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Land Development Model, An Appraisal and Valuation Tool

This is a powerful, easy to use and inexpensive land development model. It is the result of an effort to create a model that:

1). Estimates the profitability of 'single and multi-phase' land subdivisions at once;

2). Extends analysis beyond 'gross profit' to 'profit before tax', resulting in an interest cost calculation based on the cumulative effect of many land development components; 

3). Allows for quick and easy 'what-if' analysis on all land development components above and below the gross profit level.

4). Can be used to estimate, support or extract land value.

5). Can be used to develop 'pro forma' financial statements.

The "Snip-It" below is illustrative of 8 of the Input Page entry cells from Versions 1, 2 and 3. The current version 4 includes new entry cells for frontage lots and subdivision lots and removes the page links in red below. Navigation is now by tabs at the bottom of all model pages.

The land development model requires Excel to run and is delivered over the internet at the time of purchase.

Price  $95.00

Structure of model 

  • Analysis of up to three phases in one step;
  • Project duration up to ten years;
  • Excel functionality (save-as, print, passwords);
  • Development components entered on a single input page;
  • Output pages generated simultaneously with input;
  • Links to and from all model pages; 
  • Profitability measures visible on input page;
  • Model Consistency section;
  • Includes take off page for pre-model entry.

    What you can do with the model

  • Analyze single and multi-phase subdivisions;
  • What-if analysis on all development components;
  • Analyze effect of absorption on profitability;
  • Evaluate and estimate option value;
  • Make phasing decisions;
  • Estimate profit by year, phase, and project;
  • Estimate interest cost by year, phase, and project;
  • Estimate land value based on target profit ratio;
  • Generate, save, and print profit tables;
  • Generate, save, and print cash flow tables;
  • Generate, save, and print lot sale schedules;
  • Analyze effect of seller financing on profit;
  • Analyze effect of seller financing on equity-in;
  • Analyze effect of builder deposits on profit;
  • Insert historical project information to model;
  • (NEW) Recognize both subdivision lots & frontage lots;
  • Extract rates and ratios from the market;
  • Recognize timeline concept of development process;
  • Evaluate the effect of interest rate trends;
  • Demonstrate concept of leverage;
  • Demonstrate concept of time value of money;
  • Save project scenarios under unique filenames;
  • Analyze profit before tax;
  • Estimate return on equity;
  • Create profit tables under multiple scenarios;
  • Conduct cost/benefit analysis;
  • Develop pro forma financial statements;
  • AND more ....

  • The land development model allows for one-step analysis of subdivisions with one, two, and three phases; or analysis of an unlimited number of phases one phase at a time.

    Given the model's capacity for simple 'what-if' analysis over the full spectrum of land development components, combined with its user-friendly excel functionality, any number of related project scenarios and associated model results may easily be  produced, compared, and saved under distinct filenames in a matter of minutes.

    Additionally, the LDM comes with an accompanying file that provides for Side-By-Side comparison of a  single project under up to six component combination scenarios (e.g. 1 phase vs 2 phase, with and without builder deposits, with or without seller financing, with or without residual land, etc.) or Side-By-Side comparison of up to six separate and distinct projects.

    The land development model may be used by real estate appraisers, developers, builders, real estate agents, lenders,  instructors or anyone having an interest in the subdivision process. A little real estate knowledge will be helpful but is certainly not necessary. A novice can work with this model. Once you work your way through the Input Page two or three times you will have it --- besides, in addition to a Model Consistency section, there is a "directing" and "correcting" prompt column that keeps you on track.

    The model was recently upgraded to include an intuitive data entry sequence by clicking on excel's 'Name Box' feature. Additionally, labeling and descriptions on the Input Page have been modified to align the model to the three stage land subdivision process.  


    The LDM is delivered with sample input and output for a 3 phase project. You may want to save this file under a name of your choice  for future reference before clearing the input. Additionally, a  sample land development project is incorporated to the website.  It demonstrates first the input of land development  components and second the significant output capacity of the model

    Note that the land development model is not intended to be a several hundred or multi thousand dollar software package, nor is it purported to be a substitute for such products. But unless you are in the business on a daily basis the cost of some products can be prohibitive - not to mention the steep learning curve that often comes with more sophisticated products. We think
    even the most experienced practitioners will find this model useful.

    This model is straightforward, fast-working and inexpensive - and completely refundable if you are not satisfied with the product. Look again at what you can do with the model.  

    Price  $95.00


    If you wish to ask us a question about the model, 'Contact Us' and we will get back to you as soon as possible.

    Land Development Model, LLC
    302 West Lafayette Road
    Medina, OH 44256