December 19, 2008

The Square Foot Equation=Value

Posted to Geneva Lake Area , Geneva National, Theresa Larsen

I am a The Today Show morning person and while tuning in this week Barbara Corcoran ‘real estate guru’ was one of Matt’s interviews. At times, I have had a hard time with Barbara because she paints with a very broad brush and the Midwest gets caught in the sweep of her all inclusive statements. Real estate is local! But while chatting about the market and that ‘it is the absolute time to buy’ (YIPPEE) part of her recommendation was to determine the price per square foot. Price per square foot is a good factor when comparing properties and it becomes even more important when determining if you are deciding to purchase now or build. With that in mind let’s take a at two properties on the market in Geneva National and their square foot cost.

In my last blog I mentioned four home sites that ranged from $130,000 to $270,000. The average list price of those four is $202,000. 1851 Prestwick, Lake Geneva, WI is currently on the market for $550,000 and it is located on a beautiful wooded site that slopes down to the Palmer 7. Hosta's and trees are a natural barrier to the golf course and allow for birds, deer and shaded privacy. This walk-out ranch has over 3600 square feet of living space. If you subtract the previously determined $202,000 for the land the house has a value of $348,000 with a square foot cost of $96.67 a square foot. $96.00 dollars... that is not only an amazing value but for that price you can easily afford to rip out the carpeting and put in wood flooring. One more note - the land next door sold for $180,000 and it is a smaller parcel. Using that figure for the land, 1851 Prestwick still comes out to $102.77 a square foot. This home has been updated and you just can’t find a more beautiful piece of land with the Prestwick address.

One more example is 121 Palmer, Lake Geneva, WI, listed for $549,000. This is new construction with finished in-place wood floors, Jenn-Aire stainless steel appliances, Andersen windows, Schlage and Kohler fixtures, tray ceilings, two first floor suites, fully finished walk-out lower level with third bedroom suite, kitchen and family room. All set and waiting for you! Square foot cost? $152 per square foot without the land cost!!! Add in the land cost and we are down under $100. You cannot build this type of home for that price. One year paid association dues and other incentives are available on this home and it includes all of the features mentioned plus more. Another great value and the last one available. We can’t build this one again and all features are standards within this home and others by The Choyce Group.

Posted By: Margaret Canfield

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