City-Data Forum How is cost per square footage calculated?
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09-25-2019, 04:02 PM
 208 posts, read 126,472 times Reputation: 70

How is cost per square footage calculated?

Is there a formula/metric to plug in?

09-25-2019, 04:09 PM
Quote:
 Originally Posted by mrxalleycat How is cost per square footage calculated? Is there a formula/metric to plug in?
It's a 3rd grade arithmetic function; simple division. \$Price ÷ square feet
eg: \$237,400 ÷ 1840sq ft = \$129/sq ft

However accurately derived at the practical level it's a useless factoid

09-25-2019, 04:36 PM
 1,415 posts, read 2,112,876 times Reputation: 1009
Quote:
 Originally Posted by MrRational It's a 3rd grade arithmetic function; simple division. \$Price ÷ square feet eg: \$237,400 ÷ 1840sq ft = \$129/sq ft However accurately derived at the practical level it's a useless factoid
Oh I don't know, it's a data point, one of many, but I would definitely not call it useless.

09-25-2019, 05:16 PM
 Location: OK 2,751 posts, read 6,554,177 times Reputation: 1913
Quote:
 Originally Posted by MrRational It's a 3rd grade arithmetic function; simple division. \$Price ÷ square feet eg: \$237,400 ÷ 1840sq ft = \$129/sq ft However accurately derived at the practical level it's a useless factoid
Except that the \$price includes everything else such as garage, outbuldings, etc. which make this unreliable and appraisers don't use it.

09-25-2019, 05:25 PM
 465 posts, read 418,289 times Reputation: 1237
Take the price of the home, subtract the value of the land, improvements, ancillary improvements, amenities, and updates. Divide the number you have left over by the sq. ft.

Or, use \$50/sf, which is pretty standard around the county, at least until you get over \$1M.

09-25-2019, 05:30 PM
 Location: USA 19,790 posts, read 9,509,365 times Reputation: 14837
For rentals, the rental rate per sq. ft. is MARKET based. Are you talking about commercial or residential real estate?

09-25-2019, 05:40 PM
 Location: Raleigh NC 10,109 posts, read 7,582,618 times Reputation: 8708
^for the commercial market, it is. not for the residential.

09-26-2019, 12:07 AM
 326 posts, read 73,687 times Reputation: 669
Quote:
 Originally Posted by mrxalleycat How is cost per square footage calculated? Is there a formula/metric to plug in?
Math.

09-26-2019, 01:57 AM
 7,375 posts, read 4,075,243 times Reputation: 15613
Quote:
 Originally Posted by Annemieke Roell Except that the \$price includes everything else such as garage, outbuldings, etc. which make this unreliable and appraisers don't use it.
A 1500 square foot house on a 30'x50' lot near a terrible school in a tired urban area listed at \$250,000 has the exact same price per square foot as a 3000 square foot house on two acres of ocean view property in a premier school district listed at \$500,000. Which is the better buy?

How much per pound did you pay for your last car?

09-26-2019, 08:20 AM
 1,415 posts, read 2,112,876 times Reputation: 1009
Quote:
 Originally Posted by kokonutty A 1500 square foot house on a 30'x50' lot near a terrible school in a tired urban area listed at \$250,000 has the exact same price per square foot as a 3000 square foot house on two acres of ocean view property in a premier school district listed at \$500,000. Which is the better buy? How much per pound did you pay for your last car?
depends on whether or not you are looking for a home or an investment. the former could be the better buy if it's in a area that is gentrifying and seeing faster appreciation.
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