Value Thru Dcf - As Is Or As Complete?

[Howard Klahr]

The value by the DCF is an "as completed" value if the appraiser begins with vacant land, unimproved land that is to be developed with the infrastructure of a subdivision

Are the infrastructure costs associated with development of the subdivision included in your dcf analysis? If so why would the result not reflect the "as is" value of the "as is" undeveloped land?

Is DCF an "As Is" value or an "As Complete" value

Like Denis said, the use of a dcf is not the determinant of "as is" nor "as comple" but rather is just a tool used in the process. The timeline is just a spectrum and what the results are will be determined based on the start and end points on the timeline

 

[Pittsburgh Pete]

Went out last Monday and looked at an undeveloped plot of land that is to be developed with infrastructure to sell lots for patio homes. The bank gets an "as is" value (i.e. the undeveloped land that I viewed on Monday) and an "as completed" value (i.e. the value when all the roads and infrastructure are in place and they are ready to start peddling lots to builders). the latter value is the present value of the net cash flows from the sale of lots.