Subdivision Valuation Second Edition
Added material covers: (1) Cost approach example for Gator Pond (Exhibits 8.17–8.18) showing an indicated cost‑approach value by lot and land allocations for phases; (2) Sales Comparison Approach (Chapter 9) applied to Mill Pond with comparable bulk sales, resulting bulk sale indications and a final reconciliation (when‑complete bulk value $2,375,000; current as‑is vacant land $1,060,000); (3) Yield and profit extraction (Chapter 10) using the Madison Square case study — detailed DCFs produce a true IRR of 22.922% (time‑zero) and 27.182% (entitlement‑point), total dollar profit $589,236, bulk sale $1,650,000, and examples showing how to allocate profit by phase and convert between true IRR and matched pair (line‑item profit) approaches; (4) Land valuation by subdivision development (Chapter 11) with Park View case study producing a most‑likely as‑is land value of $950,000 (range $890k–$1,010k) across density scenarios; and (5) Special topics (Chapter 12) including common appraisal deficiencies, profit vs. time considerations, and the Time‑Zero Profit Dilemma with the Serenola Hills multi‑scenario sensitivity matrix (Scenarios 1–6) illustrating how presales and short holding periods can materially change indicated bulk values and profit extraction methods.
Questions this document answers
$6,187,000 (indicated value by cost approach; indicated per lot ≈ $58,400)
$2,375,000 (final reconciled when‑complete market value, equal weight to three approaches)
$1,060,000 (current vacant land value, as‑is date)
Time‑zero IRR ≈ 22.922%; entitlement‑point IRR ≈ 27.182% (both with zero line‑item profit)
Total dollar profit $589,236; historical bulk sale price $1,650,000 (60 lots)