Valuing land is a complicated process that needs to be undertaken by a qualified professional. The industry unfortunately is often skewed by landowners being presented with unrealistic offers from non credible parties. Just because you get an offer it doesn’t mean that is what your site is actually worth! We value land by undertaking a detailed residual valuation. Put simply this comprises the following;
- A planning appraisal to evaluate what the scale and use of the new building we believe can be redeveloped on your site will be.
- We then work out what the value of this anticipated new building would be when fully built ie what all the flats would collectively sell for (otherwise known as the Gross Development Value).
- Once all costs which are incurred in the development process plus a developers margin are allowed for the remaining capital ‘the residual’ is the land price the developer can offer to pay you for your site.
Please see our blog post which goes into more detail.