Valuation of land??
Discussion
I need some help from the collective wisdom of PH.
Is there a formula for calculating the cost of a piece of land? I am working on a rebuilding project at the moment and need to complete an options appraisal. As part of this I have to value our site at present, commercial use in residential area (not desirable postcode) so planning wouldn't be difficult to obtain for developments. I also need to get a rough valuation of the cost of buying land in a similar area.
I have visited some estate agents and none of them seem to be helpful unless I am waving a cheque book and a sign saying please take all the cash you want from me. As we don't actually want to sell anything just get a notional cost can anyone help or do I need to just find out how to pay?
Is there a formula for calculating the cost of a piece of land? I am working on a rebuilding project at the moment and need to complete an options appraisal. As part of this I have to value our site at present, commercial use in residential area (not desirable postcode) so planning wouldn't be difficult to obtain for developments. I also need to get a rough valuation of the cost of buying land in a similar area.
I have visited some estate agents and none of them seem to be helpful unless I am waving a cheque book and a sign saying please take all the cash you want from me. As we don't actually want to sell anything just get a notional cost can anyone help or do I need to just find out how to pay?
i'm not surprised the agents weren't interested, you're asking owt for nowt 
in any case, what you want is a surveyor, the agents aren't (on the whole) qualified.
spoken to a surveyor colleague, need more info i'm afraid
depends what you're valuing, what use classification is it where is it how big is it etc.
there are 5 methods of valuing commercial property and the method used for a block such as you seem to be describing is the comparable method.. so work out the comp rate per square foot, add/subtract the benefits/disadvantages and multiply by the total area to come up with the rent value.. I think this is what you're getting at
might be wide of the mark though
I should add that the above is roughly parroted from a conversation with my surveyor colleagues
in any case, what you want is a surveyor, the agents aren't (on the whole) qualified.spoken to a surveyor colleague, need more info i'm afraid
depends what you're valuing, what use classification is it where is it how big is it etc.
there are 5 methods of valuing commercial property and the method used for a block such as you seem to be describing is the comparable method.. so work out the comp rate per square foot, add/subtract the benefits/disadvantages and multiply by the total area to come up with the rent value.. I think this is what you're getting at
might be wide of the mark though I should add that the above is roughly parroted from a conversation with my surveyor colleagues
Edited by minimax on Thursday 11th September 16:14
minimax said:
i'm not surprised the agents weren't interested, you're asking owt for nowt in any case, what you want is a surveyor, the agents aren't (on the whole) qualified.
hang a moment and i'll see if I can get some help from a colleague
Bloomin 'eck, an estate agent talking sense! in any case, what you want is a surveyor, the agents aren't (on the whole) qualified.hang a moment and i'll see if I can get some help from a colleague
You do really require a surveyor, but depending upon what you need the valuation for will depend who would do it. (i.e. whether it needs to be done according to the RICS Valuation Standards or whether you require a residual appraisal)
johnnywb said:
minimax said:
i'm not surprised the agents weren't interested, you're asking owt for nowt in any case, what you want is a surveyor, the agents aren't (on the whole) qualified.
hang a moment and i'll see if I can get some help from a colleague
Bloomin 'eck, an estate agent talking sense! in any case, what you want is a surveyor, the agents aren't (on the whole) qualified.hang a moment and i'll see if I can get some help from a colleague
You do really require a surveyor, but depending upon what you need the valuation for will depend who would do it. (i.e. whether it needs to be done according to the RICS Valuation Standards or whether you require a residual appraisal)
i'm only a part time EA, I do all sorts of agency & finance related things in the current market, jack of all etc etc
my company is primarily a chartered surveyor firm though The valuation is so I can prove that not moving is the most cost effective option 
It makes sense that it is the cheapest when we own the site we wish to develop but needs maths to show this.
Cheers Minimax, I believe you are an exiled geordie so do those costs come down much for North East land? Specifically Hartlepool?
It makes sense that it is the cheapest when we own the site we wish to develop but needs maths to show this.
Cheers Minimax, I believe you are an exiled geordie so do those costs come down much for North East land? Specifically Hartlepool?
chris_w666 said:
The valuation is so I can prove that not moving is the most cost effective option
It makes sense that it is the cheapest when we own the site we wish to develop but needs maths to show this.
