Most landowners value their property based on "comps." Developers value it based on a "pro-forma." Understanding the difference is how you capture the full equity in your land.
The Math of Development
Residual Land Value (RLV) is the primary equation used by every sophisticated builder in the Pacific Northwest. It is not about what the neighbor sold for; it is about what the final product will sell for, minus every cost required to get there.
— Construction Costs
— Soft Costs & Fees
— Developer Profit Margin
= RESIDUAL LAND VALUE
Why Technical Data Matters
A builder will always assume the worst-case scenario if the data is missing. If they don't know the exact sewer depth, they budget for a pump system. If they don't know the soil compaction, they budget for expensive footings.
Our role at Stake & Charter is to "Charter the Risk." By providing technical due diligence upfront, we remove the builder's need for contingency fluff, shifting those dollars directly back into your pocket.
Profit Compression
Builders typically target 15-20% pretax profit. We negotiate for lower risk-premiums.
Cost Certainty
Pre-vetted site data can swing a land offer by $50k-$200k in a developer's pro-forma.
Know Your Numbers
Don't leave your equity to a builder's guesswork. Request a technical pro-forma for your land.