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DEVELOPMENT COST APPROACH GRID <br /> • In review, the assumptions made are: <br /> 1. 34 acres of raw land <br />!is 2. The number of platted lots would be 13 <br /> 3 . 5% selling fee, based on gross sales <br />!II <br /> 4. 15% profit to the developer <br /> 5. Improvement costs, $604,700 <br /> 6. Legal, account and advertising, $1,000 per year <br /> 7. Real estate taxes, $200 for years 1 thru 3, $3,729 <br /> year 4 and $932 year 5 <br /> 8. 5 year absorption period, 3 lots each of first 4 years, <br /> 1 lot in year 5 <br /> 9. Average selling price of lots $83,897 <br /> 10. A 10.5% return rate on invested money <br /> • <br /> 30 <br />