Tuesday, November 28, 2017

SkylineValue.com Offers Custom Office Automated Valuation Modeling (AVM) Service

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Monday, November 27, 2017

SkylineValue.com Helps Differentiate CBD Office Valuations from CBD Periphery and Suburb Locations

CBD Location

CBD Periphery

Suburb
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If you move around a very similar Class-A property (in terms of size, age, rehab, etc.) from  the Central Business District (CBD) to the CBD Periphery to the Suburb, it will fetch very different rental rates due to a number of of qualitative factors including but not limited to the quality of tenancy, type of ground floor retail and availability of parking. 

Considering the glitzy Miami CBD (in this example), the property would attract all triple-A tenants and very upscale retail paving the way for very high rental rates and translating to high market value, while the CBD Periphery would attract a combination of triple-A and highly creditworthy (but not triple-A per se) tenants along with specialty retail (but not necessarily the upscale retail that Miami CBD would easily attract). 

The Suburb location, on the other hand, would also attract a combination of a limited number of triple-A and mostly high credit tenants coupled with none to limited general storefronts (coffee shops, magazine/variety shops, men's wear, eye wear, etc.).

SkylineValue.com produced these sample valuations in less than 60 seconds each. The site is mobile-friendly so no additional Apps are needed. Try out your own subject office property. It's totally FREE and NO login/registration of any sort is required. 80 Major Office Markets in the US and Canada are currently covered.

Just click on the market of your choice on our homepage and follow the prompt. If you need help, use 'TRY IT' from the homepage. Here is the link to SkylineValue.com:

http://www.skylinevalue.com/
homequant@gmail.com

What the Experts are Saying:
“I checked out SkylineValue.com and I have to say that its awesome.  This is a classic case of good things come in small packages.  I was excited to see that the [XXXXXX] market is included.  I could see this being a very handy tool for investors, appraisers, portfolio managers or just average Joe’s who like to dabble in Commercial real estate.   For my own purposes, I selected different parts of Long Island and different sub groups of properties and I was astonished at how much flexibility and how quickly I was able to retrieve accurate values without the need for full blown work ups.  The fact that I can get a valuation right on my device in about 60 seconds is a breath of fresh air.  I will be using SkylineValue regularly!”     

Sunday, November 26, 2017

SkylineValue Helps Break-down the Monolithic Office Classes

Class-A Max

Class-A Mid

Class-A Min
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The traditional commercial appraisal requires that office properties be classified into one of the following three broad categories: A, B or C. In reality, the classes are not that monolithic. On the contrary, there is significant diversity within each class, requiring sub-classifications.

That is why, we developed the SkylineValue office valuation system with three additional sub-classes (Max, Mid and Min) within each class, offering our users the flexibility to identify the class more precisely with a sub-class, leading to more meaningful and statistically significant valuations.

The above graphics show how the differentiation takes place. Though these are all Class-A properties with similar basic attributes (size, type, age and office tenancy), there are significant qualitative differences (sub-location, land, parking, view and type of retail) that vastly differentiate them even within this monolithic office class, resulting in large price variations. In addition to the World Class Retail (on the ground floor) and View (generally waterfront), Trophy and Class-A Max properties tend to be on Over-sized lots with better Parking facilities. Therefore, lumping all of them together simply defies meaningful market valuations.

I picked the above graphics from SkylineValue.com, a "quick look" office valuation site I own and operate, to avoid having to deal with any copyright issues. It produces such valuations in less than 60 seconds each. The site is mobile-friendly so no additional Apps are needed. It's totally FREE and NO login/registration of any sort is required. 80 Major Office Markets in the US and Canada are currently covered.

Just click on the market of your choice on our homepage and follow the prompt. If you need help, use 'TRY IT' from the homepage. Here is the link to SkylineValue.com:


What the Experts are Saying:
“I checked out SkylineValue.com and I have to say that its awesome.  This is a classic case of good things come in small packages.  I was excited to see that the Long Island market is included.  I could see this being a very handy tool for investors, appraisers, portfolio managers or just average Joe’s who like to dabble in Commercial real estate.   For my own purposes, I selected different parts of Long Island and different sub groups of properties and I was astonished at how much flexibility and how quickly I was able to retrieve accurate values without the need for full blown work ups.  The fact that I can get a valuation right on my device in about 60 seconds is a breath of fresh air.  I will be using SkylineValue regularly!”     

Saturday, November 25, 2017

SkylineValue.com is Mobile-friendly Office Valuation Site; No Separate Apps are Needed

How Mobile-friendly SkylineValue.com Looks and Works as an App on iPhone
http://www.skylinevalue.com/



Most Websites are built on the old web technology so they are not mobile friendly, needing separate Android or iOS Apps. 

