Calculating price per square foot    (page name)

Difficulty: Easy

Instructions

Things You'll Need:

·                       Calculator

·                       Square Footage of property

·                       Cost of property

1.                  Step 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.                  Step 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.                  Step 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.                  Step 4

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