Category: Subdivision Analysis

Subdivision Analysis

A method of estimating land value when subdivision development is the highest and best use of the parcel of land being appraised.  When all direct and indirect costs, and entrepreneurial incentive are deducted from the estimate of the anticipated gross sales price of the finished lots, the resultant net sales proceeds are then discounted to present value at a market-derived rate over the development and absorption period to indicate the value of the raw land.

(Dictionary of Real Estate Appraisal, 4th edition.)

Translate »