Why Price Per Foot
14:49:38
WHY PRICE PER FOOT?
To give you a little perspective on this subject, let’s compare Terravita to the town of Paradise Valley. Two pretty different communities, but I think they will illustrate the point.
Homes in Paradise Valley range from: custom homes to production homes, in age from 60 years old to brand new, are located on anywhere from one to 10 acres, and they have been built by thousands of different builders, to thousands of different levels of specifications.
Now contrast that to Terravita homes which were all built by the same builder over just a four year span, on about the same size lots, in pretty much the same way, with pretty much the same specs.
Clearly I think price per foot is a poor device to use comparing homes in PV due to the community’s disparate nature, but a reasonable one in Terravita due to its relative lack of disparity. But this is still just a yardstick, or a rule of thumb. Wikipedia loosely defines Rule of Thumb as:
‘an easily learned and easily applied procedure for approximating or calculating a value for making comparisons.'
I use Price Per Foot as a convenient tool to help me easily communicate with my readers, and as one of the factors in determining value for my clients. The larger portion of my analysis comes from having sold almost 500 homes in the community and knowing how to value the variables such as upgrades, location, and most recently updatedness and outdoor living.
