Ya can't go by sq. footage alone. You've got to consder the big picture. Location, amenities, age of the building, age and tpye of mechanics,the amount of updating it needs or doesn't need and then you've got to consider the personal side of it. Some people hit it just right. A couple needs to sell so they go low or maybe the market has changed and what was a good number last month isn't this.

A house is only worth what you are willing to pay for it AND what the seller is willing to agree to.

Comps put you in the ballpark but they aren't the whole story.

It's true that one story homes are often more desirable and therefore might command a slightly higher price. That said, it probably more realistic to compare similarly sized homes - one story or two - than it is to compare a larger home with a smaller home. A 2,700 sq. foot home will likely have some amenities that a smaller home might not have and might therefore command a premium. I'd say it make more sense to compare number of beds/baths in similarly sized homes than it is to look at a price/sq. foot.

When building a home I was told that certain styles of homes deliver more sq footage for the price built - i.e. 2 stories and multi-levels are cheaper to build per square foot than a ranch. Especially a ranch with a full basement. A 2700 sq foot ranch is a pretty big ranch so I wouldn't be surprised its more than the 2 stories, everything else being equal of course (age, condition etc).

An appraiser generally will not use a 2 story as a comp for a single level because as mary said, single levels are more expensive to build. He/she may use the smaller one-stories, or he may move his search for comps away from the exact neighborhood to similar neighborhoods within a mile of the home. This is probably why the agent didn't send the 2 stories until you asked for them. When comparing comps, you need to compare apples to apples.

What you need to determine is the reason for the $35,000 difference between the last big ranch sold and this one. Does this one have upgrades the other did not? Or is the owner of this one being unrealistic as to the price?

One story homes cost more here. There cost more to build as they have larger basements (standard foundation here)and usually more spread out plumbing. Because it needs a much bigger footprint, a large ranch home often needs a bigger lot than a two story with the same interior sq ft. Ranches are far less common than two stories here, and a nice ranch commands a premium over a nice two story.

Thank you for the good advice. The homes are all in the same subdivision and were built by the same builder the same year (1993). There are no basements and the builder originally had 5-6 one story and two story plans. Thus, from the MLS pictures, the houses look quite similar. We are meeting with our realtor this morning, however, he said the owners already have another offer. (after 3 days!) An IBM sponsored relocation company is also involved that has to approve any offers. I'll keep you posted.

Every house has some expensive parts (kitchen, baths) and some cheaper parts (volume-ceiling LRs, BRs, garages). The smaller house costs more per sq ft than a huge one with the same number of kitchens and baths. Often a one-floor house costs more new IF the builder has to devote more land to build it -- it's a land cost more than house cost.

An example: At our condo on Maui the 1 BR 2 bath condos cost most per sq ft. The largest 2 BR 2 bath has the least per sq ft cost. (Be happy you are not buying there: $900 per sq ft currently.)

I agree with rrah. However, what it costs to build & what buyers want to pay for a One Story vs Two Story are two different things.

Single story homes cost more to build in the NE, because of the basements & roof lines. If you build a single story on a slab, it's comparable to a two story with the same sqft.

To build a 2700 sqft SLAB Ranch will be similar to a 2700 sqft two story home (with a basement) in cost.

An approximate tool for my area (NE) is that a 2700 sqft Colonial (with a basement) will cost similarly to an 1600-1800 sqft Ranch with a basement. That is the closest that you can compare two story to one story homes. I believe the formula would be apprx. 30-40% difference.

In your case, it seems that the SMALLER Ranches would drag the price down for the largest Ranch in the neighborhood. Also, the two story ones are not good comps. Your best comp is the previous Ranch (same sqft) sale with adjustments for upgrades or lack of them & the CURRENT RE market.

Also, RE is regional. I believe you get charged more for a two-story in FL (no basement) than the same sqft all One Story on a slab. Sometimes you pay more depending on what style is more desireable in a given region.

Ironically, in my area, the most expensive house to buy (not nec. to build) is a Two Story with a Master bedroom downstairs. Other than the 55yo communities springing up now, those don't exist. Almost no comps around, so this really depends what someone wants to pay. Ranches are the most expensive to build but people do not want to pay for a Ranch. Weird. Supply, demand & desirability are factors in prices.

It's always cheaper to build up, than out, and I would think that would be nation wide, as building material are building materials. I've never heard it being the other way around. It makes perfect sense to me.

Mpp, where is the home in Austin? I hope to be moving there as soon as my home sells. Have you looked in the unincorporated area outside of Manor? There's a development called Shadowglen where you get a lot of house for the money~many spec homes at the moment for a great price. ;o)