Price Per Square Foot

Calculating a home's price per square foot is a common method used in real estate to compare the relative value of different properties. To calculate the price per square foot, you'll need two pieces of information: the total price of the home and its total square footage. Here's the formula:

Price per Square Foot=Total PriceTotal Square Footage

Here's a step-by-step guide:

  1. Determine the Total Price:

    • This is the overall cost of the home. It may be listed on a real estate website, in a property listing, or you can obtain it from the seller or the real estate agent.
  2. Determine the Total Square Footage:

    • The total square footage includes the entire living space of the home. You can find this information in the property listing, on the house plans, or by measuring the interior of the home. Include all finished living areas, but exclude non-living spaces like garages or basements that may not be used for living.
  3. Plug the Values into the Formula:

    • Divide the total price by the total square footage using the formula mentioned above.

    Price per Square Foot=Total PriceTotal Square Footage

  4. Example:

    • Let's say a home is listed for $300,000 and has a total square footage of 2,000 square feet. Price per Square Foot=$300,0002,000 sq. ft. Price per Square Foot=$150 per sq. ft.

Keep in mind that the price per square foot can vary widely based on factors such as the location, neighborhood, the condition of the home, and the local real estate market. It is just one of many factors to consider when evaluating the value of a property. Additionally, using this metric to compare properties should be done cautiously, as differences in the quality of construction, finishes, and amenities can significantly impact the value.

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