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Defining “dollars per square foot”

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Many different people will use the term dollars per square foot throughout your home-building process. Interestingly enough, however, no one uses a specific widely accepted definition. A real-estate agent may state dollars per square foot as the sales price of the home divided by the square footage, including the land. A contractor may or may not include items such as permits or financing in their estimates of dollars per square foot. After you have bids, the term actually becomes meaningless, but during the early stages of your project, you need a common understanding of what it means.

To decipher your dollars-per-square-foot quotes, you have to define dollars and square foot the same way for each person you work with. Then you can make sure everyone is on the same page in every relevant conversation. The following sections outline one helpful approach to try.

Building Your Custom Home For Dummies

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