Does Square Footage Really Matter? What Every Homebuyer and Seller Should Know

1. Pricing and Appraisal Value

Square footage significantly impacts a property’s market value. Appraisers compare a home’s size to similar recently sold properties (comps) to determine a credible value. In general, larger homes tend to be worth more—but only when that extra space is functional and well-integrated.

Relying on price per square foot only to price a home can be misleading. It is important to understand how price per square foot works-and why it should be used in context with other key factors, not as a standalone metric.

Lot size and external influences can also significantly affect price per square foot. Two homes with identical square footage may have different values if one sits on a larger, more private lot or has superior landscaping, while the other backs up to a busy road or commercial property. Other external factors—such as school district, neighborhood appeal, proximity to amenities, or zoning—can all influence value, even if the homes themselves are nearly identical in size. These variables often are not reflected in a basic price per square foot calculation, which is why professional appraisals take the full picture into account.

2. Understanding Price Per Square Foot

by its total square footage.

Example: A 2,000 sq ft home that sells for $800,000 has a price per square foot of $400.

While this number can help with general comparisons, it is not a complete measure of value.
Price per square foot does not account for:

• The home’s condition
• Amenities like an in-ground pool, garage, basement, deck, patio, porches, and landscaping
• And most importantly, location

A smaller, fully renovated home in a desirable neighborhood might have a much higher price per square foot than a larger, outdated home in a less competitive area. That is why professional appraisers never rely on this figure alone.

3. Functionality Over Footprint

Not all square footage is created equal. A smart layout and modern finishes often add more value than a extra hundred square feet of awkward or unused space. Today’s buyers prioritize usable living space, not just square footage on paper.

4. Appraisal Accuracy Matters

Online listings often include square footage estimates that are inaccurate or outdated. A certified appraiser uses standardized methods—such as ANSI measurement guidelines—to ensure precise calculations. This is especially important in divorce, estate, or pre-listing appraisals, where accuracy is essential.

5. Smaller Homes, Higher Price Per Sq Ft

It often costs more per square foot to build smaller homes, which means they tend to sell at a higher price per square foot than larger ones. For example, a remodeled 1,200 sq ft home might sell at $250 per sq ft, while a 3,000 sq ft home might be closer to $150 per sq ft. This is why using price per square foot from a smaller sale to value a larger home can lead to overestimation.

The Takeaway

Yes—square footage and price per square foot matter in real estate. But they are just part of a much bigger picture that includes condition, amenities, layout, and most importantly, location. For the most accurate valuation, always compare with recent, comparable sales—and better yet, hire a licensed real estate appraiser.

Need a Square Footage-Based Appraisal?

At DMA Appraisers, we deliver detailed and accurate home appraisals throughout Nassau County and surrounding areas. Whether you need an estate appraisal, divorce appraisal, or pre-listing valuation, we are here to help you understand the true value of your home.