DEVELOPMENT GUIDE
Land Development Appraisal Guide
Land development appraisal phases acquisition, infrastructure, plot delivery, sales and debt repayment.
In this guideWhat the analysis measuresCalculation frameworkUnderwriting reviewHow to use the result
What the analysis measures
Map gross site area, net developable area, plots, density, infrastructure and phasing. Revenue should follow deliverable product, not headline acreage.
Calculation framework
Separate site purchase, entitlement, roads, utilities, public works, fees, contingency, finance and selling costs.
Underwriting review
Forecast absorption and sales proceeds by phase. Link lender repayment to sales and reconcile plots sold plus residual inventory to total plots.
How to use the result
Use residual land value, peak debt, equity requirement, development profit, IRR and sensitivity to sales price and infrastructure cost.