1. What is Price Per Acre?

Price Per Acre (PPA) is a standard measurement used in real estate to compare the value of land parcels of different sizes. It represents the cost of one acre of land based on the total sale price and property size.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Sale\ Price \) — Total price paid for the property (in currency)
• \( Property\ Size \) — Total land area in acres

Explanation: This calculation standardizes land prices to a per-acre basis, allowing for direct comparison between properties of different sizes.

3. Importance of PPA Calculation

Details: Calculating price per acre helps buyers and sellers determine fair market value, compare different properties, and make informed investment decisions in agricultural, commercial, and residential real estate.

4. Using the Calculator

Tips: Enter the total sale price and property size in acres. Both values must be positive numbers. The calculator will compute the standardized price per acre.

5. Frequently Asked Questions (FAQ)

Q1: Why calculate price per acre instead of just total price?
A: Price per acre allows for direct comparison between properties of different sizes, helping identify better value propositions.

Q2: What's a typical price per acre for farmland?
A: This varies widely by location, quality of land, and market conditions, ranging from $1,000 to $15,000+ per acre in different regions.

Q3: How does property shape affect price per acre?
A: Irregularly shaped parcels may have lower utility and thus lower price per acre compared to rectangular parcels of the same size.

Q4: Should I use acres or square feet?
A: For large land parcels, acres are standard. For smaller residential lots, price per square foot may be more appropriate.

Q5: Does this include buildings or improvements?
A: This calculation includes everything in the sale price. For pure land value comparisons, subtract the value of improvements first.