1. Location. Because of past popularity, houses in neighborhood one are worth more than in neighborhood two. Why? Because more people want that location. More demand, less supply.
   
   
2. Square feet. The bigger the house, the more it is worth. Is it possible that a tiny house in location 1 is worth more than a larger house in location 2? Sure, because of answer #1 above.
   
   
3. Condition. Grandma's house hasn't been redecorated in 25 years. It has an old furnace, old roof and leaky windows. Her house won't be worth as much as the same house next door that looks like a picture out of Pottery Barn, and is also in perfect mechanical and structural condition. Don't forget, Grandma's house or it's equivalent occurs in every price range, $100,000-$1,000,000!
   
   
4. Amenities (or lack of them). In the popular Mpls/St. Paul city neighborhoods, amenities would include things such as updated kitchens and baths, 4th bedrooms, 2nd and 3rd bathrooms, 2nd and 3rd car garages, amount of natural woodwork, including hardwood floors, and updating that is historically relevant to the home. In the suburban neighborhoods, amenities would include things like 3rd car garages, family rooms attached to kitchens, home offices, master suites, walk-out basements, wooded lots, etc.

Put all these things together, you should be able to match up the same square footage, in the same condition, in the same location with the same number of amenities, and arrive at the same price! Remember though, Real Estate is about desire. A property is worth what someone will pay for it!