Companion files · Real Estate Appraisal

Appraised at $12,100,000, sold at $12,850,000

Real Estate Appraisal: Appraisal by the Numbers: The Three Approaches, Reconciliation, and Why the Appraised Value Differs from the Price, With the Models Supplied.

These are the companion files of the book. A 72-unit apartment property is appraised for the buyer's lender by the three approaches: sales comparison $12,150,000, income $12,050,000, cost $12,500,000, reconciled at $12,100,000 as is. The contract signed three weeks earlier says $12,850,000. The workbooks take the $750,000 gap apart component by component until $45,906 remains, and carry the residential case alongside. Four workbooks reproduce every figure the book prints. No sign-up, no email is asked for, nothing is locked. Yellow cells with blue type are inputs; grey cells are formulas.

All the companion files and the read-me, in one archive246 KB

The archive holds the eight files below, with 00_START_HERE.md at its root. No macros, no circular references, no external links in any workbook. They recalculate in Excel, LibreOffice or Google Sheets.

The files

Three numbers to reproduce first

One cap rateFive sales report a mean cap rate of 6.03 percent on the brokers' NOI; restated with reserves and a market management fee, the mean is 5.80 percent, and the appraiser concludes 5.75 percent
One valueNOI of $702,822 at 5.75 percent gives $12,222,983 as stabilized; less the roofs and half a year of loss to lease, $12,050,000 as is
One gapPrice $12,850,000 less value $12,100,000 is $750,000; the eight components explain $704,094 of it, and the appraiser's own share (the date lag and the residual) is $102,623, 0.85 percent of value

The files are provided as they are, without warranty of any kind. The models are illustrative: the property, the city, the parties and every comparable sale are fictional, and the figures are the book's assumptions, not market statistics or forecasts. Nothing here is appraisal, investment, legal or tax advice, and none of it is an appraisal of any property.