Challenges Of Knowing Your True Value

Challenges you say? This business is filled with challenges around every corner. Here are some things you really need to look out for and think about before you start any kind of action. And remember-most importantly- before you start any action-you need a plan of action.

When you are looking at developing land there are a couple of different stages you need to think about in your action plan. Maybe you are looking at land, or maybe you are looking at developing a project that has additional building units you could put in. Selling it at this point is a new stage. This is what I call the purse stage. You sell it without any engineering or any plans whatsoever. You’re thinking to yourself-I have this piece of land and I want to sell it! Of course you do! And you can do with it what you want. But what is this really going to do for you? I’ll tell you what - you’ll get-the lowest return. That’s right. You heard me correctly.

Sure-its money in your pocket. But is it the true value? Maybe you are at the next stage. You sort of know the value but think you could increase it a little. You have an idea and you might even go to an architect or engineer. You might even go far enough to have him sketch out something preliminary based on property lines. And let’s take it a step further. You feel so good about this you run it by the zoning department or planning department. And guess what-they tell you it is possible, and that from an informal stand point-it shouldn’t be a problem. Think you’re going to get an approval-think again.

What it really boils down to is what you put into it. When you give 110% and have a formalized site plan, things will really take off. You have spent the money to get the engineering done, and now it’s on to the permit applications. This is when you truly will start putting the value of worth into your land. At the end of the day, when you finally get approvals and you are ready for your permits and I’m not talking just zoning permits-I’m talking building permits-you can see you true value. Think about it-when you’re about to break ground is when the dirt is the most valuable, and when your true value is plain as day. Don’t let you true value be clouded and make sure your plan of action is just that-a plan!