Valuation · Multifamily & Commercial
Broker Opinion of Value Model
Produce a BOV an owner will take seriously: an income approach, a sales comparison grid built to appraisal standards, and a reconciled value with a range you can defend.
What you get
- Seven tabs: subject, income approach with cap-rate sensitivity, a six-comp adjustment grid, rent comps, reconciliation, and a one-page BOV summary.
- An adjustment grid that follows the Appraisal Institute sequence — transactional adjustments compounding, property adjustments additive.
- Gross and net adjustment reported per comp, with each one flagged good, fair or weak.
- Concluded value with a range, plus implied cap rate, price per unit and price per SF.
How this model was built
A BOV gets reviewed. Whoever receives it will look at your three best comps, check whether the adjustments are coherent, and ask why the income approach and the comps disagree. This model is organised around those questions.
The adjustment sequence, done properly
Adjustments are not one bucket. Appraisal practice applies them in two stages, and the order changes the answer:
| Stage | Adjustments | How they’re applied |
|---|---|---|
| Transactional | Property rights conveyed, financing terms, conditions of sale, market conditions (time) | Sequentially — each compounds on the running adjusted price |
| Property | Location, size, age & condition, quality & amenities | Additively, on the resulting time-adjusted price |
Why this isn’t pedantry
Most free grids sum every adjustment and apply it once. On the sample comps in this model that shortcut moves the sales-comparison indication by about $40,000 — small, because the time adjustments are small. Widen the market-conditions adjustment, which is exactly what happens when you are pricing against 2021 sales, and the error grows with it. The model’s test suite computes both methods on every release and reports the gap, so the sequence cannot quietly regress.
Gross adjustment is the comparability test
Net adjustment tells you direction. Gross adjustment — the sum of the absolute values — tells you whether the comp is really a comp. The grid reports both and flags each sale as good, fair, or weak against 25% and 35% gross thresholds. Set a weight of zero to drop one entirely rather than quietly leaving a bad comp in the average.
The two approaches have to agree
The reconciliation tab reports the implied cap rate at your concluded value next to the cap rate you used in the income approach. If those diverge materially, your comps and your income analysis are telling different stories, and that is worth resolving before the number reaches an owner.
Using the model
- Subject. Describe the property and enter stabilized income — not a trailing twelve months distorted by a one-off.
- Income Approach. Set the market cap rate. The sensitivity table shows value at ±50 bps.
- Sale Comps. Enter up to six sales and adjust each against the subject. Watch the reliability flag.
- Rent Comps. Support the market rent behind the income approach.
- Reconciliation. Weight the two approaches and set the range.
- Summary. The page you hand over.
Fill it from a real deal
Comps are the slowest part of a BOV, and they are already in your pipeline. With the IntellCRE MCP connector, your assistant can pull the subject property and its selected sale comps straight into the grid:
The connector exposes the subject, its unit mix and rents, and the comparable set — which is the entire left-hand side of the adjustment grid, without retyping.
Compatibility
Excel 2013 or newer, Google Sheets, and LibreOffice. No circular references, no macros.
Download Broker Opinion of Value Model
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Frequently asked questions
Is a BOV the same as an appraisal?
No. A BOV is a broker’s supported opinion, used for listing conversations, owner reporting and internal decisions. It is not an appraisal and is not a substitute for one where an appraisal is required — by a lender, a court, or a regulator.
How many comps should I use?
The grid holds six; three to five well-chosen sales usually beat six mediocre ones. Weight by reliability and set weak comps to zero rather than letting them drag the average.
Where do the adjustment percentages come from?
You. They are derived from trend analysis, matched-pairs analysis, or market survey. The model applies them correctly and shows the arithmetic; it does not invent them, because an adjustment you cannot explain is one you will be asked about.
Can I use this for office, retail or industrial?
Yes. Enter square footage rather than units and read the per-SF metrics. The grid and reconciliation are property-type agnostic; only the income tab’s per-unit expense inputs assume multifamily.
How was this validated?
Every formula is evaluated by an independent engine and compared against the same valuation rebuilt from scratch. Eleven outputs must agree exactly, and the test additionally proves the adjustment sequence differs from the naive additive method — so a regression that flattens it fails the build.
Version notes
| Version | Date | Changes |
|---|---|---|
| 1.0 | September 2026 | Initial release. Income and sales comparison approaches, six-comp adjustment grid, reconciliation with range, MCP comp fill. |
A note about models
Verify the formulas and methodology before relying on this or any model. If you find an error, tell us and we will fix it and publish a new version.