. As a seller this is where you will be looking to your real estate agent as an expert to understand your home and market those benefits to stand out in buyers’ minds. As a buyer you need your real estate agent to add some value to the discussion, and to provide some guidance.
Square Footage Disclosure for Sellers
As a seller, you will be required to sign a square footage disclosure. This document states the square footage of the home and the source for this measurement. The county assessor typically has this information, and it is one of the variables used to determine your property tax. If this number is accurate, then you will use it. You may have done some work on your home that increased the living area square footage which is not represented in the assessor’s number. If this is the case, you can hire an appraiser to measure your home, and this is an acceptable source. Like it or not, your home will be compared with other homes on a price per square foot basis, and the value of your home will increase if you can verify more square footage of living space.
Why Square Footage is Important Selling and Buying Crested Butte Home Final Thoughts
If you would like to know more about calculating square footage and how it affects your Crested Butte home contact me directly.
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Global Luxury Property Specialist
Coldwell Banker Bighorn Realty
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