Valuation Methods for commercial properties involved two methods which was Residual Sum Method and Profit Method. Given the following information below, calculate and analysis the valuation of the property by using the Residual Sum Method.

Information given:

A medium site with approval for the development of 700 square meters office building is offered for sale and a developer wishes to know how much he can afford to bid for it. He estimate to wait until one year to complete and sell the development, that he has to pay 18% per annum for the borrowed money. The office will cost RM500 per square meter to build including all site works and the provision of services. He also decided that he will require a profit of RM80,000. The office building is anticipated to have a market value of RM650,000.

Given also the assumption of fees such as :

Professional fees( Architects, planners, quantity

Serveyors@10% 0f building costs.

Legal expenses on sale of office building = RM15,000

Agents fees on sale of office building = RM11,000

Advertising costs on sale = RM 8,000

I need it urgently!!! Please help me