How to quickly appraise a development project
Introduction
This tutorial covers the development Appraisal tool in BOOM!, focusing on how to create, edit, and utilise Appraisal effectively for project analysis, cost estimation, and collaboration.
Key Features of Appraisal
Create a new Appraisal
Access via the top toolbar.
Select “Create New” > “Appraisal”.
Choose a country (e.g., England) as Use Class classifications vary by region.
Start options:
From Scratch: Define Use Classes manually.
Clone an Existing Appraisal: Copy a prior Appraisal template.
GDV and Accommodation Schedule
Input the Gross Development Value (GDV) through an accommodation schedule.
Adjust Use Classes or add new ones as needed.
Detailed Cost Components
Planning Costs
Includes:
Option fees.
Legal costs (landowner and developer).
Planning application and consultant fees.
Development contributions (e.g., Section 106 fees).
Building Works
Choose between:
Square Meter Appraisal: Broad estimates.
Detailed Appraisal: Drill into granular details.
Components:
Building work and external work.
Preliminaries.
Contractors overheads and profit.
Consultants and contingencies.
Disposal Costs
Estate agent fees.
Legal and marketing costs.
Finance and Strike Price
Input:
Land acquisition costs, including sourcing fees and taxes.
Development finance (equity, loan-to-GDV ratios, interest rates).
Strike Price Analysis:
Determine the maximum offer price based on GDV and associated costs.
Highlight funding gaps or shortfalls (e.g., mezzanine financing needs).
Collaborative Tools and Reporting
Collaboration
Invite team members, architects, builders, or colleagues.
Assign permissions and roles.
Track changes with version history.
Summary Reports
Generate detailed breakdowns of all costs and sensitivities.
Export appraisals as a PDF.
Useful for owner presentations or funding applications.
Practical Applications
For Developers
Streamline cost analysis.
Ensure all cost categories are accounted for (e.g., planning, construction, finance, and disposal).
For Funders
Provide high-level, detailed costing to support funding decisions.
Visualise project profitability and risks with sensitivity analysis.
For Teams
Centralised collaboration across stakeholders.
Maintain transparency and accountability.
Conclusion
BOOM! Appraisal is a powerful and versatile platform for planning, cost estimation, and collaboration, aligning with industry standards like RICS NRM1. It simplifies project analysis, enhances decision-making, and ensures thorough cost management for successful developments.
Powering 4,500+ property professionals
What site sourcers, land agents and developers say about BOOM!
The same data, a fraction of the price
Searchland, LandTech and Nimbus charge an average of £3,540 a year. BOOM! is £540 a year with every add-on included, or £216 for the sourcing data on its own — the £20 a month plan, billed annually.
That is £3,000 a year back into your next deal.
We can charge less because we cost less to run: a small team, no sales force, and no venture capital demanding a price rise every year. The platform is also only part of what we do — the others sell a sourcing platform and nothing else.