Valuation of a property is not a easy task. You need data to reach estimated value. Appraisers basically use three methods viz. Sales Comparison, Capitalization, and Replacement Cost. We are currently working on a worksheet that can help users in a better way to evaluate their property.
The following calculator software is a bit awesome from any other sheets mentioned below. It consists forecasting sheet that will help you determine the income and value of a investment property. Expenses, mortgage,before tax cash flows and one sheet to calculate the future selling price using methods like NPV and IRR.
Capitalization method : This sheet will help you calculate and compare the different properties with their cash inflows and outflows. Inputs like purchase price,rent etc are to be filled by user to determine the initial value of the estate.
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For commercial land schemes here is a sheet that can help you a bit. It is a very basic type of spreadsheet that is not suited for complex projects.
Sales comparison method : One of the very basic method used. In this method appraiser compares the property to similar ones that have been sold recently. But this does not mean that if your neighbor estate is sold for a good value, your’s will also. There are certain other appraisal principles like supply and demand that work.
Just like every market. You might be lucky if real estate prices are at boom at your locality or you might have to wait for some time. You would require data like recent sales at your neighborhood, contract,offers,refusals and listing. You can find data from appraisers,brokers,website listing, courthouse records,property managers as well as you can ask parties that had been in such transactions. Here is a sample sheet that will give you an idea about this method. Here you can select the type of real estate commercial or residential. Keep in mind that this is just for example.