There are various ways agents arrive at a recommended listing price range for sellers. One check we will typically use is the Average Sales Price per Square Foot for the specific town (or even specific neighborhood within a town).
Here’s a chart of towns in the Hartford area and the Average Sales Price per Square Foot for the last two years…
A couple of thoughts about this data…
1. Keep in mind that smaller houses may have a much higher Sales Price per Square Foot than larger houses because of diminishing marginal utility.
2. The decrease between 2007 and 2008 represents the fact that people aren’t willing to pay the same type of premium that they were last year. This is just another measure, like Median Sales Price, that indicates which way a market is going.
3. Somewhat obvious but, as a Buyer, if you’re looking for a more reasonably priced town, try the towns in this chart with a lower Sales Price per Square Foot.