What Is "Dollars Per Square Foot"?

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A lot of people use the expression "dollars per square foot", especially in the home building process.
But this expression has not a widely admitted definition.
For example, a real estate agent may define it as the sales price of the home divided by square footage, incorporating the whole land.
On the other side, a contractor may or may not include issues like permits or financing in his way of seeing dollars per square foot.
The most important is that, when building your own home, everyone you work with in home building process should envision "dollars per square foot" exactly the way you do so that everyone has idea of what you are talking about and that everyone is on the same page with you.
First of all, define "square footage".
In this stage, it needs to include all living space: bathrooms, bedrooms, dining room, guesthouse, hallways, entryways, basement, kitchen, laundry room and so on.
Then, add the square footage together.
Then, define "dollars", the next step for determining the dollars necessary in the budget to define dollars per square foot.
Don't include all the costs necessary for the home construction; lots of them need to be evaluated independently.
Exclude from calculation the following: soft costs, that are the costs for plans, fees, permits, etc.
, land and landscaping, hardscaping and financing.
Include instead the costs for labor and materials cost for all the living space.
Then, add together all the costs to obtain a total dollars number.
Then, divide the total dollars by the square footage number.
As easy as that.
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