Case Study: Valuing Development Land in Burquitlam, Coquitlam
The process of valuing development land can pose its own set of challenges, especially in a dynamic market like Burquitlam. To learn more about the valuation process and the two main methods of determining land value, check out our article How To Calculate Development Land Value. Below is a case study showcasing the benefits of using the residual land value analysis over the comparable analysis method to find the value of development land in Burquitlam.
A property assembly with short-term development potential, located near Burquitam Station.
1. Over the course of a few months, potential buyers had submitted unsolicited offers to the property owners with purchase prices ranging from $250 to $275 per square foot.
2. The owners considered selling but were unsure if the offers were maximizing their property’s value.
3. They engaged the development land Realtors at Frontline Real Estate Services Ltd.
4. We assessed the value of the property by running a development proforma and reviewing comparable sales.
The unsolicited offers received by the property owners were consistent with recent comparable sales but fell short of the residual land value – a common scenario.
5. The owners listed the property with Frontline Real Estate Services Ltd.
6. Leveraging the residual land value valuation method and our unique marketing process we created a competitive environment and secured multiple offers.
The property sold for $313 per square foot.
Note: This is a point-in-time case study and is not necessarily representative of today’s market value for all land types in Burquitlam. If you would like up to date market information, please don’t hesitate to reach out.