What is a unit of comparison applicable to single-family residential property?

The choice of price per square foot of gross living area is commonly used as a unit of comparison for single-family residential properties. This measure provides a standardized way to evaluate and compare the value of different properties based on their size, as it relates directly to the living space available in each home. By assessing the price in terms of the square footage, buyers and appraisers can identify trends in the market and make more informed decisions.

Using price per square foot accounts for variations in home size while allowing for a more equitable comparison among properties, regardless of their unique attributes. This is particularly important in real estate, where homes may differ significantly in layout, construction style, and location. In contrast, the other options present challenges for providing a consistent comparison across diverse single-family homes.

For example, price per acre can be more applicable to larger properties, such as farms or rural locations, and may not accurately reflect the values of typical residential homes situated on small, urban lots. Price per bedroom may not effectively represent the overall value since it doesn't consider the total size or livability of the space. Total property price, while providing the final sale figure, does not convey the property’s value relative to its size and is less useful for comparison purposes. Therefore, price