Price per sq/ft is good...sometimes.

Q: What do Paradise Valley, Rio Verde and Eloy have in common?

A: Not much, except for a 13% plus year-over-year increase in average Price per Square Foot ($/sq ft)!

Year-over-year Annual $/SF by 41 Valley cities: 

Historically, we see increases in Annual $/Sq Ft correlate more with price range - the lower price range cities, where so much of the competition is, rising more quickly. So the above chart is interesting in not following suit.

What's 'annoying' about $/sq ft generally is how frequently it's referenced, while being a very 'broad brush' in property evaluations - not parsing important distinctions in variables like, condition, age, style and location. This, of course, explains why AVM's (automated valuation models like Zillow) so often miss the mark, to the extent they put too much weight on $/Sq Ft.

Yet, $/Sq Ft is an important benchmark. For example, properties can be 'over-improved', taking them far above the justifiable average $/Sq Ft for that market segment.

RLSIR proprietary tool: Our Collateral Analytics account can give you a 'bank grade' AVM - a great differentiator for you and counter to the Zillow Zestimate you're confronted with online.

My advice: When you as a seller pulls out their Zillow Zestimate, rather than get on the defensive (since Zestimate tends to too high, setting a false expectation), a great strategy (and forgive me if you've heard this before - it's such a great strategy I bring it up often) is to say 'congratulations on doing your homework...you're using a consumer-grade tool, known to have accuracy issues. I have a 'bank-grade' tool that I'd love to share with you.' And that being said, always remember that no AVM can trump the street-level knowledge derived from a carefully crafted CMA. 

The power in a 'bank-grade' AVM is that when it agrees with your CMA assessment, it gives you more gravitas, so you can better influence a buyer when making offers on your home.