05 Oct What does cost per square foot have to do with the actual value of a house or investment property?
What does cost per square foot have to do with the actual value of a house or investment property?
The answer……..nothing! Square foot cost analysis is a marketing ploy created years ago by realtors to make “selling” easier.
Think about it. What does square foot cost tell you about the construction of the structure? Does it tell you that a home has 2 x 4 or 2 x 6 exterior wall construction? Is a high quality grade of lumber being used? What grade/quality of flooring and cabinetry is being used in a home that costs…..say $90 a square foot? You don’t know.
The only way to measure a structures value is to research the building specifications to determine the type and quality of materials being used in conjunction with the quality control of the building process.
Square foot cost analysis is simply a measuring tool to sell. Pine Ridge could say we cost less per square foot, or more per square foot, to build in a factory than building on site and both statements would be true.
Every project has individual characteristics that determine the price to build. Pine Ridge uses 2 x 6 exterior wall construction in every home. Our factories use only the highest grades of lumber. We build indoors in a controlled environment with rigorous inspection processes.