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Price Per Square Foot Formula:
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Price per square foot is a common metric used in real estate to compare the value of different properties. It's calculated by dividing the total price of a property by its total square footage, providing a standardized way to evaluate property values regardless of size.
The calculator uses the simple formula:
Where:
Explanation: This calculation provides a standardized value that allows for easy comparison between properties of different sizes and prices.
Details: Calculating price per square foot is essential for real estate comparisons, property valuation, investment analysis, and understanding market trends in specific areas.
Tips: Enter the total house price in your local currency and the total square footage of living space. Both values must be greater than zero for accurate calculation.
Q1: What is a good price per square foot?
A: This varies significantly by location, property type, and market conditions. It's best to compare with similar properties in the same area.
Q2: Does this include all square footage?
A: Typically, price per square foot calculations use heated and cooled living area. Garages, unfinished basements, and outdoor spaces are usually excluded.
Q3: Why is price per square foot important?
A: It provides a standardized way to compare properties of different sizes and helps identify overpriced or underpriced properties in a market.
Q4: Are there limitations to this metric?
A: Yes, it doesn't account for property condition, lot size, location within a neighborhood, or special features that affect value.
Q5: How does price per square foot vary by location?
A: Significantly. Urban areas typically have higher prices per square foot than rural areas, and desirable neighborhoods command premium rates.