Words / R / Business

residual valuation

noun/rɪˈzɪdjʊəl ˌvæljʊˈeɪʃ(ə)n/

C2CEFR level
90/100Rarity: very rare
TechnicalRegister

A method that derives land value by deducting development costs and required profit from a scheme's end value.

The residual valuation turned negative once financing costs climbed, killing the land bid.

Topic: Real estate & property in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Real estate & property