Case Study: Valuing Development Land in Willoughby, Langley

The below case study showcases the challenges of valuing development land in a dynamic market and the impact of using the developer’s valuation method to find the residual land value of development land in Willoughby. To learn more about the residual land value analysis and why it should be used to calculate the value of development land whenever possible, check out our article How To Calculate Development Land Value.

The Property

A parcel of land with medium density residential development potential in Langley’s Willoughby neighbourhood.

The Timeline

1. The owners were regularly receiving unsolicited offers with purchase prices ranging from $2,400,000 to $2,700,000.

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.

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 at $3,200,000

Note: This is a point-in-time case study and is not necessarily representative of today’s market value for all land types in Willoughby. If you would like up to date market information, please don’t hesitate to reach out.

Justin Mitchell

Personal Real Estate Corporation

Founding Partner
Residential Development Land
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