Real Estate Management in Guildford Essay Example | Topics and Well Written Essays - 3000 words

Real Estate Management in Guildford - Essay Example (i) A development appraisal to predict developer’s profit for the completed scheme. Your appraisal should be prepared both in a conventional format and by using a spreadsheet. Briefly comment on the accuracy of both methods. (30 marks) (ii) Returns for developer and fund if the scheme is funded long term by (a) Profit erosion with priority yield (b) commercial mortgage and (c) forward sale. Comment on the advantages and disadvantages of each method for developer and fund. (30 marks) Realizing the lucrative earning potentiality of the clustered land and building at in Guildford B1 zone with a high commercial value of properties it is worth to invest for double fold profit with minimum risk factors. It has been observed that a mere investment of GBP 10, 000, 000 straightway get a yield of 62, 203,68 while having the face value of the property integral. A real estate appraisal is a service performed by a licensed appraiser, who develops an opinion of value based upon the highest and best use of real property estimated the price that may go in multiple of ten in next two years. The highest and best use by our recent client after an innovative beautification produces the highest value for the land. This use is based on four parts; physically possible to acquire through our installment facility, appropriate estimation without any hidden cost, legally free from any incumbent, and economically feasible. Also of importance is the definition of the type of value being developed having its high market value and quick sale value. It is important to distinguish between Market Value and price of the property in Guildford highly commercial zone of the residential site. Market value is its fluid concept, ever-changing into ascending order, while the price is a historical fact at the time of a transaction while acquiring the land.