Using Valuation Software vs. Self-Designed Spreadsheets
Tools such as property valuation and real estate development software can prove to be invaluable for developer and investors. Whether you’re a property developer or investor, accurate valuations and feasibility studies will form the basis of your most successful property projects. Here, we look at the advantages and potential limitations of using valuation software or self-design spreadsheets for these purposes.
1. Specific Requirements
Some users may opt for self-designed spreadsheets to tailor the spreadsheet to their specific requirements. However, many property valuation software programs actually include features that allow a large degree of flexibility on a spreadsheet-like interface. These features will allow you to input your own factors to complicated reports and formulas.
2. Advanced Features
There’s really no substitute for professional valuation and feasibility software when it comes to access to advanced features such as sensitivity modelling, key performance indicators, and visualising different scenarios.
Using professional software creates peace of mind and ensures accuracy. It also simplifies the process on your behalf, allowing you to obtain calculations instantaneously without worrying about errors or the integrity of the reports being generated.
3. Updates and Support
With a do-it-yourself spreadsheet, you’re on your own for support and software updates. When you purchase professional real estate viability software, you’re purchasing the guarantee of quality in addition to the actual software itself.
Don’t underestimate the importance of ongoing support and features such as access to technical articles and case studies, as these can provide insights and important know-how that can boost your understanding of any potential investment or project.
4. Accessing Industry Standard Practice
The best software packages reflect the best industry standard practice. In contrast to self-designed spreadsheets, developers and investors who use professional programs are accessing valuation, feasibility and development methodology as well as the program itself.
5. Report Generation
While a standard DIY spreadsheet can allow you to create reports for your team, most investors and developers are looking for something that enables them to generate professional reports that they’re happy to share with banks, financing sources, regulatory authorities, accountants, and solicitors.
Good software packages have powerful, inbuilt report generation tools that support the creation of professional reports at one touch. This not only helps you make the best impression, it’ll save you time and money.
6. Which Saves More Time?
Instead of having to start from scratch every time, using a professional software program allows you to get started immediately. It’s a good idea to choose a program with a user friendly interface.
Once you’ve mastered the basics, you’ll be able to use the program quickly to generate effective calculations and make informed and accurate decisions for any number of properties.
7. Exporting Features
While spreadsheets can be quickly cut and pasted, the best property software programs allow user to export to programs such as Microsoft Excel or Word, and/or to integrate their files for use on other related software packages.
This means developers and investors can potentially asses the feasibility of a property on one software program and then access that same data on a compatible real estate development program without having to input the data twice.