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's calculated by dividing the total price of a property by its total square footage.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Total Price — The complete price of the property in dollars
• Area — The total area of the property in square feet

Explanation: This calculation gives you a standardized value that can be used to compare properties of different sizes.

3. Importance of Price per Square Foot

Details: This metric is crucial for real estate comparisons, investment analysis, and understanding market value. It helps normalize prices across properties of different sizes.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why use price per square foot?
A: It allows for comparison between properties of different sizes and helps identify value differences in real estate.

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

Q3: Does this include land value?
A: Typically yes, unless you're calculating building-only value. Be consistent in what you include in your comparisons.

Q4: Are there limitations to this metric?
A: It doesn't account for property condition, layout efficiency, or special features. It's just one metric among many to consider.

Q5: How does this differ from cost per square foot?
A: Price per square foot refers to sale price, while cost per square foot typically refers to construction costs.