how to write valuation reports - blakspot

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HOW TO WRITE VALUATION REPORTS

WITH BLAKSPOT

Guide to consistently creating high quality valuation reports using BlakSpot.

BlakSpot provides layers and layers of reusable content that allows property

valuers to write high quality valuation reports with consistent livery and with the

huge amount of flexibility that commercial property valuations demand.

Author: Rob Wade Client: Blak Spot Pty Ltd Version/Status: v1.0 - Final as at 29/11/2017

BlakSpot - How to Write Valuation Reports

Guide to consistently creating high quality valuation reports using BlakSpot. Page 1 of 17 v1.0 - Final as at 29/11/2017

DOCUMENT CONTROL SHEET

AUTHOR AND CONTRIBUTORS

Name Role Contact Details

Rob Wade Software Developer [email protected] 0412 79 49 59

CHANGE HISTORY

Date Author/Contributor Affected Section Description of Changes

29/11/2017 Rob Wade All Initial Draft

AUDIENCE

This document is intended for:

• Commercial property valuers and their assistants

The contents of this document may be legally privileged or subject to copyright. It may be unlawful to

disclose, use, or copy all or part of this document. If you have received this document in error, please

advise the author and then delete it.

SIGN-OFF HISTORY

Date Reviewer Outcome Review Details Location



CONTENTS 1. Before You Begin ............................................................................................................................. 3

1.1 Prerequisites ........................................................................................................................... 3

1.2 Understanding Valuation Report Contents ............................................................................. 3

2. The Basic Steps ............................................................................................................................... 4

2.1 Creating a Valuation ................................................................................................................ 4

2.2 Filling-In The Details ............................................................................................................... 5

2.3 Filling-In The Contents ............................................................................................................ 9

3. More Advanced Options ................................................................................................................ 14

3.1 Changing the Contents Skeleton .......................................................................................... 14

3.2 Creating Market Overviews and Complex Content ............................................................... 15

3.3 Managing Common Values ................................................................................................... 17



1. BEFORE YOU BEGIN

1.1 PREREQUISITES

BlakSpot a web application that requires a modern web browser such as Chrome, Edge, Firefox, or

Opera. The valuation report screens are designed for desktop computers with standard high definition

(1920x1080) displays. Smaller screen sizes can be used however some functionality such as the

report’s preview pane may be hidden.

1.2 UNDERSTANDING VALUATION REPORT CONTENTS

Commercial property valuation reports consist of data sourced from many places so it’s important to

know how it all comes together into a single document. Many layers are used for maximum efficiently:

1. A template with a good structure is copied and its contents made ready to be filled-in

2. The property and job data are combined with the valuer’s analysis spreadsheet data to fill-in

the report’s executive summary

3. Sections of various types fill-in the body of the report with data from many places

4. The report is download as a Microsoft Word document for final polish and printing with addenda

Valuation Details Valuation Sections

(Contents)

Job, Client & Instructing Party

BlakSpot Property Record

Valuer’s Spreadsheet Model

Evidence Lists

Google Maps

Photos

Signatures

Analysis Data & Comments

Valuation Template

Template Contents

1

2

3

4

Common Values



2. THE BASIC STEPS

2.1 CREATING A VALUATION

New valuation reports can be for a job, a property, a job and a property, or not related to either a job or

a property at all. When you create a valuation by clicking “Add Valuation”, BlakSpot will try to

automatically link to the job and a property.

1. Select your starting point by opening a job record, a property record, or any other view in

BlakSpot

2. Click “Valuations Add Valuation”

3. Select a starting point – a valuation template with a good structure to be copied

Valuation Template – a starting point for creating valuation

reports of a specific type of property such as a multi-tenant

building, vacant land, etc. Templates contain the report skeleton

and all content that is not specific to a job or property.

4. Fill-in (or confirm) the report details (see section 2.2 below):

• Dates and methodology

• Job and property

• Parties, interest and purpose

• Valuer and qualifications

• Property details and owner

• Bank specific options

5. Download, complete, and upload the valuer’s spreadsheet model

Valuer’s Spreadsheet Model – the valuation firm’s intellectual

property. A spreadsheet that commercial valuers use to analyse

a property and create contents for the report such as a tenancy

schedule and outgoings.

