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 property's price by its total square footage.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

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

Explanation: This calculation gives you a standardized value that allows for comparison between properties of different sizes.

3. Importance of Price per Square Foot

Details: Price per square foot is crucial for real estate investors, home buyers, and appraisers to assess property value, compare similar properties, and identify potential overpricing or bargains in the market.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What's a good price per square foot?
A: This varies greatly by location, property type, and market conditions. Always compare with similar properties in the same area.

Q2: Does price per square foot include land?
A: Typically yes, unless you're calculating for just the building. Be consistent in your comparisons.

Q3: Why do smaller homes often have higher price per square foot?
A: Fixed costs (like kitchens and bathrooms) are spread over fewer square feet, making smaller homes more expensive per unit area.

Q4: Should I only consider price per square foot when buying?
A: No, it's just one metric. Also consider location, condition, layout, and other factors.

Q5: How accurate is price per square foot for valuation?
A: It's a good starting point but not definitive. Professional appraisals consider many more factors.