SkylineValue.com is mobile-friendly so it does not require any such special Apps. From your smart phone, just access internet and type in the URL as you would from your laptop or desktop and you would be using the site as if it were an App. 

SkylineValue.com produces simulated office valuations in 60 seconds or less. Try out your own subject office property. It's totally FREE and NO login/registration of any sort is required. 80 Major Office Markets in the US and Canada are currently covered. 

Just click on the market of your choice on our homepage and follow the prompt. If you need help, use 'TRY IT' from the homepage.

What the Experts are Saying

“I checked out SkylineValue.com and I have to say that its awesome.  This is a classic case of good things come in small packages.  I was excited to see that the Long Island market is included.  I could see this being a very handy tool for investors, appraisers, portfolio managers or just average Joe’s who like to dabble in Commercial real estate.   For my own purposes, I selected different parts of Long Island and different sub groups of properties and I was astonished at how much flexibility and how quickly I was able to retrieve accurate values without the need for full blown work ups.  The fact that I can get a valuation right on my device in about 60 seconds is a breath of fresh air.  I will be using SkylineValue regularly!”     

Friday, November 24, 2017

SkylineValue.com Helps Produce and Compare Values across All Office Classes

(Click on the image to enlarge)
Based on the quality of construction, architecture, size, amenities, location, stories, tenancy, view, upkeep, etc. office properties are classified into three major categories: Class-A, Class-B and Class-C. Of course, in major cities, a limited number of Trophy properties (for example, One World Trade Center in NYC Downtown and Empire State Building in Midtown) exist as well. 

Accordingly, their rental rates are significantly different, with A class properties (save Trophies) commanding much higher rental rates than their lower counterparts. Similarly, B and C classes rarely attract upscale ground floor retail and triple-A office tenants.

I used SkylineValue.com to produce these sample valuations as I own and operate it, to avoid having to deal with any copyright issues. The site is mobile-friendly so no additional Apps are needed. It's totally FREE and NO login/registration of any sort is required. 80 Major Office Markets in the US and Canada are currently covered.

Just click on the market of your choice on our homepage and follow the prompt. If you need help, use 'TRY IT' from the homepage. Here is the link to SkylineValue.com:




What the Experts are Saying:
“I checked out SkylineValue.com and I have to say that its awesome.  This is a classic case of good things come in small packages.  I was excited to see that the Long Island market is included.  I could see this being a very handy tool for investors, appraisers, portfolio managers or just average Joe’s who like to dabble in Commercial real estate.   For my own purposes, I selected different parts of Long Island and different sub groups of properties and I was astonished at how much flexibility and how quickly I was able to retrieve accurate values without the need for full blown work ups.  The fact that I can get a valuation right on my device in about 60 seconds is a breath of fresh air.  I will be using SkylineValue regularly!”     

Thursday, November 23, 2017

SkylineValue.com Helps Value a Trophy Office Property in 60 Seconds

(Click on the image to enlarge)
The above graphic represents the sample valuation of One World Trade Center, a trophy office property in Downtown NYC. SkylineValue.com produced this sample valuation in less than 60 seconds. The site is mobile-friendly so no additional Apps are needed. Try out your own subject office property. It's totally FREE and NO login/registration of any sort is required. 80 Major Office Markets in the US and Canada are currently covered. 

Just click on the market of your choice on our homepage and follow the prompt. If you need help, use 'TRY IT' from the homepage. Here is the link to SkylineValue.com:



What the Experts are Saying:
“I checked out SkylineValue.com and I have to say that its awesome.  This is a classic case of good things come in small packages.  I was excited to see that the Long Island market is included.  I could see this being a very handy tool for investors, appraisers, portfolio managers or just average Joe’s who like to dabble in Commercial real estate.   For my own purposes, I selected different parts of Long Island and different sub groups of properties and I was astonished at how much flexibility and how quickly I was able to retrieve accurate values without the need for full blown work ups.  The fact that I can get a valuation right on my device in about 60 seconds is a breath of fresh air.  I will be using SkylineValue regularly!”     

Tuesday, November 21, 2017

Homebuyers Must Learn to Differentiate between Sales and Comparable Sales

A list of sales - by default - does not become comparable sales ("comps"). Sales - even from the same neighborhood - must be quantitatively adjusted for characteristics and time to become comps. Once adjusted, the differences in property characteristics, distance and time (1/2016 and 1/2017 sales are not the same) become irrelevant. 

So, always ask your Broker/Salesperson to show how the comps have been quantitatively adjusted. 

Here is a snapshot of the adjustment process:

(Click on the image to enlarge)
The above table shows that although these are the 10 best pooled sales to value the defined subject, they are quite different in terms of the distance, time of sale, size and age so they have to be quantitatively adjusted (using sound econometric parameters drawn from the local market -- explained at length in prior posts), to be considered and accepted as comps, absent which they would remain as some random sales.

