Square footage and bank apprasials
I have my house listed almost 2 months. I'm confused about comps vs. price per sq. footage. The way I understand it, houses are listed by price for sq ft. If a house sells for a higher amount, it raises the price per sq. ft. Bank appraisals are based on that price. If an accepted offer is for a higher amount, the bank may not appraise at that amount.
My confusion is, what is the point of a listing price if it is above the current price per sq ft? It appears that you must price your house accordingly or your house won't appraise.
There is a large volume of homes for sale. Sellers are dropping their prices as many are desperate to sell. Those houses are selling but houses in the higher bracket are selling more slowly. The sale of the lower priced homes are dictating the price per sq ft.
The price per sq. ft is based on an average of houses sold. Lower priced houses are selling faster. They are lowering the price per sq. ft. So, it seems it doesn't matter how good your house it, a buyer can only get a mortgage based on appraisal which is based on price per sq. ft.
This seems unfair to me as a seller.