6. Fill-in (or confirm) the report contents (see section 2.3 below)



2.2 FILLING-IN THE DETAILS

Valuation Details – data to be included in the valuation report’s

executive summary and introductory pages.

The first tab of the BlakSpot valuation screen contains all the crucial data such as the date of valuation,

the valuer, and the adopted value. There’s a lot of information, so the details are grouped for simplicity.

2.2.1 DATES AND METHODOLOGY The dates and methodology group contains fundamental details that dictate how the rest of the report

is written. Specifically:

• Vacant land is valued differently to improved land

• Owner-occupied/vacant possession is valued differently to tenanted

• The direct comparison approach is different to the discounted replacement cost approach

These fundamental differences usually mean that the report’s skeleton changes. That is, section

headings are added/removed based on these options.

Tip: Use templates to simplify the skeletal changes. Specifically, at a minimum, have a template for

vacant land, another for owner occupied/vacant possession, a third for single tenant and a fourth for

multi-tenant properties.

2.2.2 JOB DATA A valuation report typically will have a client, an instructing party, relying parties, and instructions. By

default, these values are entered into the BlakSpot job but, because commercial valuation reports are

often tailored to a client’s preferences, all the job details can be overridden within the valuation details.

1. Select the job within the “Job, Property & Model” group

2. Fill-in (or confirm) the job data within the “Parties, Interest & Purpose” group



Tip: If the job is amended its new contents can be copied into the valuation by clicking “Synchronise”.

2.2.3 PROPERTY DATA The BlakSpot property record contains the site area, building description, zoning information, etc. By

default, these values are entered into the BlakSpot property record but, because commercial valuation

reports are often tailored to a client’s preferences, much of the property information can be overridden

within the valuation details.

1. Select the property within the “Job, Property & Model” group

2. Fill-in (or confirm) the property data within the “Property Details & Owner” group



Tip: If the property record is amended its new contents can be copied into the valuation by clicking

“Synchronise”.



2.2.4 VALUER’S SPREADSHEET DATA BlakSpot contains a modified1 version of the valuation firm’s property analysis spreadsheet (also known

as the “model”). This spreadsheet allows the valuer to do their modelling in whichever way is

appropriate to the job at hand using the tools with which they are familiar.

1. Download the blank model from the “Job, Property & Model” group

2. Complete the modelling

3. Within the black (BlakSpot ...) tabs, hide rows and columns (as desired)

4. Upload the model into the “Job, Property & Model” group

The highlighted Missing Content: “Analysis Spreadsheet” paragraphs will be replaced by tables that

match those in the model.

Tip: BlakSpot has been developed as an enabling product – not a prescriptive solution. As such, it does

not attempt to force highly experienced property valuers into performing their job in a particular way. If

a new table is required for a valuation report, the {{ExcelRange_...}} keyword can be used to include

the table in the valuation report.

1 Modifications so the model’s contents can be easily be read by BlakSpot



2.3 FILLING-IN THE CONTENTS

Valuation Sections (Contents) – the body of the valuation report

– everything below the first page of the executive summary.

The second tab of the BlakSpot valuation screen contains the sections of the valuation report that

appear below the first page of the executive summary. It uses a hierarchy to:

1. Simplify navigation

2. Instruct BlakSpot to format the contents appropriately

For example, the Knight Frank SWOT Analysis section is designed to display each sub-section

within a table. The heading is bold with a grey background and the bullets are left-aligned.

2.3.1 PARAGRAPHS A little background information… BlakSpot is a web application so the data entered into it is in HTML

format. The valuation report is a Microsoft Word document (DOCX format) and the two aren’t

compatible. In fact, they’re not even close to being compatible. Web applications have many benefits

that Microsoft Word documents do not and vice-versa so BlakSpot has been designed to provide as

much flexibility as possible without creating a user interface so cumbersome that it’s impossible to use

and without trying to create a new version of Microsoft Word within a web application.

Most valuation sections allow a paragraph of text (or more) to be entered by the valuer.

