I touched on price per square foot in earlier blog posts. Just as a reminder, WE DO NOT CARE ABOUT PRICE PER SQUARE FOOT IN CHICAGO! I can not tell you how many times I have had this conversation with people. Look, I get it, we are in an over-informed environment. We have so much information in our pockets I understand how it can all become overwhelming and confusing. Let me take the confusion out of it. Chicago is the ONLY major housing market in the whole world that does not base its prices on price per square foot.
If you have watched enough Bravo Million Dollar Listing shows you have heard price per square foot used quite often. In cities like New York and Los Angeles price per square foot is used to determine to price and used in comparing comparable properties. The difference with Chicago is that there are 77 different neighborhood. Read that again..77!!! It impossible to do price per square foot for each of these. Not to mention, people tend to measure square footage differently as well. Some people include balconies (which you are not supposed to), some include an area that if 50% or more below ground (again not supposed to), and some people just guestimate the heck out of the space. This is why it is common to see a "0" on the area on the MLS where it says "square foot."
How do we price properties then?
We base our price just on what similar properties sell for and not the price per square foot they sold at.
When is price per squre foot used?
The few times we do use price per square foot is in new construction and in high-end luxury buildings like the Ritz-Carlton, Waldorf Astoria, or the Aqua tower.
Otherwise, dont worry about the price per square foot. It'll save you the headaches of trying to do the calculations anyways.