Which valuation method determines property value based on its size in square feet?

The square footage approach is a valuation method that calculates the value of a property primarily based on its size measured in square feet. This method establishes a price per square foot for comparable properties in the same area, allowing for an estimate of value for the property in question. It is particularly useful in situations where the property being valued has similar characteristics to recently sold properties, making it easier to determine an appropriate market value based on its size.

This approach is favored when there is a sufficient amount of data available on comparable properties, as it allows for a straightforward calculation of value and provides a clear metric for assessment. By emphasizing size, this method can be beneficial in residential real estate markets where consistent sizes and features exist among properties, making comparisons simpler.

In contrast, other approaches, such as the cost approach, focus on the cost to reproduce or replace a property rather than solely on its size. Similarly, the direct comparison approach considers various factors including recent sales of similar properties but does not designate size as the sole determining factor. The community approach, which is not a standard term in property valuation, lacks the specificity required for effective appraisal practice. Thus, the square footage approach is the most relevant method for determining property value based specifically on its size in square feet.