LAND PRICING
Price per acre
Divide the total price by the acreage to compare tracts on a single number, and get the price per square foot from the same inputs. Say whether the acreage is gross or net every time you quote it.
THE MATH
How it's calculated
Price per acre = total price ÷ acres. Price per square foot = total price ÷ (acres × 43,560).
WORKED EXAMPLE
Given: $480,000 for 12 acres
Result: $480,000 ÷ 12 = $40,000 per acre, which is $0.92 per square foot
QUESTIONS
Price per acre calculator questions
Gross acres or net acres?
Run both and label which you mean. Gross acres price the deal; net usable acres, after right-of-way, detention and floodplain, price the yield. A tract with 30% unusable ground costs far more per buildable acre than its headline number suggests.
How does price per acre relate to price per lot?
Divide the tract price by the lot count the plan actually yields. Two tracts at the same price per acre can be a long way apart per lot once density, right-of-way and topography are in the model.
Why do some brokers quote per square foot?
Commercial and infill parcels are small enough that per-acre numbers get coarse, so they trade per square foot. Farm and development ground trades per acre. It is the same math with a different divisor.
Does the number include improvements?
Only if you say so. Raw ground, entitled ground and finished lots are three different products. Comparing them on one price-per-acre line is how a deal gets mispriced.
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