While on vacation in another part of Florida this past week, I found myself enjoying a meal when I couldn’t help but overhear a conversation at a nearby table. A couple was enthusiastically sharing how their agent-friend had given them a value estimate for their home, and I nearly choked on my food when I heard how it was calculated—solely based on the price per square foot!
I had to bite my tongue to stop myself from jumping into their discussion right then and there. Instead, I took it as a divine sign or maybe just a spark of inspiration for my next blog post.
When it comes to figuring out the value of a property, many
people turn to price per square foot (PPSF) as a quick and easy number to lean
on. While this figure might seem like a straightforward way to compare homes,
relying too much on this metric can lead you down the wrong path—especially in
a diverse and dynamic Miami-Dade area like Kendall, Florida.
Let’s break down why PPSF can be a tricky tool when you’re
looking at property values.
First off, PPSF doesn’t really capture the special touches
that make a home unique. Think about it: two homes might have the exact same
square footage, but if one has high-end finishes, a custom design, or even some
cool historical charm, its market value could be much higher than the other.
Unfortunately, PPSF doesn’t take these extras into account. So, if you’re just
looking at PPSF, you might miss out on understanding why one property is priced
the way it is.
Location is another big factor that PPSF tends to gloss
over. In Kendall, as in the rest of Miami-Dade, the desirability of a
neighborhood can vary a lot, even within just a few blocks. A home in a prime
spot in Kendall might have a higher PPSF, and for good reason—it’s in a great
location. But if you’re comparing it to another property with a similar square
footage in a less desirable area, you might think they’re comparable in value,
which isn’t necessarily true. The PPSF doesn’t really tell the whole story
about what makes one location better than another.
Then there’s the land itself. The size of the lot and the
quality of the land are major factors in a property’s value, but PPSF doesn’t
really consider that.
A larger lot with potential for development or a killer view
can significantly increase a property’s worth, but you wouldn’t know that if
you’re just looking at PPSF. This can be especially true in Kendall, where the
value of land can vary depending on how close you are to key spots like parks,
schools, or shopping centers.
The condition and age of a home are also biggies that PPSF
overlooks. Older homes might have a lower PPSF because they need some updating,
while newer homes might have a higher PPSF due to their modern features. But
just because the PPSF is higher or lower doesn’t mean you’re getting a better
deal—it’s just a number. For example, a freshly renovated property and one that
needs a lot of work might seem similar when you look at their PPSF, but the
actual value difference could be huge when you factor in what’s been done to
the home (or what still needs to be done).
Market conditions play a role, too. The real estate market
is always changing, and PPSF can fluctuate with it. If you’re only looking at
PPSF, you might not be aware of how current market trends are affecting
property values. In a hot market, PPSF might skyrocket, but that doesn’t
necessarily mean every property is worth that much—it could just be a
reflection of temporary market conditions.
It’s also worth noting that not all square footage is
created equal. For instance, a home in Kendall with a well-designed layout
might have a higher PPSF, but that could be more reflective of its practical
value rather than an indicator of overpricing. The way the space is used and
how it fits the needs of potential buyers can make a big difference.
Lastly, comparing different types of properties using PPSF
can be misleading. Condos often have a higher PPSF because of shared amenities,
security, and maintenance services, but that doesn’t mean they’re automatically
more valuable than a single-family home with its own land and privacy.
In
Kendall, where you can find a mix of condos, houses, and townhouses, this distinction is
important. You might find a condo with a high PPSF, but a nearby house with a
lower PPSF could offer more long-term value depending on your needs.
So, while price per square foot can give you a quick
snapshot, it’s really just a starting point. When you’re looking at properties
in Kendall, or anywhere else in Miami-Dade, it’s essential to dig a little deeper.
Consider the location, unique features, condition, and overall market trends to
get a true sense of a property’s value. By doing so, you’ll make smarter
decisions and avoid the pitfalls of relying too heavily on one number that
doesn’t tell the whole story.
Whether you’re thinking about buying or selling in Kendall,
we’re here to help guide you through the process. Reach out for expert advice tailored to your specific
needs—we’re just a call or click away!
About the Author: Liz Kenneally is a seasoned real estate agent in Miami with extensive experience in the city's dynamic market. Specializing in coveted neighborhoods such as Coral Gables, Dadeland, Continental Park, East Kendall, Palmetto Bay, Pinecrest, South Miami, and The Falls, Liz ensures smooth transactions for her diverse clientele. Fluent in both English and Spanish, she can be contacted at 786-423-3348 or through the EMAIL AGENT form provided alongside this blog.