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"The house down the street sold for $150 a square foot so mine should appraise for the same value, right?" This is actually one of the most common misconceptions we encounter in performing New Orleans appraisals. The answer is: not necessarily. In addition to the obvious things that set one home a part from another, like condition, updates and amenities, the size of the home will impact the price per square foot. Generally, the rule of thumb is that the larger the home, the lower overall price per square foot and the smaller the home the larger overall price per square foot. This is because there are floors and ceilings in all marketing areas. This means there is a minimum price per square foot and a maximum for every marketing area. The result is that the smaller houses in a marketing area will generally obtain the highest price per square foot and the largest, the smallest. Why? Because the smallest house sets the floor price or in other words the lowest price homes will sell for in a particular area. The largest homes tend to set the ceiling, or what is the highest price a buyer will pay for a home in a particular marketing area. So the owner of a 3000 square foot home will probably find that they won’t get the same price per square foot as the owner of the 1500 square foot home, even assuming that the homes are in comparable condition with comparable amenities.