The average cost per square foot in a neighborhood can help buyers determine if a home sale price is high or low, Realtor.com reports.
Typically, a home's cost for a square foot is prominently featured on the listing—both online as well as in those property information sheets you get at an open house. But a home's price by the square foot doesn't tell you much on its own. This number is best understood in comparison with similar homes in the surrounding market.
According to the latest estimates, the median price for each square foot for a home in the United States is $123. But that can vary widely based on where you live and other factors.
When you run your comparison of a home's cost per square foot with the neighborhood median, you can use that information to help you determine whether a place is a bargain or overpriced.