How to Calculate Price Per Square Foot

This will tell you how to calculate the value of a piece of property by square foot.

Difficulty: Easy

Instructions

Things You'll Need:

• Calculator
• Square Footage of property
• Cost of property

1. Determine the value of the property.
   
   Lets say a house you are looking at in San Ramon, California is $899,000 and 2300 square feet.
   
   Another house you are looking at is in Livermore, California is $399,000 and 1000 square feet.

2. Divide the cost of the house by the square footage:
   
   San Ramon House:
   $899,000/2300=390
   $390 represents the cost per square foot.
   
   Livermore House:
   $399,000/1000=399
   $399 represents the cost per square foot.
   
   Using this calculation we can tell that the more expensive house is a better deal (as price per square foot) than the cheaper house.

3. Now try in with land:
   
   San Ramon = 10,000 square feet lot
   Livermore = 4,500 square feet lot
   
   San Ramon House:
   $899,000/10000=89.9
   $89.90 represents the cost per square foot.
   
   Livermore House:
   $399,000/6000=66.5
   $66.50 represents the cost per square foot.
   
   Using this calculation we can tell that the more expensive house is a worse deal (as price per square foot) than the cheaper house.

4. It all comes down to you though, wether you want a large lot, or a large house, either way, I hope this was helpful.