Price Per Sq Ft…. The Starbucks model.

I need to make this clear. This is not my blog post however it was written by a great friend and appraiser peer Ryan Lundquist in Sacramento CA. He is the writer of the Sacramento Appraisal Blog that is more location driven but sometimes he puts out things that just need to be shared on a national level. He is a well respected appraiser, blogger and a man that has a wealth of information. (disclaimer… The photo used is that of Ryan Lundquist and his blog)

The following is a small snippet from his blog post and I suggest you click the link to read more.

It’s easy to get into valuation trouble when we focus too much on price per sq ft. Seriously, this can be a massive problem leading to major heartache during escrows. Okay, that sounds so dramatic, but it’s important to know how to explain how price per sq ft works. Let’s talk about this by using my favorite analogy – Starbucks cups. I wrote about this six years ago, but it’s time to expand some thoughts. Here’s round two.

Click this link to read more.

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