Is Price Per Square Foot Good Enough To Calculate A Homes Value?

When buying a home, is it reasonable to determine a homes value based on the average square foot of the area? I have been asked this question a lot lately, and the answer is no. There are way too many factors that determines a homes real value. Such as:

• Location – The #1 factor in determining a homes value.
• Lot Size – A home with acreage is going to be more expensive.
• Condition – A luxury home is going to be more then an economy home.
• Upgrades – Granite counter tops, crown molding, hardwood floors?
• Updated – Does the home have 60’s shag carpet?
• Water Front – Does the home have an ocean view?
• Busy Streets – Freeways are bad for home values.
• How’s The Market – Seller’s market? Buyer’s market?