Case Study: Valuing Development Land in South Surrey
Below you will find a case study that emphasizes the difference between the two most common methods for valuing development land as well as the benefits of using the residual land value analysis to find the value of development land in South Surrey. Check out our article How To Calculate Development Land Value to learn more about the residual land value analysis and why it should be used to calculate the value of development land whenever possible.
The Property
A parcel of land with immediate development potential in South Surrey’s Grandview neighbourhood.
The Timeline
1. The owners were regularly receiving unsolicited offers with purchase prices ranging from $2,200,000 to $2,600,000.
2. They considered selling but were unsure of 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.
As you can see, the unsolicited offers the owners were receiving were strong offers relative to the comparable sales but came up short of the residual land value.
5. The owners listed the property with Frontline Real Estate Services Ltd. for $3,200,000.
6. We ran our unique marketing process, created a competitive environment, and secured multiple offers for the property.
The Result
The property sold for above list price.
Note: This is a point-in-time case study and is not necessarily representative of today’s market value for all land types in South Surrey. If you would like up to date market information, please don’t hesitate to reach out.
