Understanding the Valuation Value Chain

Blog Post, by FUEL Enterprises

You may think commercial property valuation is all about numbers, formulas and statistics. But what about the people involved? A transaction takes a village, from investment sales brokers, lenders, owners, investors, investment managers, appraisers and many others who work to make transactions succeed. Every party has a different role in the transaction, and a different perspective on a property’s value tracked in their asset registry.

An investment broker may look at the market as a whole and see the property as a great value add or as an outdated white elephant that should be replaced or renovated to stay on par with the market. An appraiser may look only at the size and condition of the property, without a larger view of the property’s potential or lack thereof.

The valuation process is really about connecting the data dots among these parties and their varying perspectives, and providing each party with the information they need. Since every party involved in a transaction is coming from a different angle, an open line of communication is important.

Collaboration is the driver of every commercial real estate transaction, so having technology that enables information-sharing makes for a smoother, faster transaction. When your valuation platform is designed for collaboration, you can provide the same real-time data to every party involved and make sure every party’s asset registry is up to date with the most accurate information possible.

Where FUEL Comes In

Technology like the FUEL Valuation platform can help. As a cloud-based platform, FUEL Valuation is designed for collaboration. When you’re creating scenarios and models, you can share the information with anyone involved in the transaction—even if they’re not FUEL subscribers. Transaction parties can view the same property and portfolio models through a unique URL that provides immediate access from any listing platform or application.

The valuation value chain is critical in the life of a transaction. All parties need simple and fast access to valuation data, so it makes sense to seek out a platform that closes the information gaps with minimum effort.

FUEL Enterprises develops cloud-based, data-driven software for commercial real estate. Our flagship product, FUEL Valuation, is the leading next generation solution for valuation and cash flow forecasting. Start your free trial now.

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February 25th, 2019|Blog|