Subdivision Development: Risk, Profit, And Developer Surveys‪.‬

abstract This research paper addresses some of the critical aspects of subdivision development that have not been fully explored by the appraisal profession. Subdivision is a dynamic and complex process, and carries many risks, both anticipated and unanticipated. The risks associated with subdivision development, which have an impact on the expectation of developer's profit, are often understated or not fully accounted for within the valuation process. Developers often employ land contracts as an effective means of reducing subdivision risk and enhancing the potential for profit.