When applying the Square Foot Method, how do you calculate the final property value?

In the Square Foot Method, the final property value is determined primarily by multiplying the total square footage of the property by the price per square foot. This approach involves establishing a price per square foot based on comparable properties in the market, which reflects current market trends and attributes specific to the subject property. This price is then applied to the total square footage to derive a comprehensive valuation for the property.

By using this method, appraisers can efficiently estimate property values as it simplifies the valuation process into a straightforward calculation. The price per square foot acts as a uniform measure that considers factors like location, type of property, and other variables influencing market value.

In contrast, other methods mentioned, such as adding land value or multiplying by a depth factor, complicate the calculation without adhering to the simplicity and effectiveness of the square foot valuation approach. The depth factor, for instance, is an adjustment typically applied to assess factors like the shape of the lot or its usability, but it is not part of the fundamental calculation in the Square Foot Method. Thus, multiplying total square footage by price per square foot stands out as the most accurate and applicable calculation for determining final property value using this valuation method.