PSF stands for price per square foot. This is a common real estate term you'll encounter when you are buying or selling a home. The procedure to perform the price per square foot calculation is simple, particularly if you use a calculator. A home's PSF can give you a comparison of the home's price, and is particularly helpful if you are shopping homes that are different sizes, as it can give you an idea of the value at the listed price. Bear in mind that there are other factors that may play into the PSF, including a home's amenities and location. Therefore, a home with a lower PSF isn't necessarily a better value.
Gather your calculator and the numbers required to perform the calculation. You'll need the home's square footage to determine the PSF. You'll also need the home's price.
Input the home's price into your calculator. Push the "Divide" button.
Input the home's square footage. Push the "Equal" sign to perform the calculation. The displayed number is the home's PSF. For example, if the home's price is $100,000 and the square footage is 2000, the price per square foot is $50 (100,000/2000 = 50).
- Washington Post: Price Per Square Foot
- Sarah Jullion Real Estate. "The Cost Per Square Foot Factor." Accessed April 3, 2020.
- Turner & Son Homes. "Why Do Bigger Houses Have a Lower Cost Per Square Foot?" Accessed April 3, 2020.
- HomeLight. "Why Average Price Per Square Foot Can Only Tell You So Much About a Home." Accessed April 3, 2020.
- National Association of REALTORS®. "What Is the Average Price Per Square Foot for a Home—And Why Does It Matter?" Accessed April 3, 2020.
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