Now that you have completed the Due Diligence and selected the potential site for development.
At this point, you have pertinent information uncovered in the due diligence stage that provides significant information about your development: legal, planning and existing conditions.
What we need to do next is to quantify your profit to assess the feasibility of your intended project by using recent, comparable sales data. By this we mean:
- Recent: within the last three months, and
- Comparable: the same type of development, within the immediate vicinity (same street if possible)
You may have to broaden the scope of your data. Just be aware that the further you go for comparable sales data, the less authoritative your data will be.
No matter how optimistic you may be about your project, you must think like a valuer. You need to substantiate and source all figures, and be conservative.