The Appraisal Explained…

Please note that in the initial stage of choosing a development opportunity to proceed with, each proposal has already undergone a pre-appraisal. This means estimated calculations have been made, local area research has already been gathered and verbal valuations have been collected from local agents and online. However sections 2-4 in our services are all vital procedures of a unique in depth full-appraisal that is crucial in making the correct decision to proceed. This is an appraisal looked at from the standpoint of a surveyor, an estate agent and a developer.

The reason for making an initial offer on the site is that only when an offer is made, and the site of interest is taken off of the open market, it creates a time window for LUXE to carry out the full-appraisal. This includes aspects like ensuring all infrastructure and utilities are reachable, local up to date sales and rental figures are accumulated, thorough area research is compiled, exact construction costings are determined and the approved planning scheme and decision reports are examined in full detail. LUXE also make contact with the local authority regarding any existing planning schemes the site has obtained in the past and research the history of the site in order to look at potentially raising the value by enhancing the planning scheme. If appointed to do so LUXE and our associate architects will be responsible for attempting to secure, on behalf of the client, an enhanced planning permission and will procure that a detailed, enhanced, planning application is submitted to the local planning authority as soon as reasonably practicable.

LUXE will work on an hourly rate to conduct this full appraisal, then invoice the client direct on a weekly basis. The length of time for an appraisal will vary from one site to another, this is why for the full-appraisal, and other services in between making an offer and purchasing the site, TLD work on an hourly basis. A set fee can be discussed however we feel an hourly rate makes our clients money work more efficiently for them. Additionally, the fundamentals calculated in the full-appraisal, in most cases tend to work out slightly less than that of the initial proposal, on the grounds that TLD over allow on build costs and lending rates as it is believed that over achieving is finer than under achieving. Which is again why we also deduct all of our clients paid invoices to date from the acquisition fee.

The most important benefit of the appraisal is that the client will be able to determine profit margins for the project, and compare them against capital outlay and timescales. This enables the client to make a confident decision on whether or not this really is the project they wish to move forward with.