What kind of data is typically used in the Square Footage Technique?

In the Square Footage Technique, the primary focus is on the price per square foot of comparable properties within the same market area. This method involves analyzing the sales prices of similar properties that have recently sold in order to establish an accurate valuation for the subject property. By determining the average price per square foot, real estate professionals can apply this figure to the total square footage of the property being evaluated, allowing for a straightforward and comparative assessment of market value.

Utilizing the price per square foot of similar properties is essential to ensure that the valuation reflects current market conditions, providing a more reliable estimate than simply considering total area, historical trends alone, or the owner's estimates. Each of those alternatives does not directly inform the current market value in the same way that leveraging prices of comparable properties does, which is fundamental to the Square Footage Technique. This method ensures that the valuation is aligned with what buyers are actually willing to pay for similar properties in that location, making it a practical and widely used approach in real estate appraisal.