Cheers Minimax, I believe you are an exiled geordie so do those costs come down much for North East land? Specifically Hartlepool?
I am an exiled geordie It makes sense that it is the cheapest when we own the site we wish to develop but needs maths to show this.
Cheers Minimax, I believe you are an exiled geordie so do those costs come down much for North East land? Specifically Hartlepool?
costs do come down for the north east, let me check the estates gazette
minimax said:
chris_w666 said:
The valuation is so I can prove that not moving is the most cost effective option
It makes sense that it is the cheapest when we own the site we wish to develop but needs maths to show this.
Cheers Minimax, I believe you are an exiled geordie so do those costs come down much for North East land? Specifically Hartlepool?
I am an exiled geordie It makes sense that it is the cheapest when we own the site we wish to develop but needs maths to show this.
Cheers Minimax, I believe you are an exiled geordie so do those costs come down much for North East land? Specifically Hartlepool?
costs do come down for the north east, let me check the estates gazette
chris_w666 said:
The valuation is so I can prove that not moving is the most cost effective option
It makes sense that it is the cheapest when we own the site we wish to develop but needs maths to show this.
Cheers Minimax, I believe you are an exiled geordie so do those costs come down much for North East land? Specifically Hartlepool?
Ok, two methods by the sound of it;It makes sense that it is the cheapest when we own the site we wish to develop but needs maths to show this.
Cheers Minimax, I believe you are an exiled geordie so do those costs come down much for North East land? Specifically Hartlepool?
1. Find comparable sites and look at what they're selling for.
2. You would carry out a residual valuation or development appraisal, this basically looks at;
a) What you could develop on the site
b) How much it would cost to develop it
c) How much profits company would want from that development
e) What the finished development would be worth
This would leave you with the land value. (i.e. the difference between the market value of the finished development and the total development costs).
Minimax - it would indeed be the Red Book! (but if you needed a valuation in line with this, you would need a qualified valuation surveyor, who would charge more money, but it doesn't sound like you do.
Nothing at all similar in the local area have already looked. WE wish to build a youth centre that would cost roughly £1.5 million to build (Based on £1000 per square metre). This would fill the site we have.
As residential land value would not be huge, as the average house price in the immediate area is around £100,000, for a 2 or 3 bed semi.
Does this make any sense.
As residential land value would not be huge, as the average house price in the immediate area is around £100,000, for a 2 or 3 bed semi.
Does this make any sense.
Bumping to see if anyone else has ideas.
Hi,
The value of the land depends on a series of variables.
One major factor will be the contaminative state of the site, and the potential for passing on ongoing liabilities.
I would always suggest that you employ a specialist firm to undertake a Phased investigation which will allow you to decide whether you wish to proceed with development, sell on, or whatever.
Land value is what someone will pay, and if there's a liability issue that could be nothing.
The value of the land depends on a series of variables.
One major factor will be the contaminative state of the site, and the potential for passing on ongoing liabilities.
I would always suggest that you employ a specialist firm to undertake a Phased investigation which will allow you to decide whether you wish to proceed with development, sell on, or whatever.
Land value is what someone will pay, and if there's a liability issue that could be nothing.
johnnywb said:
Ok, two methods by the sound of it;
1. Find comparable sites and look at what they're selling for.
2. You would carry out a residual valuation or development appraisal, this basically looks at;
a) What you could develop on the site
b) How much it would cost to develop it
c) How much profits company would want from that development
e) What the finished development would be worth
This would leave you with the land value. (i.e. the difference between the market value of the finished development and the total development costs).
This is basically it in a nut-shell. 1. Find comparable sites and look at what they're selling for.
2. You would carry out a residual valuation or development appraisal, this basically looks at;
a) What you could develop on the site
b) How much it would cost to develop it
c) How much profits company would want from that development
e) What the finished development would be worth
This would leave you with the land value. (i.e. the difference between the market value of the finished development and the total development costs).
There are many-many variables.
I can e-mail you an excel template of a residual development appraisal if you like.
PM me.
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