price per foot is never a good way to determine value

Price per square foot seems like a logical way to figure out value of a home right? WRONG!

Guilty!  Buyers, sellers, Realtors … all guilty!  All are at fault for using price per square foot (psf) when attempting to come up with the price of a home.

It’s pretty easy if you think about it.  Even I can do the math (with a calculator): divide the price of home by the air conditioned square footage of the home and come up with price per square foot.  Once you have that amount per foot it should be an easy way to figure out prices for other homes in area too right? Wrong!

“The last time I checked, price per square foot was not something they were teaching in Principles of Real Estate or Valuation of Homes,” explains Robert Totten, Fort Worth real estate appraiser.  “I have been an appraiser for over 35 years and never has using price per square foot been a way to come up with a value for a home.  There is no class called Pricing a Home with Price Per Foot.”

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In the words of Allie Beth Allman agent dynamo Karen Luter, this is not just the deal of the century, but a STEAL:

“Yep, $2,999,999. That puts it at the bottom of price per square foot, $247 to be precise for this iconic home, rich in history.”

The home was listed at $3,300,000. You get oh so much: 12,000 square feet. Built in 1984, but remodeled in 2000. Located in coveted Old Preston Hollow, on over one acre of manicured lawns with fountains, pools, koi ponds, arboretum like gardens, there is Brazilian teakwood flooring, grand sweeping staircases (two or three), statues, arcades of Corinthian columns, wine cellar, walls of beveled glass windows, hand painted murals, original pink quartz-marble hardware, indescribe-able mill work and a pink quartz toilet. Er, commode. I think that lime green carpet on the stairs is the original that hosted many a top producer party. The kitchen has the original white Corian counters and I believe that may even be Mary Kay’s own breakfast table under the massive chandelier. The current owner’s furniture tastes are a bit more “antique” — when I first saw the home years ago, right after Mary Kay had moved out, it held no oriental rugs. Formerly listed with Myla Patton of Patton International Real Estate for $5.7 in 2007, then listed with Linda Jordan Hobbs over at Ebby for $4,995,000, which is about what DCAD thinks give or take $400K. Myla was again considered for the listing.

You know, A-Rod drives up Douglas every time he visits Dallas just to take a gander at the home he owned, which is right next door. Someone should buy this home because it is a vital part of Dallas history. And it’s right next to A-Rod.

No, I take that back: HERSTORY! Why doesn’t Mary Kay Cosmetics buy it and do what the folks at the M Mansion do — use the house for special events, like pink Cadillac parties and weddings? It is really such a treasure.

TMZ is reporting that Terrell Owens took a bath on his Azure condo:

According to public documents, Owens paid $340,000 for the 2,600 square foot place back in 2006, right after he signed a $25 million contract with the Cowboys.

Owens no longer works in Dallas … and probably won’t ever work in Dallas again … so he put the place up for sale.”

I think they are wrong. Here’s the real story. Owens owns not one but TWO (2) units at The Azure, as I told you way back. He also owns a 2297 square foot townhome at the East Side Lofts on 1st Street. The smaller Azure unit on McKinnon, #307, is on the market for $279,000, price lowered from $325,000. The price per square foot is just over $300. This is a smaller, one bedroom unit at 881 square feet and while he may have paid $340,000 for that one, he bought both props in 2008. Yeah, pre-bust. But the condo he is probably most anxious to shed, and the ONE THAT IS SALES PENDING, is the big mama on the 20th floor that he had listed for $2,250,000 that is 3559 square feet with 6 garage spaces  This 3 BR, 4.5 Bath custom residence on the 20th floor comes with all those garages plus two storage spaces. There are three outdoor terraces with gas fireplaces, downtown views of the Dallas skyline, 10 ft ceilings, a loaded kitchen with built-in SubZero fridge, Miele gas cooktop and double ovens, etc. The Master suite features his-her separate bath and closets, plus a sitting area and private outdoor terrace with gas fireplace. Best of all, the place has not been lived in much. This pad has been reduced to Holy Schnickers $1,600,000, and at that price, brings the price per square foot at The Azure for this essentially Ferrari property down to $449.56. And that’s if they got asking! 

But TMZ is right about one thing: If TO paid anywhere near $2 million for unit 2008 whenever, he is most certainly taking a bath. Not a $56,000 bath but more like a tsunami –close to a million going bye-bye…