1. What is Price per Square Foot?

Price per square foot is a common metric used in real estate to compare the value of properties by standardizing the price relative to their size. It helps buyers and sellers understand the relative value of properties regardless of their total size.

2. How to Calculate Price per Square Foot

The formula for calculating price per square foot is simple:

Where:

• Total Price — The purchase price or value of the property in dollars
• Square Footage — The total area of the property in square feet

Example: If a home costs $300,000 and has 1,500 square feet, the price per square foot would be $200 ($300,000 ÷ 1,500).

3. Importance of Price per Square Foot

Details: This metric is crucial for comparing properties of different sizes, assessing neighborhood value trends, and determining if a property is priced appropriately compared to similar properties in the area.

4. Using the Calculator

Tips: Enter the total price in dollars and the square footage in square feet. Both values must be positive numbers. The calculator will automatically compute the price per square foot.

5. Frequently Asked Questions (FAQ)

Q1: Is price per square foot the best way to compare properties?
A: While useful, it shouldn't be the only metric. Factors like location, condition, and amenities also affect value.

Q2: What's a "good" price per square foot?
A: This varies by location, property type, and market conditions. Compare with similar properties in the same area.

Q3: Does price per square foot include land value?
A: Yes, unless you're calculating for just the building (in which case you'd use building square footage only).

Q4: How does price per square foot vary by property type?
A: Smaller properties often have higher price per square foot than larger ones due to fixed costs being spread over less area.

Q5: Should I use price per square foot when renovating?
A: Yes, it can help determine if renovation costs will be recouped in increased property value.