This popular text explains the traditional analysis of undeveloped acreage and examines new methodology for the valuation of proposed and completed subdivision projects. It also describes the requisite market analysis that appraisers undertake before systematically applying the subdivision analysis method and introduces modifications that can be made to reflect the current market.
Because buyers and developers of subdivided property are keenly interested in the timing of a project’s cash receipts and disbursements, Subdivision Analysis presents financial modeling techniques in a comprehensive case study. The case study demonstrates the valuation of both vacant land and a partially completed project. Various assumptions concerning costs, sales, and entrepreneurial profit are incorporated into the analysis to illustrate the flexibility and broad applicability of the methodology.
About the Authors
Douglas D. Lovell, MAI, has broad experience in the public and private sectors as an appraiser, loan workout specialist, and educator. He has prepared and presented educational programs on commercial loan underwriting, financial analysis of savings and loans, loan management, appraisal policies, real estate decision making, and federal loan requirements. His articles have appeared in a variety of real estate and financial publications.
Robert S. Martin, MAI, SRA, CRE, is a real estate appraiser in Winston-Salem, North Carolina. Educated at Duke University and the Emory University Graduate School of Business Administration. Mr. Martin has been a course and seminar developer for the Appraisal Institute.
