One of the most important metrics to consider when buying or building a home is the square footage. The square footage will impact a number of decisions, some you may not even consider until it’s too late. Square footage is essentially the amount of liveable space a home has. Square footage impacts not just how much space you have to live in, but it also impacts things like bills and taxes, so here are a few things to keep in mind when deciding how much square footage you need in your home.
It Impacts Home Value
Determining home value, especially in a hot market like Toronto can be tricky. Home value is a combination of subjective and non-subjective factors. One huge metric that impacts a home’s value though is the square footage. The more space a home has, the more value it has typically.
Many people make the mistake of adding more square footage when building in a bid to increase the value. While this can help, be wary of overbuilding and out-pricing yourself in your market. If no one in your area can afford a home as big as the one you have, you’ll actually end up losing money.
It Plays a Role in Mortgages
When getting a mortgage, most lenders require an appraisal. The appraisal will look at things like square footage. If there’s a discrepancy between the square footage and price, a lender could determine the home is worth less than the asking price and deny you the mortgage, approve you for less than the house, or charge you higher interest rates.
It Matters for Property Taxes
Not all home buyers and builders think about property taxes when they look at houses. Purchasing a home isn’t a one-time payment, unfortunately. The government taxes properties based on home value, which as we discussed is impacted by square footage. A bigger home will have more value and there more be taxed higher.
When you’re trying to determine how much square footage you need, take a look at how the size will impact property taxes. You don’t want to make the mistake of getting something bigger than you can afford each year on taxes.
It Affects Heating & Cooling Costs
People often don’t think of the monthly costs of running home during the decision process. One thing our custom home builders always encourage clients to consider is how their choices will impact monthly bills such as heating and cooling.
Simply put, a house with more square footage will cost more to heat in the wintertime, and more to cool in the summertime. There are things you can do to lower these costs like investing in energy-efficient windows, opening windows, using the fireplace, etc., but the bigger you buy/build, the more you can expect your monthly bills to be impacted.
It Influences How You Live
Space is a hot commodity in a city like Toronto where lot sizes are limited. Every family has a different ideal amount of space when it comes to living. Before you buy or build, consider how much space your family actually needs. You don’t want to invest in a space that is too small, nor one that is too big. Square footage is a bit like the Goldilocks’ story- you want the perfect amount for how you live.
Are you interested in building a custom home? Contact us today! Our team of custom home building experts is ready to make your dream house a reality!