1. Expand the contents to the display the section

2. Click on the pencil icon

3. Enter contents using the rich-text editor



4. Use common values to reduce typing

5. Use BlakSpot keywords to prevent inconsistencies and to reduce typing

For example, the adopted value written in words (not digits) is the “Long Format”



2.3.2 PHOTOS Photos can be embedded into paragraphs (see 3.2 Creating Market Overviews and Complex Content

on page 15) but, for simplicity BlakSpot includes an “Image List” section type that automatically lays out

the photos with captions and optional pointers in the valuation report.



3. Select the property’s images

4. Optionally, change the photo captions

5. Optionally, add pointers

6. Optionally, add paragraphs above and below

Tip: If there’s only one photo selected, the valuation report will display a larger image in the centre of

the page. If there’s more than one, BlakSpot will lay them out two to a row. All images are assigned a

standard width so portrait-aligned photos will be larger than landscape-aligned photos.



2.3.3 EVIDENCE LISTS Evidence lists can be created very easily in BlakSpot so, while it’s possible to use the same list in

multiple reports, it’s highly advisable to create new evidence lists for each and every valuation.

1. Create your evidence list by:

• Searching for the rents or sales

• Copying rents or sales from an existing list

• Customising the columns



4. Select the evidence list

5. Optionally, add paragraphs above and below

6. Optionally, open the evidence list in another tab to:

• Customise columns

• Adding comparisons

• Insert page breaks

Tip: The evidence lists can be downloaded separately or within the valuation report. There’s no point

inserting page breaks until all the commentary has been completed.



2.3.4 OTHERS BlakSpot supports many valuation section types. Each one has a data entry screen and an algorithm

used by BlakSpot to write the data into the valuation report.



3. MORE ADVANCED OPTIONS

3.1 CHANGING THE CONTENTS SKELETON

With the exception of “Executive Summary (Cont.)” and “SWOT Analysis” all sections within the

“Contents” tab can be edited, removed, added to, and reordered.

1. Click on the burger menu when no sections are being edited

2. Select an option

3. Refresh the page to see the corrected heading numbers

Tip: The section order is managed by BlakSpot within the database. Because it is possible that a

colleague may have changed the valuation skeleton without your page being updated, it is always a

good idea to refresh the page before and after making changes structural changes. BlakSpot works

with the latest data in the database (which may differ from what’s on your screen).



3.2 CREATING MARKET OVERVIEWS AND COMPLEX CONTENT

Shared Files – A special folder to contain files that are not

property-specific. The best place to upload graphs, logos and

other images that can be used in valuation reports

Continuing on from section 2.3.1 above, the rich text editor has functionality that allows suburb, sector

and market overviews to be nicely presented in the valuation report.

1. Enter the content without images:

• Use headings as necessary

• Add a space to separator

paragraphs (because empty

paragraphs are removed)

2. Insert Text Wrapping Breaks below the

paragraphs that are to be displayed

alongside the images



3. Insert images at the start of the paragraph it relates to and set format to wrap the text alongside

4. Select column cells and select “Cell Properties” to specify widths (percentages are best)



3.3 MANAGING COMMON VALUES

Common Value – a phrase or more content that is commonly

used when filling-in part of a valuation

Many of the values entered into a valuation report have been configured to allow text to be selected

rather than typed. BlakSpot uses an algorithm to list the most commonly used values at the top of the

list. So, for example, if most of the valuation firm’s work is for the National Australia Bank, the rather

long-winded name will be at the top of the list.

To create/edit common values:

1. Click Select Common Value

2. Click Add New

3. Type the content

4. Set its frequency as appropriate

To configure a valuation section to use a specific common value:

1. While editing the valuation section’s contents click “Show Section Information”

2. Specify the “Common Value Code” noting that the code usually matches the Section

Heading/Title but can be anything. Examples of common codes out-of-the-box are:

• Critical Conditions

• Ethics Paragraph

• Instructions

• Key Points

• Strengths

• Suburb/Sector Market Overview

But, really, as stated above, the codes can be anything – whatever value make sense to your

valuation firm or you, the person writing the report.

how to write valuation reports - blakspot

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