The appraisal of Subdivisions involves the evaluation of an income stream, which is different than most vacant land. It further requires the appraiser’s understanding of Subdivision plat maps, showing all lots and improvements to be developed. The cost of all improvements including utilities, roads, etc. must be estimated. Typically, an absorption study is required to determine how long it will take to market all of the lots and at what price. Finally, a discounted cash flow income stream is developed which is used to place a value on the property. Only appraisers with a good understanding of the income approach and discounted cash flow should attempt to appraise a Subdivision. Subdivision appraisals are typically in most demand when there is a hot market for new construction homes and commercial properties.
Subdivision appraisals are available through our company anywhere in the United States. We will require a complete engineer’s development plan, along with specifications and any marketing plans which are available.