You can convert the price of a house into cost per square foot.
The price of a house can be converted into terms of cost per square foot. A square foot is a unit used to measure area. Knowing a property's cost per square foot allows you to compare properties of different sizes and costs using a common factor. For example, you can compare a 1,500 square foot home selling for $200,000 with a 1,750 square foot home selling for $250,000. Similar houses in the same area typically sell for a similar cost per square foot because a buyer is not likely to pay much more for a property than he would for a similar property nearby.
Instructions
1. Determine the total cost and area in square feet for a particular property. For example, calculate the square foot cost of a 2,000 square foot house selling for $300,000.
2. Divide the total cost by the total area in square feet -- $300,000 divided by 2,000 equals 150.
3. Record the result in cost per square foot. This equals $150 per square foot.
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