Time Interval: 00:00:00 - 00:05:12
Summary
Residential Units Details: Covers various assumptions needed for developing and selling residential units, including sales commission, pre-sales, and cost calculation methods.
Sales Commission Dynamics: Discusses commissions at closing and signing, emphasizing pre-sales for large projects to secure funding with marketing team involvement.
Sales Value Calculations: Explains methods like market value per unit versus net salable area for more accurate planning and control.
Cost Calculation Options: Offers flexibility in using per-unit or per-area costs based on project type, enhancing budgeting accuracy.
Forecasting Methods: Highlights straight-line vs. S-curve forecasting for construction and sales timelines, with insights into their impacts on cash flow.
Insights Based on Numbers
- 50%: Commission percentage for project marketers required at pre-sale signing to maintain cash flow.
- $750,000: Example market value for residential units, such as a three-bedroom townhouse, used to illustrate pricing methods.
- 350,000: Average cost per townhouse, emphasizing the importance of flexible calculation methods.