The Significance Of Square Footage In A Home Purchase
Posted on: 27 December 2019
There are so many factors to consider when buying a house that it is easy to forget about one or two of them. For example, did you know that you should also consider the square footage of a house during purchase? Here are some of the reasons the square footage is important.
Purchase Price Estimation
Homes are not exactly priced by their square footage, but there are usually pricing trends that reflect the average prices per square footage. Thus, the square footage of a home can help you figure out, roughly, whether it is appropriately priced or not.
Mortgage Requirements
If you are buying the house on mortgage, rest assured that the lender will also be interested in the square footage. The lender will want to confirm that the house is worth as much as the seller is asking for it. After all, the lender is also investing in the property, and they want to protect their investment.
Resale Value Assessment
You might not care for the square footage of the property, but the next owner of the property might care for it. Thus, you need to know the square footage if there is even a small chance that you might resell the house later on. Note that different neighborhoods are known for different home sizes. Buying a house whose square footage is very different from the neighborhood trend might result in resale difficulties.
Renovation Requirements
Many people don't get their dream houses; they buy homes that approach their dream demands and then renovate the properties to their liking. If you are thinking of taking such a route, then you should know that the square footage will affect your renovation plans. The square footage (an indication of the property size) may affect the size of the additions you are allowed to make, the sizing of a septic system, and even the renovation permits.
Tax Assessment
Lastly, you should also know the square footage for the sake of your property tax estimations. This is because property taxes depend on the value of a property, and the square footage (of the usable or living area) is one of the determinants of a property's value. For example, a three-bedroom house with a finished attic might attract a higher property tax than a similar house with an unfinished attic.
Note that the square footage determination should only include the usable areas. Engage a real estate agent to ensure the calculation is accurately done.
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