If you're preparing to sell your home and researching the market, you may come across listings that highlight “best price per square foot in the neighborhood!” Naturally, you might wonder how this metric applies to your own property’s value.
Or perhaps you're a buyer searching for the perfect home along 30A, but you're struggling to understand why price per square foot varies so significantly across different communities.
This guide is for you.
Why do we focus so much on $/sqft? We all do it, but what might we be missing?
While price per square foot is a useful metric, it is not the ultimate determinant of a home's value. It does not account for critical factors such as location, finishes, furnishings, market conditions, and amenities. For example, smaller homes often command a higher price per square foot than larger homes.
Let’s start with this – Price Per Square Foot is ONLY the heated and cooled space of the home. What about that 3-car garage, the fabulous decks off each room, the extra-large lot with room to build a carriage house, the private pool and outdoor kitchen, or views of the Gulf?
Consider this scenario: A recently updated 2,350-square-foot WaterColor cottage SOLD for $3,200,000 ($1,360 per square foot). Meanwhile, a larger 3,845-square-foot home in the same community SOLD for $4,400,000 ($1,144 per square foot). If you only focus on price per foot, you might overlook why the smaller home appears to be at a premium.
This is where “price per home” becomes essential. Unlike price per square foot, price per home takes into account:
✅ Recent renovations and updates
✅ Private amenities, such as a pool
✅ Professional interior design and furnishings
✅ Proximity to community amenities and the beach
For Sellers, shifting your perspective to price per home can position your property for success—helping it stand out in the market and potentially securing a contract within the first week.
For Buyers, understanding price per home helps you prioritize what truly matters. For example, if having a first-floor primary suite and being steps from the community pool is important to you, the home may command a higher price per square foot. However, rather than focusing solely on that figure, consider the total price and adjust your search criteria accordingly.
Ultimately the true definition of market value is what Buyer and Seller agree too, right? To get there, you might consider another angle in addition to price per square foot!
We hope this insight has been helpful! If you’re considering buying or selling along the Emerald Coast, we’d love to connect. We have real-time market statistics readily available. Simply click the “contact us” button below, fill in your information, and we’ll be in touch. Cheers!
Written by Mollie Malouf and Kim Polakoff on March 21, 2025.
