How to Calculate Price Per Square Foot

Image courtesy Microsoft Virtual Earth

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

Things You'll Need

• Calculator
• Square Footage of property
• Cost of property

Instructions

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.