How can you maximize efficiency and accuracy with valuation software?

1 Choose the right features

Choosing the right features for your needs is the first step to maximize efficiency and accuracy with valuation software. Depending on the type and complexity of the properties you are valuing, you may require various functionalities and options. Automated data import and export from various sources, such as MLS, tax records, or financial statements can help save time and increase accuracy. Additionally, customizable templates and formulas for different property types, such as office, retail, industrial, or multifamily can be beneficial. Scenario analysis and sensitivity testing can also be used to compare different assumptions and outcomes. Finally, interactive dashboards and charts can be used to visualize and communicate your results.

2 Use reliable data sources

Maximizing efficiency and accuracy with valuation software requires utilizing reliable data sources for inputs and assumptions. Data quality is essential for producing accurate valuations, so it's essential to verify and validate the information you use. You can obtain reliable data from market reports and databases from reputable sources, such as CoStar, CBRE, or NCREIF. Additionally, comparable sales and rental transactions from local brokers, appraisers, or online platforms are beneficial. Property-specific information from owners, managers, or tenants, such as occupancy, income, expenses, or capital improvements is also necessary. Lastly, industry standards and benchmarks such as cap rates, discount rates, or growth rates should be taken into consideration.

3 Apply appropriate methods

Accurately and efficiently maximizing valuation software requires the application of appropriate methods for analysis and calculations. Depending on the purpose and scope of your valuation, you may need to use different techniques. The income approach, for instance, estimates the value of a property based on its expected future cash flows. The sales comparison approach, on the other hand, estimates the value of a property based on its similarities and differences with comparable properties. Additionally, the cost approach estimates the value of a property based on its replacement or reproduction cost. Lastly, a hybrid approach combines two or more methods to account for different factors and perspectives.

4 Generate comprehensive reports

Maximizing efficiency and accuracy with valuation software requires generating comprehensive reports that present and support your findings and conclusions. Reports should be clear, concise, and convincing. To help you create comprehensive reports, look for software with customizable formats and layouts that suit your audience and purpose. You should also include detailed summaries and explanations of your inputs, assumptions, methods, and results, as well as supporting evidence and documentation of your data sources, calculations, and adjustments. Additionally, it’s beneficial to include recommendations and insights based on your analysis and findings. Valuation software can be a valuable asset for commercial real estate professionals who need to perform fast and accurate property valuations. By following these steps, you can maximize efficiency and accuracy with the software, thereby enhancing your performance and reputation in the market.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?