Subdivision Analysis

 

Subdivisions can be analyzed as "paper lots" or lots that have been created via conceptual plans or with basic surveying / engineering where nothing having been done to the land.  They can also be analyzed as partially finished with some improvements in place, "upon completion" given a prospective completion date with the assumption that utilities, roads and off-sites are in place or finally that could be analyzed in their finished state.

 

Appraisers often analyze subdivisions by completing research on individual lots for comparison to the lots being appraised and then summing the lots, however the sale of similar subdivisions within the market area can also be used for comparison.  

 

The value of a subdivision has a lot to do with the absorption of lots into the local market, which in turn depends on the supply and demand for lots.  A subdivision in one high demand area may sell out in 3 months, while a subdivision in another area with the same number of lots may take 3 years to sell out. The sales approach, subdivision analysis and allocation are all methods considered in an appraisal of lots.  

 

Lots, like the subdivision itself, are usually targeted to a specific group.  Small lots can typically support only small building improvements, while large lots in a subdivision designed with many amenities (like guard gated access, golf course frontage and manicured common areas) are targeted to high-end / luxury residences.

 

In an appraisers highest and best use analysis they typically consider the potential that the appraised property has for sale in parcels or as a subdivision.    

 

Contact us with your questions or concerns regarding Las Vegas subdivisions or regarding your specific appraisal assignment in Nevada at 1-702-568-6699.  We can also be e-mailed at grigdon@cox.net.  

 


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Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.