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# Real Estate Valuation Methods

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### What is the primary purpose of the residual valuation method?

To estimate the value of a property after all costs and expenses are deducted

### What is the term for the estimated value of a property after planned improvements or construction are completed?

Development Value

### What is the total market value of a property once it has been fully developed or improved?

Gross Development Value (GDV)

### What is the value of a piece of land after accounting for the costs of developing it and the profit required by the developer?

<p>Residual Site Value</p> Signup and view all the answers

### What is the main difference between Gross Development Value (GDV) and Residual Site Value?

<p>GDV is the value of the developed property, while Residual Site Value is the value of the land</p> Signup and view all the answers

## Study Notes

### Residual Valuation

• Residual valuation is a method of calculating the value of a property by considering its expected value after all costs and expenses are deducted.
• It involves finding out how much a property is worth after paying for everything needed to develop or maintain it.

### Development Value

• Development value is the estimated value of a property after planned improvements or construction are completed.
• It represents the value of a property once it has been fully developed or renovated.

### Gross Development Value (GDV)

• Gross Development Value (GDV) is the total market value of a property once it has been fully developed or improved.
• It represents the total amount of money that can be sold for the developed property.

### Residual Site Value

• Residual Site Value is the value of a piece of land after accounting for the costs of developing it and the profit required by the developer.
• It represents how much a piece of land is worth after subtracting the costs to build on it and the developer's profit.

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## Description

Learn about residual valuation and development value, two key methods used to calculate the value of a property. Understand how to estimate the worth of a property after development and construction.

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