Once they are adjusted, the Comps Grid will show the line item adjustments as well as the total adjustment for each of the final five comps:

(Click on the image to enlarge)
Upon adjustment to the sales, the original sale prices are replaced in the analysis by the adjusted sale prices that contribute collectively to the valuation of the subject.

I picked the above graphics from Homequant.com as I own and operate it, to avoid having to deal with any copyright issues. My Homequant site is totally self-directed (no modeled values), totally free (no strings), and requires no login or registration whatsoever. Please choose the site that works best for you.

http://www.homequant.com/

Monday, November 20, 2017

Homebuyers Must Demand to See the Comps (Contributing to the Valuation of the Subject) – Spatially

Remember: Comparable Sales ("comps") from the other side of a major artery or from the lakefront (if the subject is not) can be significantly pricier, thus improperly inflating the value of the subject property you might be interested in. 

So, ask your real estate salesperson to show the comps, contributing to the valuation of the subject property, spatially (on the map)!

The same idea is equally applicable to the existing homeowners planning to challenge their property tax assessment. Ask your Tax Assessor to show the comps (that contributed to the market value leading to the assessed value of your home) on the map. 

Since Assessors (of larger jurisdictions) heavily depend on Automated Valuation Models (AVMs) based on statistical algorithm, this is often a serious problem. If their valuation is strictly AVM-based, it would be difficult for them to decompose the valuation, comp-wise. Conversely, if you are shown the comps on the map, you could easily relate to them, leading to total or partial acceptance or rejection, nonetheless authoritatively. 

Here is a snapshot of spatial comps: 

(Click on the image to enlarge)
Comp #7 is lakefront while the subject isn't so it cannot be a contributing comp. Similarly, #1, 8 and 10 could come from an incompatible neighborhood, potentially skewing the valuation as well. 

I picked the spatial graphic from Homequant.com as I own and operate it, to avoid having to deal with any copyright issues. My Homequant site is totally self-directed (no modeled values), totally free (no strings), and requires no login or registration whatsoever. Please use the site/system that works best for you.


http://www.homequant.com/
homequant@gmail.com

Our AVM & Other Offerings

Saturday, November 18, 2017

A Step by Step Guide to Home Valuation with Comparable Sales

Step-1: Define the Subject


(Click on the image to enlarge)

Once you zero in on a particular property you are interested in ("Subject"), compare the listed data (MLS or other listing services) with the County database (public record and available online). If they are at variance, call the Assessor's office and ask for an explanation. Land data could differ slightly as more and more public offices use GIS algorithms, while sellers/listing agents would extract the data from the original documents, potentially paving the way for limited discrepancies. Building SF and Year Built must be close, if not identical.

Step-2: Define Comps Criteria


(Click on the image to enlarge)

Comps criteria collectively is a function of the sub-market (greater neighborhood) the comps would be drawn from. In a very liquid market (with enough recent arms-length sales) the range could be tighter and vice versa. Since the comps must be similar to the subject in physical attributes, a set of selection ranges needs to be defined; similarly, adjustment rates are needed to equalize the differentials. For example, while the subject is 2,000, the comps could range between 1,600 and 2,400, thus requiring dollar adjustments. The 2,400 SF comp must be adjusted down to 2,000 SF while the 1,600 SF must be adjusted up, at the local replacement cost new($100/SF in the example). The rates could be significantly higher in expensive coastal markets while lower in rural areas.

Since the comps database might comprise an admixture of older and newer sales (generally 12 to 24 months depending on the liquidity of the market), all comps must be time-adjusted to a particular valuation date, thereby making sale dates for the pooled comps irrelevant. Once time-adjusted, there is no difference between two sales occurring in two different quarters. The sub-market in the above example did much better than its peers so an annual growth of 12% (1% per month) has been used to adjust all sales up to the valuation date. This piece of research (collecting the growth data at the sub-market level) is important. In a declining market, the adjustment would be negative meaning decay in value. Any quality market-oriented application would allow all three valuation dates: current, forward and backward.

Step-3: Select Comps


(Click on the image to enlarge)

Based on the selection criteria set forth, most self-directed valuation systems will return a pool of up to 10 most recent comps, five of which will eventually contribute to the subject value. I am using the Homequant system as I own and operate it, to avoid having to deal with any copyright issues. These are Homequant system requirements (a pool of up to 10 and 5 comps to value a subject). You may find another system online with different scoring requirements (choose the one that works best for you).

