The reason your considering Property Development is you understand and can appreciate that it’s a great way to make a profit. SO why on earth would you want to pay full asking price for any property that you are purchasing. By doing so you are simply reducing the amount of profit that you will get after everything is said and done. You want to be sure to purchase a property at a reasonable price to ensure that you will walk away from this project with a profit.
To make sure your not over paying you will need to reverse engineer your feasibility based on the expected ROI & IRR which will give you your residual land value OR otherwise you can also obtain a sworn valuation by an accredited valuer.
That is why it is important to know your numbers and have your walk away price. Conduct your feasibility study, assess all areas and stick to your target ROI otherwise you’re the one that will be out of pocket.