Today we have launched a new feature in Aprao with allows you to assess residual value faster than ever before and see the impact of changes in real-time. We call it 'Valuation Mode' and it's a powerful tool for development valuation teams and property development teams.
How does this help you?
Development valuation teams
You can now auto-calculate the residual land value and see the impact of your changes on the residual value in real-time. Any adjustments made in the appraisal such as revenue assumptions, build costs, professional fees and finance assumptions will impact the residual value. These changes happen in real time and allow you to turn around valuations faster than ever before.
For developers
When looking at new opportunities you want to be able to run numbers quickly to see if the asking price for a development site is close enough to make an offer on a site. This new feature makes it faster than ever to do this. You can explore your assumptions, unit mixes and project costs and see what that means to the residual value.
Let's take a look at how this new feature works
- When you start a new appraisal or feasibility in Aprao you will set your target return, either as a return on cost (profit on cost) or a return on GDV (profit on gross revenue).
- In the site purchase tab you will choose the 'Residual Valuation' mode to auto-calculate your land value.
- Proceed to complete your development appraisal or feasibility as normal and you will see that residual value updating in real time.
Video walkthrough
Using a fixed purchase price to calculate profit?
We have made it easy to do this too, all you need to do is to select the 'Fixed Price' option from the dropdown on the site purchase page. This will allow you to manually enter the purchase price and Aprao will automatically calculate your profit metrics.
You can easily toggle between the residual value and your purchase price for easy reference.
This feature is now live and available in Aprao for all customers 🎉
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