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Price Per Square Foot Formula:
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Price Per Square Foot (PPSF) is a common metric used in real estate and construction to compare property values and costs. It represents the cost per unit area and is calculated by dividing the total cost by the total square footage.
The calculator uses the simple formula:
Where:
Explanation: This calculation provides a standardized way to compare costs across different sized properties or construction projects.
Details: Calculating price per square foot is essential for real estate valuation, construction budgeting, rental pricing, and property comparison. It helps investors and buyers make informed decisions by normalizing costs across different property sizes.
Tips: Enter the total cost in your local currency and the total square footage. Both values must be positive numbers. The calculator will automatically compute the price per square foot.
Q1: Why is price per square foot important in real estate?
A: It allows for fair comparison of property values regardless of size, helping buyers identify good deals and sellers price their properties competitively.
Q2: 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.
Q3: Does price per square foot include land value?
A: Typically yes, as it's calculated from the total property price divided by the total livable square footage.
Q4: Are there limitations to using PPSF?
A: Yes, it doesn't account for property condition, layout efficiency, lot size, or premium features. It should be used as one of several valuation metrics.
Q5: How does PPSF differ for new construction vs existing homes?
A: New construction typically has a higher PPSF due to modern materials, energy efficiency, and warranties, but may not include landscaping or other finishing costs.