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Avenue One Guide

Here is an article explaining the valuation process for Avenue One, particularly extraction in Toolkit and how to export the pdf we will be using. 

Product: Full Desktop (No Inspection)

Deliverables:

  1. AIV (Vacant Site Value)
  2. ARV (Subject to Completion of New Construction)
  3. Market Rent (3rd Party Report)

1. Certification Overlay

The following certification, extraordinary assumptions, and limiting conditions will already be added to your report upon assignment [please review and before starting one of these assignments]:

Certification, Extraordinary Assumptions, and Limiting Conditions – AvenueOne AIV, ARV, and Market Rent

The appraiser certifies that this report has been prepared in accordance with USPAP and the stated scope of work. In addition to the market value opinion of the subject property, this report includes supplemental analyses requested by the client as follows:

1. As-Is Site Value (AIV)

The appraiser has developed an opinion of the vacant site value by employing a site value extraction method. This analysis considers the relationship between land and improvements by deriving site value from improved sales through the allocation of depreciated cost. Specifically, the cost new of the improvements was estimated, accrued depreciation was deducted, and the residual indicated site value was extracted.

The supporting data, calculations, and graphics for this extraction analysis are included in the addendum. The resulting AIV conclusion represents the appraiser’s opinion of the site value as if vacant.

Extraordinary Assumptions and Limiting Conditions

The opinion of vacant site value relies on cost and depreciation estimates from sources deemed reliable. If these inputs are materially inaccurate, the indicated site value may differ.

2. Market Rent

At the client’s request, a market rent indication has been included in this report. This rental estimate was obtained from RentRange®, a third-party data provider. The RentRange report and its conclusions are attached as an addendum.

This rent indication has not been developed by the appraiser, does not constitute an appraisal or appraisal service under USPAP, and is not covered under the appraiser’s certification or signature.

Extraordinary Assumptions and Limiting Conditions

The appraiser has not independently verified or developed this rent conclusion. This rental estimate is presented for the client’s convenience only and should not be relied upon as part of the appraiser’s signed certification of value.

3. After-Repair Value (ARV)

The appraiser has provided an opinion of market value “subject to completion” of the proposed new construction. This conclusion was developed without an on-site inspection of the subject property, based on review and analysis of the provided plans, specifications, elevations, and upgrade package. The ARV represents the market value of the subject property as if complete and assumes the improvements will be constructed substantially in accordance with the reviewed materials.

Extraordinary Assumptions and Limiting Conditions

The ARV opinion is conditioned upon the subject being completed in accordance with the reviewed plans, specifications, elevations, and upgrades. If construction materially deviates from these documents, the ARV conclusion may not be reliable. No representation is made as to workmanship, quality, or latent conditions of the completed improvements.

2. Site Value Extraction Using Appraiser Toolkit

Tool: Appraiser Toolkit (all AIV analyses must be performed within Toolkit).

Training Resource: How to Perform Site Value Extraction in Toolkit (Training Video & Documentation)

Process Overview:

  1. Identify Improved Sales: Select comparable improved properties in the subject’s competitive market.
  2. Cost Approach Setup:
    • Estimate replacement cost new of improvements (via cost service data, Toolkit auto-calcs, or other reliable source).
    • Deduct accrued depreciation (physical, functional, external).
  3. Residual Site Value: The residual amount after deducting improvement value from sale price = extracted site value.
  4. Repeat Across Comps: Perform this analysis across several sales to confirm supportable site value indications.
  5. Reconcile: Develop a reconciled opinion of site value, supported by Toolkit outputs and charts.
  6. Include Addendum: Export the Toolkit output PDF and insert into the addendum of the appraisal report as supporting documentation.

If errors are found in QC, the revision request will be: “Please review the Site Extraction training video and redo the analysis using Toolkit.”

3. Market Rent Guidance

  • Source: RentRange® – a third-party rental analytics provider.

  • How You’ll Receive It: The RentRange report will be attached to the order documents section upon assignment by the client.

  • Appraiser Action:

    • Review the report for general market context.
    • Reference it in your certification overlay (see section above).
    • Do not attempt to replicate or verify RentRange methodology.

  • Important Disclaimer (to be included in all reports):

    “The RentRange report is not part of this appraisal and should not be considered under the appraiser’s certification. This data is provided for the client’s convenience only.”

4. ARV Development

  • The ARV (After-Repair Value) must be developed “subject to completion” using provided:
    • Plans
    • Specifications
    • Design/Model information
    • Upgrade package
  • Appraisers should carefully analyze and comment on the upgrade option package in their reconciliation.
  • Include at least one new construction or newer construction sale outside of the subject’s development as a comp.

5. Summary – Appraiser Deliverables

  • AIV: Site value extraction completed in Toolkit with supporting PDF in addendum.
  • ARV: Market value opinion “as complete,” developed from plans/specs/upgrades, with appropriate assumptions.
  • Market Rent: RentRange report attached; disclaimer inserted per certification overlay.