A Step-By-Step Guide To Finding Price Per Square Foot Or Price Per Square Metre
You should know the price per square foot if you are looking to invest in real estate.
One of the best ways to value a property, no matter where it is located, is to use this calculation. This calculation can also be used to compare the differing values of properties in order to determine if they are worth investing in.
We look at how you can calculate a property's price per square metre and how to use this information when you are looking for a home. And, as a bonus, it's not nearly as difficult as you may think.
It Is Easy To Caluclate A Property’s Square Foot Value
A property's price per square foot in the U.K. is determined by its size. As a property grows in size, its price per square foot decreases.
Having said that, in highly desirable areas such as popular cities or coastal regions, this calculation reverses. So, as a property's size grows, so does its price per square foot.
You might be surprised to find out how easy it is to determine a property's price per square foot.
Any property's square footage is calculated by dividing the sale price by the square footage of the property.
Several free online calculators are available to help you estimate the price per square foot. Naturally, you're unlikely to be able to do this equation in your head.
This is how calculating a property's price based on square feet works:
The price per square foot = £300,000 / 1,600 = £187.50 - which means that the property is valued at £187.50 per square foot.
FAQS
How Important Is A Property's Square Footage?
A property's square footage is important because it is one of the only measurements in property valuation that are not subjective.
Additionally, there are many other factors that are taken into account, such as the views, layout of the property, natural light levels, and even the property's location on the street. In other words, it is completely up to the individual.
Calculating the value of a property based on square footage is a real, tangible process. Moreover, it's important!
Because of its tangibility, square-foot value calculations also affect mortgage value. It's a way to establish value and to know what you're paying based on the calculation.
Buyers will find the calculation very helpful since it allows them to easily compare properties and prices they are interested in.
How Can I Compare property values using square footage?
Property investors and buyers sometimes are interested in more than one property at the same time, and they want to determine which has the highest value per square foot.
We have included an example of how to compare property values based on square footage below.
A 1,400-square-foot property is listed for £310,000. A 1,200 square foot property costs £285,000.
The third property, which is 2,500 square feet in size and sells for £410,000, is the largest. This is how we can calculate the price per square foot for all three properties:
⦁ The price per square foot for property 1 is £310,000 / 1,400 = £221.42
⦁ The price per square foot for property 2 is £285,000 / 1,200 = £237.50
⦁ The price per square foot for property 3 is £410,000 / 2,400 = £170.83
While the third property is more expensive, it offers a greater amount of space.
Due to this, it offers the best value for your money, as its price per square foot of floor space is lower.
A number of factors must be considered when purchasing a property, but it is always the price per square foot that is one of the most important.
Why Is Square Footage An Important Valuation Figure?
A property's square footage is important because it is one of the only measurements in property valuation that are not subjective.
Additionally, there are many other factors that are taken into account, such as the views, layout of the property, natural light levels, and even the property's location on the street. In other words, it is completely up to the individual.
Calculating the value of a property based on square footage is a real, tangible process. Moreover, it's important!
Because of its tangibility, square-foot value calculations also affects mortgage value. It's a way to establish value and to know what you're paying based on the calculation.
Buyers will find the calculation very helpful since it allows them to easily compare properties and prices they are interested in.
The problems with pricing a property by square footage
Although square footage valuations are definitely valuable, they don't provide a complete picture to a buyer. In terms of measuring space, the calculation is good, but not always an accurate measure of the factors to also consider.
For different properties, the calculation won't always work. Price per square foot, for example, might not adequately reflect a home designed in a certain way.
⦁ Volume is not considered in price per square foot: The height of the ceiling is a very important measurement for volume calculations - but it is not taken into account.
⦁ Outdoor space needs to be carefully evaluated: When outdoor space is included in the price per square foot, it becomes problematic. Because outdoor spaces and gardens are listed independently of a living space, the square footage of a property doesn't take into account an opportunity to develop the property.
MousePrice helps you value your property
MousePrice is a go-to hub for property valuations. At MousePrice, we display the price per square foot valuations even for properties not yet on the market!
Join us if you wish to evaluate your own property or compare the value of properties that interest you.
In terms of investing in a property, our property experts can help you determine where your money is best spent.
We can help you price your home based on a variety of factors, not just its size if you're a homeowner looking to sell.
If you are interested in learning more about how MousePrice can assist you, please don't hesitate to contact us today.
Image source: https://unsplash.com/photos/05XcCfTOzN4
