Course Information

The seminar is designed to explain the principles of the private sector development viability and land valuation techniques for speculative housing schemes.

Delegates will learn the process of appraising schemes, the various stages of getting from the start to making an offer, and how to use residual land and profit valuation techniques in order to maximize land value and/or profit. Dealing with affordable housing and how it impacts on value will also be explained.

Examples will be given using the SDS Landval application, but familiarity with this application is not required.

Pre-requisites

No prior experience of the private sector is required, nor of the SDS Landval application. Delegates will not use computers.

Course Objectives

By the end of the course delegates will be able to:

• Understand the way private sector developers approach land valuation
• Understand the nature of risk and profit in private development
• Appreciate the processes and techniques used to arrive at land offers
• Understand the techniques used to optimise land value and profit
• Understand the impact on an appraisal of affordable housing
• Appreciate the sensitivity nature of appraisals and the' gearing trap'
• Understand the differences between options and contracts
• Learn the process of making offers

Agenda:

• Introduction
• Developers and Builders - They're different
• Risks and Profit
• The steps in an appraisal process
• Analyzing the market and establishing sales prices
• Arriving at a land value
• Optimising mix
• Gearing and sensitivity
• Affordable housing considerations
• Contracts and Options
• Making Offers