I get a lot of Buyers who base their decision on what price to offer on a house based on cost per square foot. This is faulty for a couple of reasons. Size is a very minor predictor of value.
1- FIXED COSTS- There are fixed costs whether the home is 2000 sft or 5000 sft. The well, septic, bringing in utilities from the road and lot cost and clearing are pretty much the same between the 2 homes.
2- ROOM COUNT- You can have 2 homes that are each 4 bedrooms, 3 full baths but the same total room count although one is 1000 sft large than the other. An 8 room home is an 8 room home. You just get bigger 8 rooms. I doesn’t significantly change the utility of the home. You will get more utility from a 9 room home even though it is smaller. What is the “value” of a 16-18 ft dining room? It is more than twice the size of a 12×10 ft dining room in total area but does not provide twice the value. It does give SOME value to entertain more family guest but not twice the value.
3- BALANCE- You can have 2 home of equal size and room count but loose utility because the balance of the rooms. Some of the newer homes have huge family rooms but living rooms that only function as a parlor or palatial master suites at the expense of the size of the other bedrooms.
4- LOCATION AND SETTING- These are by far the most important features affecting value. Lack of back yard, steep driveway or busy road can reduce the value of totally identical homes by as much as 25%. Perhaps a view of the water or amenities has value for you. How much would you pay for a pool or a huge patio or easy access to work?
Ultimately value to a Buyer has to do with how they are going to use the home. Do they need a space for an at home office, a finished basement for teens or hobbies or would they rather it be unfinished for storage, a main level full bath to accommodate older houseguest rather than 3 full baths upstairs? Where is the laundry? How do you access the garage? How is the additional parking? These are all floor plan issues not size issues.
My ideal home would have a galley kitchen equipped with a microwave and a refrigerator since I do not cook. (I am a talented reheater). I would place more value on a 2000 sft ranch with an attached 2 car garage, level 1 acre and main level laundry than a 4000 sft colonial on 5 acres with the garage under. Ask yourself, “Why do I need 4 full baths?”. That VALUE does it have for your lifestyle.