Value it on the income approach

1 · Learn the move · Fact-check list

An owner who builds to hold and never sells still needs a view of value: before a refinance of the project loan, before a partner buyout, and for the internal mark headquarters carries. That view is not an appraisal, and it should not pretend to be one. It is your own range, built so you can test the appraisal you order rather than simply receive it. The income approach is the right frame, and its weak point is always the same number: the cap rate. A model asked for a value will choose one, and a chosen cap rate is an opinion of value wearing a decimal. So the model does not choose. It takes the comparable sales you pulled, reports each comp's cap rate only as the record states it and who stated it, notes whether that rate was built on in-place or projected income, and applies the range of stated rates to your NOI. A comp with no stated rate is left out of the range, not filled in. Then a fact-check list: the inputs that would move the range most if wrong, each with the document that settles it. The range is yours to test. The appraisal is the appraiser's.

From my NOI and the comparable sales below, show a value range on the income approach. Report each comp's cap rate only as the source states it, with who stated it and whether it is on in-place or projected income. Exclude comps with no stated rate. Apply the stated range to my NOI and cross-check on price per SF from recorded prices. No single value. End with a FACT-CHECK LIST of the inputs that would move the range most, each with its settling document. [operating statement] [comps]