What is price per square foot?
When looking at the housing market, it is important to compare houses
to be sure that the sales price of a house is comparable to the other
houses in the market. Since not all houses are easily comparable, one
basic way to judge the market value of a house is to compare the price
and living area of a home.
Example: A house that is on the market at a fair value of $250,000 and is
2,000 square feet has a price per square foot of $125. If a similar home
has 1,800 square feet, you would expect the sales price to be around