Direct comparison is the primary method of valuation when assessing the valuation of a development, however quite frequently a Hypothetical Basis of Valuation is often utilised.
This method of valuation is a useful secondary method in feasibility studies. The 'As Is' value of a property is calculated by assessing the gross proceeds generated by the development and subtracting all costs including development costs, taxation implications, borrowing costs, purchase and selling costs, profit and risk factors, etc.
The resultant figure is the net value of the property prior to development.
McLean Gladstone has carried out many development valuations and has an excellent knowledge of all matters that need to be addressed to provide a reliable and accurate valuation of a property.