Subdivision: Using the LOTCOST | Cost Approach sheet

The LOTCOST | Cost Approach sheet in the Valuation Workbook for Subdivision Assets is a custom cost approach for subdivisions; it accommodates using the developers' budgeted costs, Marshall and Swift data, and Cost Comparables. 

This guide shows how to access and use the LOTCOST sheet. 



  1. Subscription Tier: Professional (with the Subdivision Add-on) or Enterprise
    • This is not included in the base Professional subscription and requires an add-on service. If you would like to discuss accessing the Subdivision Workbook and Report Template, please contact your Client Success Manager or to assist. 
  2. Subdivisions must be enabled by a Valcre administrator.
  3. Valcre Add-In version or higher
  4. Valcre Workbook version 1.4.25 or higher  
  5. A partially started (at minimum) Job in Valcre Online
  6. Set up the Valuation Workbook for Subdivision work


Table of Contents

How-to Guide

Step 1: Access the LOTCOST sheet by selecting LOTCOST from the navigation menu at the bottom or left side of the workbook. 

Step 2: Determine if you will use the developer’s budget by selecting Yes or No in the drop-down for Use Developer’s Budget.

Step 3: Determine if you will use Marshall & Swift by selecting Yes or No in the drop-down for Use Marshall & Swift.

Step 4: Select the appropriate field in the Cost Comparables drop-down by determining how many Cost Comparables you will use.

Note: Steps 2-4  will conditionally change the prepopulated text in the Cost Sources Lists 1 +2. 

These will appear as text links in the report that save the appraiser from customizing the text based on the methods they are using in the cost approach. As always, you can override these fields as necessary. 

Step 5: Select the appropriate option in the drop-down menu for Measure Cost Per.

Indicate whether you would like to analyze the developer's budget and direct & indirect cost conclusion on a Per Acre or Per Lot measurement.

Note: This changes the Cost/ $LOT column in the Developer’s Budget to COSTS $/ACRE and vice versa. It will also change how the Direct & Indirect Cost Conclusion table works. 

  • For example, if you select Lot, the conclusion will be based on cost per lot, and if you select Acre, then the conclusion will be based on cost per acre.  

Step 6: Select the appropriate selection in the drop-down for Lots.

Indicate if the cost approach will be based on Phase I lots, Phase II lots, total lots, or number of units. 

Step 7: Select the appropriate selection in the Site drop-down. 

Do you want the site to be based on Excess Land, Primary Land, Surplus Land, Usable Land, Unusable Land, or Total Land Area


Developer’s Budget

This table allows you to enter details regarding the Developer’s Budget. It is broken down into three subsections:

  1. Direct Costs
  2. Common Amenities
  3. Indirect Costs

Direct & Indirect  Costs

Step 1: Enter specific line items as applicable

Step 2: Enter the Contingency Percentages if applicable.


Common Amenities

The Common Amenities section is separated by preference, but the workbook is flexible. If you would like to include common amenities in the direct or indirect costs section, you can add them there and hide the common amenities section by highlighting the rows, right-clicking, and selecting hide.



Final Developers Cost 

The Final Developers Cost section will indicate the total Direct and Indirect Costs for the developer's budget.


Step 1: Select how you would like to round to the final developer's cost if applicable


Marshall and Swift

This optional table will allow you to use the Marshall and Swift analysis. 

Pro tip: The subdivision plat and/or plans can likely help determine linear feed or square feet for each component. 

Step 1: Enter relevant improvements and costs per unit. Many common improvement categories are pre-populated from the Subdivision Development Costs and Yard Improvements section of Marshall & Swift. 

Step 2: Enter the applicable multipliers.

Step 3: Enter a percentage for Indirect Costs.

Marshall and Swift will include many indirect costs, but not all of them. This space provides an allowance for the extra indirect costs that Marshall & Swift does not include.

Step 4: Enter a range for Indirect Low and Indirect High. These will show as text links in the report narrative. 


Direct & Indirect Cost Conclusion 

This table shows the Developer's Budget, the Marshall and Swift, Cost Comparables, and the Appraiser's Conclusion.


Pro tip: You can hide the columns if you don’t have any cost comparables. Do not delete any rows or columns, as this will cause errors in the workbook. 

Step 1: If applicable, enter the names for the cost comparables; this will help you track which ones you used.


Step 2: Select what you want to emphasize. The total cost will be calculated based on a combination of the emphasis choice and the measure cost per choice, such that the Cost/Lot or Cost Acre, as appropriate, in the Appriaser’s Conclusion will match what is emphasized. 


Cost Approach Conclusion

Step 1: Add Entrepreneurial Incentive - add the percentage and what you want it to apply to: Direct + Indirect + Land value or Total Direct + Indirect Cost.

Step 2: Enter the Incentive Low and Incentive High ranges. This will show as text links in the report narrative. 

Step 3: Enter Actual Age, Effective Age, Economic Life, and Depreciation values.

Step 4: Review Depreciated Replacement Costs

Note: This field is the difference between the Replacement Cost New and the Total Depreciation.

Step 5: Review the Fee Simple Site Value Opinion 

This field is populated using Land Value 1 by default.  

Step 6: Round to nearest for Indicated Value

Step 7: Select whether you want this to be an As-Is Value, Perspective Upon Completion, etc

Step 8: If applicable, unhide rows.

Step 8.2: If you have any adjustments, select the premise using the applicable drop-down selections.


Once you have completed this sheet, you can begin work in the DEVMETHOD sheet. 

For additional questions about using the LOTCOST sheet, please contact Valcre Support using the live chat feature in Valcre Online or Valcre Mobile.

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