Understand the Importance of Square Footage in Real Estate§
Square footage indicates the amount of livable space in a property. However, it does not always represent the total area of the building. Unfinished sections like basements or bonus rooms aren’t considered livable until they are complete with walls and flooring.
When evaluating a real estate listing, the given square footage represents only the livable area. Listings often include additional notes specifying unfinished areas.
Impact on Property Value§
Square footage directly influences the sale price of both residential and commercial properties. Although factors such as neighborhood, property condition, and amenities contribute to the price, generally, a property with larger livable space commands a higher price compared to similar properties with less livable space.
This significant measurement can guide both buyers and sellers in making informed decisions and understanding the market value.
Related Terms: Square Meters, Usable Area, Gross Living Area, Net Living Area.
