EveryCalc

Finance category

Mortgage, loan, investing, tax, and money calculators.

Browse finance

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

  1. Enter as-is land value.
  2. Enter approved unit count.
  3. Enter land value per permitted unit.
  4. Enter permit cost incurred.
  5. 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.

Related Calculators

More Finance Calculators

Browse all finance

Keep exploring

Next steps in Finance

View finance hub →