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