The Square Footage Trap: How Layout, Updates, and Livability Shape Value

One of the first questions buyers ask about a house is simple:
“How many square feet is it?”

It feels logical. More space should mean more value, and for decades price per square foot has been treated as a shortcut for comparing homes. Buyers gravitate toward the number partly because search sites place it right next to the price, making it feel like the most objective way to compare properties. But after walking through thousands of homes with buyers, one thing becomes clear. Two houses can have identical square footage and feel completely different to live in, and sometimes the smaller one is worth more. Square footage measures size. It does not measure usefulness.

I once sold a home just over 5,000 square feet that looked impressive on paper but confused nearly every buyer who walked through it. The layout was filled with oversized rooms, undefined areas, and spaces that had no obvious daily purpose. Buyers spent more time trying to interpret the floor plan than imagining their lives in it. Every showing turned into a tour of guesses rather than a tour of living. The home had plenty of square footage. What it lacked was intention.

The opposite problem also exists. Appraisals and public records typically count only above grade square footage. Anything below grade is valued differently even when it functions as normal living space. A split level listed at 888 square feet may include a lower level with a full bathroom, a legal bedroom with egress, and a comfortable family room. To a buyer, that lives nothing like an 888 square foot home. Some houses look smaller than they live while others look larger than they function.

Even true apples to apples comparisons do not stay equal for long. Two homes built by the same builder with similar layouts and finishes may start identical. Fifteen years later, one owner has updated kitchens, flooring, lighting, and bathrooms while the other has not. The square footage never changed, yet buyers now see two completely different homes. One feels current and move in ready. The other feels like a renovation project. Price per square foot treats them similarly. The market does not. Square footage sets the bracket. Design decides where you land inside it.

Dead space is not just unused space. It is expensive space. Tall entryways, oversized rooms, long walkways, and undefined areas add heating, cooling, furnishing, and maintenance costs without improving daily living. A well designed 2,000 square foot home often lives larger than a poorly designed 2,500 square foot one and costs less to operate every month.

A better question than “how big is it” is “how many problems does this floor plan solve.” When you walk in, do everyday items have a natural landing place, can two people cook without traffic jams, does furniture sit comfortably without blocking paths, and would you need immediate renovation just to make the house function? Homes that answer those questions well consistently outperform larger homes that do not because buyers understand them instantly.ot price homes like a spreadsheet. It prices livability. A smaller home with a thoughtful layout frequently attracts stronger offers because more buyers immediately understand how to live there. A larger home with awkward flow often sits longer even when priced competitively. Time on market forces price corrections, and price corrections reset buyer perception. Layout problems rarely appear in a single showing. They appear after twenty.

None of this means a 900 square foot home competes directly with a 5,000 square foot one. Size still establishes a broad value range. What changes within that range is how efficiently the space is designed, updated, and lived in. Markets reward homes that are easy to understand. The most valuable homes are not the ones with the most space but the ones where the space works. The most expensive square footage in any house is the part you never use.

If you’re thinking about buying, selling, or exploring your options, I’m here to guide you with clarity and care.

Karen Moeller
Karen Moeller
🌐 STLKaren.com
📧 Karen.McNeill@STLRE.com
📞 314.678.7866

About the Author:
Karen Moeller is a St. Louis area REALTOR® with MORE, REALTORS® and a regular contributor to St. Louis Real Estate News, helping clients make informed, data-driven decisions.


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