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Permitted Vs As Is Land Value Calculator
Permits add quantifiable, transferable value to land.
Net uplift value
$3,650,000
Permitted land value
$9,000,000
Gross uplift
$4,500,000
How the math works
Permitted = units × value/unit. Gross = permitted − as-is. Net = gross − permit cost.
120 units × $75k = $9M permitted. $9M − $4.5M = $4.5M gross − $850k = $3.65M net uplift.
How to Use
- Enter as-is land value.
- Enter approved unit count.
- Enter land value per permitted unit.
- Enter permit cost incurred.
- Read permitted land value and uplift.
Frequently Asked Questions
What does 'permitted' mean?
Beyond entitlement, 'permitted' means building permit is issued for a specific construction plan. Permits are property-appurtenant (attached to the land) and usually transferable for 6-18 months. Permitted land commands premium over entitled land because (1) buyer saves 12-18 months and 3-7% of cost avoiding permit process, (2) certainty of project parameters, (3) lender will lend at permitted stage but not entitled. Typical premium: 10-25% of total project cost.
Approval vs permit?
Zoning approval: right to build under certain conditions. Permit: government-issued authorization to actually build. Permit typically needs zoning approval + site plan review + building code compliance + environmental compliance + utility commitments + fire/life safety approval. Each gate can drop the project. Even entitled land with conceptual approvals can fail at permit stage 10-25% of the time due to code issues, fire access, or utility denial.
How do you value permit credits?
Market comp method: look at recent transfers of permitted vs entitled vs raw land in same submarket. Typical ratios: entitled = 1.3-1.8x raw, permitted = 1.8-2.5x raw. Or DCF method: discounted expected project cash flows by pre-permit vs post-permit discount rate (saves 300-600 bps). Or cost method: as-is + achievable uplift − discount for risk and time remaining. All three should converge within 10-15%.
Does permit expire?
Yes. Typical permit life: 12 months from issuance, with 6-12 month extensions available if construction commences or substantial progress shown. Can be extended indefinitely in some jurisdictions (CA 'state-mandated' extensions common). Permit can be revoked for non-use. Institutional sponsors track permit expiration monthly to prevent costly re-permitting. A lapsed permit often requires re-submission under current (more stringent) code — 20-50% additional cost possible.
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