
Someone Asking About Price Per Square Foot? Use This Coffee Analogy
Someone Asking About Price Per Square Foot? Use This Coffee Analogy
If a client is fixated on price per square foot, it’s time to break out the coffee analogy. Think about ordering coffee at Starbucks. A tiny espresso costs way more per ounce than a venti latte—but does that mean the espresso is a bad deal? Nope, it’s just priced differently because of its size.
Real estate works the same way. Smaller homes typically have a higher price per square foot, while larger homes tend to have a lower one. Using price per square foot (from different sized homes especially) is setting the listing up for a major pricing mistake.
🏡 Why Price Per Sq Ft Alone Doesn’t Work:
✅ It doesn’t account for home size differences
✅ It ignores upgrades, condition, and layout
✅ It doesn’t factor in location or lot size
The appraiser's goal is to find homes where they have to make as few adjustments as possible! Instead of relying on one simple number, focus on comparable sales—homes that match in size, features, and condition. This is super important!
So, next time someone is stuck on price per square foot, remind them: It’s like comparing the price of a shot of espresso to a venti latte—it just doesn’t work!
Smart Move: Strategic pricing conversations build seller confidence and lead to better results.