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Questions and Answers
What is the primary purpose of the residual valuation method?
What is the primary purpose of the residual valuation method?
What is the term for the estimated value of a property after planned improvements or construction are completed?
What is the term for the estimated value of a property after planned improvements or construction are completed?
What is the total market value of a property once it has been fully developed or improved?
What is the total market value of a property once it has been fully developed or improved?
What is the value of a piece of land after accounting for the costs of developing it and the profit required by the developer?
What is the value of a piece of land after accounting for the costs of developing it and the profit required by the developer?
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What is the main difference between Gross Development Value (GDV) and Residual Site Value?
What is the main difference between Gross Development Value (GDV) and Residual Site Value?
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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.
