Property Estimate value
Real Estate Valuation It is a reasoned opinion of a qualified expert valuator based on the information and data available to the valuator at the time of valuation. This includes behavior by adhering to the code of conduct. There are three methodological approaches used internationally to determine value, which are 1-Comparative Approach or Market Approach: Comparative Sales Method. 2- Income Approach: There are four main methods that fall under the income approach: (investment method, cash flow deduction method, profit method and residual value method) in addition to a non-essential method, the multiple of total income which is applied in certain cases. 3- Cost Approach: Through estimating the value of the land separately (as a vacan plot of land) using Highest & Best Use technique. evaluation of a property's value based on a given point in time that is performed by a professional appraiser during the mortgage origination process. The appraiser is usually chosen by the lender, but the appraisal is paid for by the borrower.
The appraised value of a home is an important factor in the loan underwriting process and plays a role in determining how much money may be borrowed and under what terms. For example, the loan to value (LTV) ratio is based on the appraised value.
Real Estate Feasibility Study
ALFARAJ will assist our clients at the inception of a project to formulate the development feasibility, viability and sensitivity studies thus enabling our clients to make informed business decisions at a time when it matters most.
Our expertise includes such skills as:
Ability to assess project specific construction risks and development opportunitie.
Preparation of high level construction cost budgets for alternative design solutions and the procurement and delivery options.
Preparation of anticipated cash flow associated with the major expenditure milestones.The skill sets to participate with our client’s key team members in the initial development strategic planning sessions.
The preparation of sensitivity analyses which factor in time and cost variables.
Providing advice on the types of expenditure and level of costs (including building costs) to be included within the Development
Budget/Appraisalimplementing risk analysis and determining levels of contingency utilising specialist computer software.
Preparation of high level cost / benefit analysis, measuring both capital and operational costs which will assist with our client’s asset management activities and the development of whole of life property analysis. And
Real Estate Market Study
ALFARAJ, Real estate Feasibility study requires that you investigate the possible negative and positive outcomes of a real estate project before you start investing time and money into it. Such an analysis is called a (real estate) feasibility study.
In more concrete word this analysis allows you to take into consideration legal, economic, technological, and other factors, which are important for the successful completion of real estate development.
1. Market analysis:
Total market vs. market segment.
2. Location analysis:
Consider the characteristics of the macro (city or urban center) and micro (site and close surroundings) location of your object.
3. Usage concept:
a. Prepare a draft of first project plans based on.
b. Establish a framework, which covers the following.
c. Highlight any special characteristics (e.g. themed shopping center)
4. Competition analysis.
a. Identify relevant competitive real estate in your marketb. Prepare a checklist of important criteria .
5. Risk analysis:
A risk analysis aims at improving the decision through the identification of both risk aspects that can the influenced and those beyond control. You need to consider.