What does price-per-square foot (PPSF) tell us?
The real estate world and consumers often focus too much on this PPSF number. Not all square feet are created equal and it's important to factor in the QUALITY of those square feet. Instead of focusing on just PPSF, consider the entire picture.
When searching for a home, widen your PPSF parameters so you don't miss out on potentially the perfect home simply due to one data point. Striking that perfect balance between PPSF and scale is key. Regardless of the square feet, it's really the final purchase price that matters most, and how that relates to comparable properties nearby. Just because the PPSF looks like a bargain, does not mean you are buying a bargain. Applying a high PPSF of a super-efficiently-scaled property to another property's not-so-efficiently-scaled space does not make sense.
It also depends on your perspective and your personal needs. Is extra square footage "wasted space" or is it "breathing room?" PPSF needs to be evaluated case-by-case with clear specifics.
In the end: consider quality-per-square-foot for intelligent pricing & valuation!
