The Real Estate Valuation Tool for Excel calculates and analyzes expected cash flows from one or more real estate investments. It can be used to evaluate a single real estate investment or to compare one property to another.

Rather than relying on subjective market factors as you might if you were looking to pay the lowest price for your primary residence, the Real Estate Valuation Tool for Excel values the discounted cash flows generated by the property. This is an excellent way to compare one investment property to another.

The model is also flexible, allowing the practitioner to vary the analysis based on variables such as: expected return on the overall market, assumed purchase and sales prices of the individual properties, and the proportion of various expenses relative to rents and receipts. Changes made to one part of the model automatically flow through to the other parts, ultimately affecting the overall valuation of the property.

When comparing two properties, a summary of the comparison automatically displays at the bottom of the analysis. It highlights the property that represents the more favorable investment opportunity based on higher net present value.

Date and number fields may be re-formatted by the user (using Excel's built-in formatting capabilities) to accommodate non-US conventions.

The Real Estate Valuation Tool for Excel is an excellent tool for valuing stand-alone investment properties and comparing one property to another. It provides a detailed valuation while remaining flexible and easy-to-use.

This spreadsheet was developed by a CFA charterholder.

• Save time by using a pre-designed template as a basis for your analysis.

• Reduce formula errors caused when practitioners try to build real estate valuation models from scratch. The calculations are already done for you. Simply enter the information requested by the model, tweak it to match your expectations on the direction of the overall market, and view the completed valuation.

• Save money by spending your time on running your business or analyzing the results of the real estate valuation rather than spending countless hours building a model from scratch.

• Evaluate stand-alone investment properties or compare one property to another.

• Model focuses on cash flows rather than subjective factors. This is very important when comparing one investment property to another.

• The model is fully-editable. Source code and calculations are not blocked or hidden behind passwords, as you may find in other companies' templates. Anyone with a basic knowledge of Excel can expand the capabilities of the model to fit their needs.

• The model is easy-to-use and flexible. Cells requiring input are clearly highlighted within the model. The practitioner has the ability to influence the valuation by changing key variables within the model.

• Date and number fields may be re-formatted by the user (using Excel's built-in formatting capabilities) to accommodate non-US conventions.

• The model was developed by a financial professional (CFA charterholder).

Our software runs on any version of Microsoft Excel from 97-2007.

All recent Microsoft operating systems are supported, including Windows 95, Windows 98, Windows 2000, Windows ME, Windows CE, Windows XP and Vista. Windows Mobile 5.0 and 6.0 are also supported, provided you have Microsoft Excel or Documents-To-Go installed on your mobile device.

It is also fully-compatible with MAC OS and OS X. You must be running Excel 2004 or 2008 for Mac.