04

Income and Expense Analysis (for Investment Properties)

For income-generating properties, such as rental buildings or commercial spaces, we estimate future cash flows by analyzing rental income, occupancy rates, and operational costs. This helps in calculating the potential return on investment (ROI) and determining the property’s financial viability. Expenses such as maintenance, property taxes, insurance, and utilities are carefully considered to project long-term profitability.

05

Valuation Methods

There are several methods we use to calculate the property's value, depending on its type and purpose:
- **Sales Comparison Approach**: Comparing the property to similar ones sold recently in the area.
- **Income Approach**: Particularly for rental or commercial properties, this involves assessing the expected income the property will generate.
- **Cost Approach**: Estimating how much it would cost to rebuild or replace the property in its current condition, including depreciation and land value.

06

Adjustment for Property-Specific Factors

Unique features or conditions specific to the property, such as high-end finishes, recent renovations, or the need for significant repairs, are factored into the estimation. Properties with high maintenance requirements or those needing modernization may see a reduction in value, while those with modern amenities, energy-efficient features, or prime locations may see an increase.

07

Evaluation of Future Market Potential

Beyond the current market value, we also consider the property’s future potential. This involves forecasting market changes based on regional growth trends, infrastructure projects, and economic forecasts. Properties in areas slated for new commercial or residential developments might appreciate in value, while those in declining neighborhoods may see a decrease.

08

Facility Management and Operating Costs

As part of our facility management services, we assess ongoing costs related to property maintenance and operation. This includes evaluating the current management processes, service contracts, repairs, and the efficiency of systems like HVAC, plumbing, and electrical. Optimizing these operational aspects can reduce costs, improve property value, and extend the property’s lifespan.

09

Legal and Regulatory Considerations

The legal status of the property is also reviewed during the cost estimation process. This includes verifying clear title ownership, checking for any outstanding liens or disputes, and ensuring compliance with local zoning laws, building codes, and safety regulations. These factors can significantly influence both the marketability and valuation of the property.

10

Final Valuation Report

After gathering and analyzing all relevant data, we prepare a comprehensive valuation report. This report details the methodology used, provides a clear breakdown of the factors that influenced the valuation, and offers a precise estimate of the property's current market value. It also includes recommendations for facility management improvements that could further enhance the property’s value and efficiency.