Analyzing comps using price per sq ft

[Marcus Jefferson]

Hi BP! I have a potential deal in Northern California. The house is probably 1k sq ft larger than any other house in the area.. when analyzing comps rather than using recent sold prices can I use recent sold price per sq ft? The recent sold houses are all smaller than this house. This house is absolutely grorgoues inside and out and 1k sq ft larger than any of the recent sold. I'm going to wholesale the property and don't want to mess up my ARV / comp estimate. Thx all!

[Wayne Brooks]

For a house significantly larger than the normal comp houses, you will get a lower price per SF.  People buying a $200k house want to live in a $200k neighborhood, not a $100k neighborhood.