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Buyers Question How Far Their Dollar Really Goes

Recently, GOBankingRates studied how far $300,000 would last a homebuyer depending on the state they were looking to purchase in. Findings show that though you may be able to get a 3,500 square foot home in Indiana, the same dollar amount will only get you 600 square feet in Washington, D.C. Getting a realistic sense of how many square feet for the dollar can be purchased before shopping will ultimately save the buyer heartache, and their real estate agent will be better able to determine their needs.

To determine their rankings of best and worst states for purchasing power, GOBankingRates took the median listing price in every state in the U.S. and District of Columbia and divided by $300,000 in order to get the median list price per square foot. They found that the states that buy the most square footage for $300,000 were Indiana, Mississippi, Arkansas, Ohio, West Virginia, Alabama, Oklahoma, Kansas, Missouri and Georgia with Georgia being the lowest at 3,020 square feet and Indiana being the highest at 3,478 square feet. For a home in these states they buyer will pay $99 or less per square foot.

Among the lower square footage regions are District of Columbia, Hawaii, California, Massachusetts, Colorado, Oregon, Rhode Island, New York, Washington, and Montana ranging from the lowest, Montana, at 1,779 square feet to District of Columbia at 603 square feet. In D.C. buyers can expect to pay approximately $497 per square foot.

This can seem overwhelming, especially for the latter 10 states, but there are a few tips from The National Association of Realtors to help your buyers keep in mind during the search process.

Identifying home wants versus needs is key in a sellers market. Stainless appliances and hardwood floors can be added at a later time, but if your buyers want to be in a certain neighborhood this should be addressed in the search.

When the right home comes along, urge them to make decisions quickly. It may be tempting to submit a low offer to start, but in this market that could mean losing the home entirely. Put the highest offer in at the beginning and avoid too many contingencies that will restrict the seller and turn them away from the offer.

To view the full GoBankingRates study, click here.

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