Price vs. Value. Price is what is paid at a certain time. Value is how much something is worth to a certain person. Value can differ to different people, whereas price is indeed a fact, and captures a certain moment in the history of a property. That is why HPM (House Price Multiplier) analyzes Sales Price for a given SFR. Evaluating SFRs by $/sq ft of living space is inaccurate. Most of the value HERE, is in the LAND. Otherwise, we would have prices like Kansas. The HOUSES in Kansas, are generally better constructed, than here.
I’ll take a big lot and small house any day, over a big house on a small lot in the same area. Often times, bigger houses are one persons’ dream and the next owners’ nightmare, as resale is not usually considered, when doing an addition.
