Creating an appraisal

You can create an appraisal for property and units.

Note: Ensure that:

• A deal is created.

• Full access is provided to the following Asset Management permissions:

• Property Tracking

• Units

• Appraisals

• A property is added to a deal.

• In order to apply an Appraisal to a unit, at least one unit is added within a property.

• In order to assign a Real estate appraiser to the Appraisal, the Real Estate Appraisers are added to the Organization Contacts (External).

To create an appraisal for a property or unit, perform the following steps.

1. At the top-left of the page, click Portfolio.

2. On the Portfolio page, click Deal ID or View for the deal that you want to update.

3. On the left navigation menu, click Property.

4. On the Property page, click View for the property that you want.

5. In the left navigation menu, click Appraisals.

6. On the Appraisals page, click New Appraisal.

7. In the New Appraisal dialog box, enter the following information.

Field Description
Appraisal Details
Appraisal Type

The appraisal type such as Commercial, Lot, and Plan.

  • Commercial: Commercial properties include various appraisal types such as office buildings, retail centers, industrial facilities, hotels, and multifamily developments. The purpose of a commercial appraisal is to determine the property's worth based on its characteristics, market conditions, and potential income generation.

  • Lot: A lot appraisal focuses on the value of the land. This type of appraisal is common when the primary interest is in the vacant land and not the buildings or structures.

  • Plan: The valuation of a specific set of plans for a unit(s). This type of appraisal is common when the primary purpose is to sell several units of the same plan type and rely upon a single valuation method for each.

This field is mandatory.
Unit

The unit(s) for which you want to create an appraisal.
Appraisal Date

The date when the appraiser assesses the property and determines its value.

This field is mandatory.
Appraisal Expiration Date The appraisal expiration date.
Appraised As Of Date The specific date from when the appraisal becomes effective.
Appraised By The appraiser who evaluated the property.
Appraisal Sq Footage The square footage of the property.

Appraisal Unit Count

The number of units within a property.

Appraisal Name

The name of the appraisal.

Final Reconciled Market Values

Final Appraised Value

The final appraised value of a property.

This field is mandatory.

As Is Value

The value of a property in its current physical condition, without any repairs, renovations, or improvements.

As Complete Value

The value of a property after it is fully constructed.

As Stabilized Value

The value of a property after occupancy, income generation, improvements, renovations, or lease-up.

Upon Completion Value

The value of a property after it is fully constructed and it is ready for occupancy.

Upon Stabilized Value

The value of a property after it reaches a stable state of occupancy and generates consistent income.

Go Dark Value

The value of a property if the primary tenant were to vacate the property. This value is crucial when there is a single tenant in the property.

Insurable Value

The insurable value is the cost required to fully replace or rebuild a property if it were to be damaged or destroyed.

Appraisal Valuation Approach

The approach used to determine the value of a property through an appraisal process. You can determine the value of a property using either of the following approaches:

  • Cost: Estimating the cost to replace or reproduce a property.

  • Income: Estimating Net Operating Income (NOI) and dividing it by capitalization rate.

  • Sale: Comparing it with other similar properties that have been recently sold in a similar market.

To add an Appraisal Valuation Approach:

1. Click + New Approach.
2. Select the Approach, Valuation Type, and enter the Valuation Amount and Price/Sq Ft.

Note: According to the selected approach, the Cost/Sq Ft, Capitalization Rate, or Price/Sq Ft field is displayed.

3. Click Save.

Note:  

• To edit an approach, click Edit .

• To delete an approach, click Delete .

Valuation Methodology Details

Anticipated Stabilized Date

The projected date when the property is expected to achieve stabilization.

At this stage, necessary construction, repairs, and renovations are complete, and the property is fully operational.

Discount Rate

The interest rate used to calculate the Net Present Value (NPV) of expected cash flows.

Absorption Rate

The rate at which available space is leased or sold within a specific period. It is a key metric for understanding the demand for properties.

Absorption Rate Frequency

The period for which absorption rate is calculated, such as Monthly, Quarterly, and Yearly.

Land Value

The value of a property including land and any improvements (such as buildings or landscaping).

Site Value

The value of the land excluding any improvements that alters its value.

Improvement Value

The value of improvements made to a property.

Replacement Value

The amount required to repair or reconstruct the property to its original state after a loss ( For example, fire or damage).

Interest Appraised

The interest appraised such as Fee Simple, Leasehold, and Fee and Leasehold.
4. Click + New Appraisal.

A message is displayed indicating that the appraisal is created successfully.