How to Calculate the Average Price Per Square Foot
When comparing homes for purchase or rent , one factor to consider is the price per square foot. To determine this cost, you need to know the price of the home as well as the size of the home. The price per square foot varies depending on the type of the home and where the home is located. For example, a house in the downtown area of a major city will have a much higher cost per square foot than a home in a rural area.
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Instructions
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Add the square footage for each room to find the total square footage for the home if the floor plan does not include the total square footage for the entire home.
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Look up the price of the home on the contract or the offer sheet. If you are looking at potential homes, you can use an online resource to estimate the cost of homes in the neighborhood.
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Divide the cost of the home by the total square footage to find the average price per square foot for the home. For example, if the house is priced at $180,000 and has 1,900 square feet, divide $180,000 by 1,900 to get $94.74 per square foot.
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