Determining Florida Home Value Using Price Per SqFt
Why Price per Square Foot Isn’t the Best way to Value a Home
As a professional who works full-time in the industry, I often come across the “price per square foot” discussion. Many consumers believe this is how home prices are determined, but that’s simply not how market value is established. Price per square foot can work in certain markets where homes are nearly identical in every way—such as condos in New York City—but it doesn’t work well in Florida. It’s an oversimplification of the valuation process and is often inaccurate.
Not All Square Footage Is Equal
Two homes might have the same size, but very different layouts. An open-concept floor plan can feel much larger than a choppy design. And not all square footage is created equal — finished, heated living space carries far more value than a garage or enclosed porch.
Quality and Upgrades Matter
A kitchen with custom cabinets & quartz counters, or hurricane-impact windows, or a tile roof can dramatically affect a home’s value. Price per square foot doesn’t reflect upgrades, quality of construction, or overall condition. Remember, different builders even in the same neighborhood have different levels of quality with the products they use to construct the home. Its like comparing a Prada bag to one you find in an outlet mall. They may both be equal in size, shape, color and design. but the quality is NOT the same and neither is the price.
Land and Location Add Value
Waterfront views, corner lots, and quiet cul-de-sacs all add value that price per square foot ignores. Two homes on the same street can have completely different desirability (and value) depending on their location and lot features. When you buy new construction you WILL pay a “Lot Premium”, depending on the desirability of lot — this is the same in a re-sale home.
Different Designs, Different Costs
Single-story homes often cost more per square foot to build than two-story homes because they require a larger foundation, lot size, and roof. Homes with pools, high ceilings, or luxury finishes will naturally show a higher $/sq ft — but that doesn’t make them overpriced.
What Really Counts
Appraisers and real estate professionals look at the whole picture: comparable sales, age, condition, design, and lot value. Price per square foot can be a starting point, but it should never be the only factor. We have rules and metrics that we follow.
Market Value
A home’s true value depends on far more than size. When you’re buying or selling, rely on a comparative market analysis (CMA) from a qualified professional who has experience and an understanding the data. Remember, Market Value is the most probable price a property would sell for in a competitive and open market, under normal conditions.
