Valuation and Appraisal

Valuation and Appraisal covers NOI, cap rates, income yields, cash-on-cash return, resale proceeds, reversion, feasibility, appraisal approaches, rent ratios, and real-estate valuation metrics.

Use these pages when property income, expenses, valuation method, exit assumptions, or investment yield changes collateral value or investor return. It sits inside Mortgages and Real Estate Finance, so readers can move up when the broader property-finance context matters.

When It Matters

Use this page as orientation when the branch label is helpful but the controlling evidence still belongs to a specific term page below it.

What to Check

• NOI, effective gross income, operating expenses, reserves, cap rate, discount rate, and rent assumptions.
• Appraisal, valuation model, rent roll, lease terms, market comparables, sale data, and expense records.
• Income approach, cost approach, repeat-sales data, cash-on-cash return, reversion, and resale proceeds.
• Property type, location, occupancy, lease rollover, capex, tax, and financing assumptions.
• Effect on loan sizing, LTV, debt service, equity return, collateral value, and exit risk.

Common Mistakes

• Using gross rent as if it were NOI.
• Ignoring capex, vacancy, reserves, taxes, and lease rollover.
• Comparing cap rates without property type, lease quality, and market context.
• Treating appraisal value, transaction price, and model value as identical.

Property-income and valuation content is educational and does not provide appraisal, investment, tax, accounting, legal, or lending advice.