Architect Blueprints Commercial Property, does it raise values?

[Timothy Munger]

Considering a 10+ unit residential commercial property if one already owns the land, has everything else in order: civil engineering, soil survey, Phase I, and architectural blueprints...if the owner was forced to sell due to lack of financing and or some other reason does having those things necessarily increase the value of the vacant land? Would the owner possibly get their money back during the sale? I would love answers based on a possible personal experiences. This is a class A piece of land in a major metropolis. To be clear this means say architect and engineering alone would be $110k, so if the land was purchased for $300k that with plans and basically everything ready to go the land could sell for $410k...? Thanks 

[Nik Moushon]

Yes, you can sell the land at a premium if you have all those things in order. The key though is to have the permit ready to be issued. That means going through the entire city review process and have everything approved. Shovel ready, as they call it. What you are selling is "time saved" and the extra up front capital that isnt needed. 

If they are not permit ready then you can still sell at a premium but not much. Its not very enticing to buy something that you didnt get input on design and layout to have to sit through 12-24 months of city review.