If you’re an MAI or Certified General appraiser, youâve probably noticed AI creeping into the professionâprimarily helping with the “front-end” of reports like economic summaries, neighborhood data, and market trends. While helpful, this barely scratches the surface of whatâs possible.
The real revolution is just beginning.
đ§ AI for the Real Meat of the AppraisalâThe Part Your Clients Actually Crave
ValueXpose is years ahead of generic AI tools. Our system isnât just scraping data for write-upsâitâs been trained and refined over the last two years by senior Appraisal Institute designated appraisers to automate advanced valuation methodologies that were once too time-consuming, expensive, or complex for most appraisers to perform.
What once required legacy modeling tools like ARGUSârequiring a time consuming model-by-model basis along with weeks of training, a tedious and fragmented interface, and a costly software licenseâcan now be completed in under an hour using a single guided questionnaire that seamlessly connects all applicable valuation methodologies, with no extra training, time, or significant expense added to your workflow.
âĄïž Imagine quoting the same fee and delivery time as your competitorsâŠ
Your competitors typically provide a bid that says:
“We will provide the property’s “as is” market value of the leased fee interest for $2,800 and a one week delivery using the following scope of work: Income approach (direct capitalization) and the sales comparison approach in which the value indications will be reconciled into a final “as is” market value in Leased Fee interest”.
đ How It Plays Out in a Competitive Bid
But what if your fee quote said the following:
“We will provide the property’s “as is” market value of the leased fee interest for $2,800 and a one week deliveryusing the following scope of work:
- First, we will determine the property’s stabilized market value in Fee Simple Interest using the Sales Comparison, Direct Capitalization and the Yield Capitalization reconciling these three value results into the property’s fee simple stabilized market value.
- We will also perform a second yield capitalization analysis, this time solving for the propertyâs stabilized market value in leased fee interest based on current contract rents and any complex tenant lease terms.
- We will then apply an advanced methodology that compares fee simple and leased fee cash flows, net of operating expenses, on a month-by-month basis until all tenant spaces achieve market rent levels.
- Any indicated month-to-month cash flow differences use present value analysis at a customized discount risk rate to convert the annuity to a single value as of the property’s stabilized date.
- The concluded âas isâ market value of the propertyâs leased fee interestâour clientâs primary objectiveâwill depend on whether the reconciled stabilized fee simple value is impacted by a present value rent loss (from below-market contract rents) or an intangible value (from above-market contract rents).
- If an intangible value is present, we will allocate the concluded âas isâ market value of the leased fee interest between the real property component and the intangible leasehold interest.
- In case the property is currently at non-stabilized occupancy, we will perform all the above analysis that establishes the property’s prospective stabilized market value in leased fee interest and a separate DCF financial model with its own discount rate and any market derived entrepreneurial profit together with all the lease up costs to stabilized occupancy indicating the property’s “as is” leased fee market value at non-stabilized occupancy.
If your property is a partially developed property or a vacant lot that could be developed now or in the future, your bid’s scope of work can say:
- We will perform all the above that establishes the property’s prospective stabilized market value in Leased Fee interest (if the property has existing tenants whose lease terms extend past the date of stabilization).
- Also we will provide a prospective “as if complete” non-stabilized occupancy market value in Leased Fee interest (if the property has existing tenants), plus a cost of production (COP)needed to bring the property to its prospective “as if complete” non-stabilized market value.
- If the property’s cost of production (COP) is less than its prospective âas if completeâ non-stabilized market value, the development is considered financially feasible, as it allows the developer to fully recapture all agents of productionâland, labor, capital, and entrepreneurial profit.
- If the COP is greater then the prospective “as if complete” non-stabilized occupancy market value then the proposed development is not considered financially feasibleto immediately start the development process.
- In such cases, we will evaluate and quantify the holding period requiredâfrom the date of appraisalâbefore the proposed development becomes financially feasible to initiate in the foreseeable future.
- Accordingly, we will develop a separate DCF model with its own discount rate to determine the property’s current âas isâ market value as of the appraisal date, reflecting its status when immediate development is not yet feasible.
- This residual “as is” market value indication also serves a purpose in quantifying the property’s most profitable usein the Highest & Best Use section of the appraisal report.
- You can also provide another sales comparison approach methodology for the property’s “as is” market value when not ready for immediate development as an additional approachto reconcile with the “as is” residual value indication.
Which proposal do you think your client will choose?
The difference is obvious.
đ€ Itâs All Driven by a Single Guided Questionnaire
Even a trainee can fill it out.
Your reviewer then tweaks the trainee’s answers, clicks a button, and within 30 seconds, all applicable models, exhibits, and even narrative report sections are automatically generatedâclearly written and easily digestible by clients and reviewers alike.
“This isnât just about better reports. Itâs about winning the job 95% of the time because your scope of work completely outclasses the competitionâwith no significant increase in time or cost.”
đĄ ValueXpose AI: The Future of Appraisal⊠Today
This system isnât theory. Itâs not a roadmap. Itâs already AI built and being used by appraisers today to:
- Secure non-complex and complex, high-paying assignments
- Quote competitive fast delivery times and fee quotes with more dominating robust analysis
- Empower less experienced staff to produce top-tier work
- Eliminates manual back of the napkin modeling and cuts advanced methodologies processing to a matter of minutes
Youâre not just adding tools to your toolbox. Youâre equipping your firm with a market-dominating edge.
đŹ Final Thought
If you’re still relying on legacy software and repurposed Word templates, youâll fall behind the wave thatâs already here. ValueXpose AI was designed by and for appraisers who know what this profession demandsâand where it’s headed.
đ„ This AI tool is years ahead of its time.
đ It gives you the power to dominate your market.
𧩠While staying fully competitive on time and fee.
Best of all, you can seamlessly integrate these tools and auto-generated Word report sections into your existing appraisal report writing workflowâor use our modern report writing dashboard to produce the entire appraisal report from start to finish.
Youâll also gain access to our cost-effective International Analyst Program and ordering dashboard, which can assist in completing key report sectionsâup to the Highest & Best Use, sale display sheets, and even the initial completion of the guided questionnaire, all subject to your review, final approval and press of a single button to recalculate and update.
Letâs connectâWe’ll walk you through a free demonstration using your next live appraisal assignment or a recently completed appraisal so you can see exactly how it works in practice showing you how these AI tools can enhance what they’ve already done.
đ Schedule a demo now
https://calendly.com/ray-nicolas/valuexpose-demo-team
Looking forward to showing you the future of appraisal technology.
Follow ValueXpose on LinkedIn. Check out our website.
George Denman, MAI
Co-Founder and CEO
ValueXpose Software
The future of appraisal starts with you. Take the first step today.