Assuming you have more than 5 (in our example, we got all 10), you have to evaluate them and choose the best 5. There are three most common methods to evaluate the pool: Distance (comps that are closest to the subject), Recency (most recent sales) and Least Adjustments (comps that require least adjustments, ignoring signs, that is, -2,500 and +2,500 are considered identical contributors). We chose the Distance method; in other words, we chose the 5 comps that are closest - in linear distance - to the subject. Of course, before you start the evaluation process, remove the two outliers, as a rule: the two comps with minimum and maximum adjusted sale prices; in the above example, comp # 1 and 10 are the two outliers. Again, removal of outliers is possible if the pool contains more than 5 comps. Notice that the lineup of the resulting 5 comps looks statistically meaningful.


(Click on the image to enlarge)

Irrespective of the evaluation methodology being chosen, comps must be simultaneously reviewed spatially, meaning reviewing the precise location of the comps on the map is equally important. The reason is simple: often, despite meeting the distance criteria, certain comps might come from incompatible yet contiguous neighborhoods. For example, since our subject is away from the lake, comps from the lakefront block (comps #7) would be inappropriate, although the distance criteria could have been met. Therefore, the spatial review of the comps is critical.   

Step-4: Analyze Final Value


(Click on the image to enlarge)

The final valuation picture is generally depicted via a tabular form called the Comps Grid. It's a line item comparative analysis of the subject vis-à-vis the final five comps that contribute to the subject value. It shows the neighborhood(s) they are drawn from, respective distances from the subject, property characteristics with dollar adjustments, and the sales complex including time adjustments. All of this collectively translates to the subject value. The most probable value is usually the median value of the adjusted sale prices of the five comps, while the most probable value range represents the statistical bound between the 25th and 75th percentile values. Of course, these parameters are specific to the Homequant system and may vary by the application or the target audience. For example, an alternative system that is geared towards the short-term investors might expand the probable value range to the 5th and 95th percentiles, thus revealing the potential short-term investors' entry and exit points. 


Thanks,

- Sid Som
homequant@gmail.com
http://www.homequant.com/

Thursday, November 16, 2017

Press Release - Homequant Launches Vastly Improved and Enhanced Release 4.0

Press Release 
https://www.prlog.org/12706456.html

ORLANDO, Fla. - May 3, 2018 - PRLog -- Homequant.com, the inventor of valuing simulated subjects with actual comparable sales, is pleased to announce the launch of its vastly improved and enhanced release 4.0.

The 4.0 is backed by significant improvements to its popular spatial comps interface and the structure and presentation of the comparables grid, as well as a myriad of brand new features like a lighted execution bar, in-sync valuation screens, enhanced scoring and ranking methodologies and a printable valuation report, to name a few.

The 4-point lighted execution bar is introduced to guide users through the entire valuation process, step by step. The prior one page crowded valuation screen has now been pursed out to four easily recognizable and understandable screens, in complete sync with the execution bar. The spatial comps interface – the ability to select and deselect comps off the map – has been simplified to a one-click solution. The comparables grid, on the other hand, has been expanded to include the line-item adjustments leading to the total adjustment, thereby allowing easy decomposition of the final subject value. A 2-page PDF report, with a pop-up for custom notes, has been added to depict the final comparables grid, value analysis, spatial graph and the adjustment matrix.

Instead of offering outdated and frozen model-driven values, Homequant.com empowers its users with an innovative yet totally self-directed comparable sales system, with numerous advanced features like comp matching, size and time adjustments, multiple ranking options, professional-looking valuation grid, percentile curve valuation analysis, and more. The system incorporates a spatial interface, allowing seamless swapping of comps right on the map. It even allows different valuation dates – current, forward and backward – aiding a diverse audience.

Homequant.com is not only an excellent market knowledge tool for the current and future homeowners, but is also great for appraisers, assessors, analysts and brokers needing quick validation of their existing values. It's great for appraisal reviewers and hearing officers as a QC/review tool. Needless to say, it's perfect for mortgage professionals needing a "first look" valuation. Unlike econometric AVMs, it provides total transparency. Unlike BPOs, it's backed by a sophisticated valuation system.

As usual, everything is still in plain English, presented in an easy-to-understand format, without the usual appraisal jargon. And, it's all free and requires no registration or login whatsoever.

The President of Homequant recently explained their invention, "There are roughly 90 million single family homes in the US and, on average, 3% (annually) sells. By inventing the concept of the simulated subject, we are able to value those 97% unsold properties by storing only the 3% sold data. The property valuation industry has started to recognize the significance of our invention. Simply put, our collective invention of Homequant, TownAnalyst and LocValu is revolutionizing the home valuation ecosystem."

If you'd like more information about their web solutions, or to schedule an interview with them, please email them at: homequant@gmail.com.

Contact
Homequant, Inc.
***@gmail.com
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