Calculate and compare the price per square foot of two homes to see which is the better value.
Price per square foot is a quick, standardized way to compare homes of different sizes on a level playing field, though it doesn't account for lot size, condition, or location differences.
Price per Sq Ft = Home Price ÷ Total Square Footage
A $350,000, 1,800 sq ft home costs $194.44/sq ft, while a $420,000, 2,200 sq ft home costs $190.91/sq ft - a slightly better value despite the higher price tag.
Total price divided by total square footage of the property.
It normalizes price across homes of different sizes, making relative value easier to compare.
It doesn't account for lot size, condition, location quality, or finish level, all of which significantly affect true value.