In the hectic industry of land development and investment, accuracy is everything. One small mistake or oversight can mean costly mistakes, missed opportunities, or bad financial decisions. That's why the method of valuation you choose peer review or automated valuation is essential to the potential success of your land deal.
At Developers Research, we have extensive experience providing end-to-end, peer review services for complex land development projects across the U.S. for decades. In this blog, you will get a snapshot of the differences between peer reviews or automated valuation models (AVMS) and the benefits of an expert-led valuation approach when pursuing high-value, complex land deals.
A peer review is a practical review process involving in-depth review of a land development financing, scope and cost structure by seasoned professionals.
It includes:
At Developers Research, we ensure our peer reviews are appropriate for the specific challenges presented by the project. We combine our technological and marketing backgrounds with industry expertise to provide valuable insights, not just descriptions.
Automated Valuation Models use an algorithm and data from property records, zoning, comparable sales, and other data to develop property values. These are typically used for residential real estate as a speedier, low-cost assessment.
In land development, where each parcel comes with its own set of risks, relying solely on automation can be risky.
With land acquisition, entitlement, and development, peer reviews are worthwhile for the following reasons:
Experienced industry professionals can evaluate inconsistencies, trends in the marketplace, and project-specific risks. We will evaluate whether a budget reflects the real costs of permits, site preparation, installing utilities, etc.
We are able to uncover probable budget overages, faulty assumptions, and red flags regarding entitlements. By exposing these concerns early, developers can reevaluate their path before making costly decisions.
Developers Research provides our clients with specific Excel models, contractor bids analysis, and residual land value analysis on a case-by-case basis.
Peer-reviewed documents have credibility and transparency for lenders and financial partners. When a budget or a project has verified expert review, investors are more willing to support the project.
When Is an AVM Still Useful?
Automated valuations can be useful for preliminary assessments or smaller residential portfolios where site-specific complexity is minimal. They're best used as a starting point, not a decision-making tool for large-scale development.
In land development, informed decisions come from accurate insights not just quick estimates. At Developers Research, our peer review services help you manage budgets, reduce risk, and invest with confidence.
Planning your next project? Contact us to see how our expert analysis can support your success.