How is cost per square footage calculated? (appraiser, investment, price)

[mrxalleycat]

How is cost per square footage calculated?


Is there a formula/metric to plug in?

[MrRational]

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

[austinnerd]

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.

[Annemieke Roell]

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.

[thebigW]

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.

[Pilot1]

For rentals, the rental rate per sq. ft. is MARKET based. Are you talking about commercial or residential real estate?

[BoBromhal]

^for the commercial market, it is. not for the residential.

[Skipito]

Originally Posted by mrxalleycat

How is cost per square footage calculated?


Is there a formula/metric to plug in?

Math.

[kokonutty]

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?

[austinnerd]

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.