About Price Per Square Foot
Real estate listings can be deceiving. A $400,000 house might seem expensive compared to a $350,000 house, but if the first one is a mansion and the second is a shack, the price tag is misleading. Price Per Square Foot ($/sqft) is the "Unit Price" of real estate, stripping away the total cost to reveal the value density.
The Great Equalizer
Appraisers use $/sqft to compare properties of different sizes.
House A: 2,000 sqft for $500,000 = $250/sqft.
House B: 1,000 sqft for $300,000 = $300/sqft.
House A is actually "cheaper" per unit of space, even though the price tag is higher.
Context Matters
This metric varies wildly by location and condition.
Location: $1,000/sqft is standard in Manhattan, NYC. $100/sqft is standard in rural Kansas.
Size Curve: Smaller homes almost always have a higher $/sqft than larger homes. This is because every house needs expensive items like a kitchen, HVAC, and land. As you add more empty bedrooms (cheap space), the average cost dilutes.
How to Use
Use this tool to compare listings in the same neighborhood. If the average is $200/sqft and you find a house listed at $150/sqft, it might be a bargain—or a fixer-upper with hidden damage.