When it comes time to buy or sell a home, one of the first numbers people often focus on is the square footage. But not all square footage carries the same weight - especially when you’re comparing above grade (main living levels) to below grade (typically basement) space.

Let’s take a look at three homes, each with 4,000 square feet of finished living space:

Home A: 4,000 SF above grade; no basement

Home B: 3,000 SF above grade; 1,000 SF finished basement

Home C: 2,000 SF above grade; 2,000 SF finished basement

Even though all three homes offer the same total amount of finished space, they would not be priced the same - by buyers or appraisers.

Why? Because square footage above grade is generally more valuable than space below grade.

Key Takeaways...

1. Price Per Square Foot Can Be Deceiving

When calculating price per square foot, the total finished space is often used - regardless of whether that space is above or below grade. That can skew comparisons. A home with much of its living space in the basement might look like a great deal based on price per SF, but it's not apples-to-apples with a home where all that space is above grade.

2. Compare Like With Like When Pricing Your Home

If you're preparing to sell, it's important to look at recently sold homes that are structurally similar to yours - not just in size, but in how that space is distributed. A 3,000 SF ranch with a finished basement isn't directly comparable to a 3,000 SF two-story with no basement space.

3. Don’t Be Surprised by Pricing Differences

You might come across two homes with the same total finished square footage but noticeably different price tags. Often, the difference comes down to where that space is located. Buyers typically place a premium on above grade living space - especially for bedrooms, kitchens, and main living areas. Basement space can add value, but it's usually seen as secondary living area.