Practical Understanding & Process

Question 1

What steps should a surveyor follow when preparing a development appraisal?

Answer 1

• Confirm scope of instruction and required basis of value.
• Gather data: plans, cost estimates, planning information, market evidence.
• Assess GDV using comparables and allowances for incentives.
• Calculate TDC using reliable cost data, fees, and contingency.
• Apply finance assumptions using S‑curve and rolled‑up interest.
• Determine developer’s profit and residual land value.
• Undertake sensitivity and scenario analysis.
• Prepare clear reporting with all assumptions stated.

Question 2

What should a surveyor consider when checking build costs?

Answer 2

• Whether the costs reflect current market rates.
• Whether BCIS indices or QS cost plans are up to date.
• Whether abnormal or site‑specific factors require adjustment.
• Whether VAT treatment is correctly applied.

Question 3

What should a surveyor consider when assessing GDV?

Answer 3

• Quality and relevance of comparable evidence.
• Incentives, void periods, and marketing lead‑in times.
• Market sentiment and forecast yield trends.
• Suitability of the scheme for local demand.