Broker opinion of value

In place and year one NOI with taxes reset at the price, comps on one basis, direct cap checked by sales, then a list price and range

Customize this Agent

PPTXXLSX16 steps

The problem

T12 taxes sit on a 2006 base year. The buyer pays on your price

Proposition 13 caps annual increases in a California assessment at 2 percent until the property sells, then resets it to market value, presumed to be the price paid. The tax rate is 1 percent of that value plus voter approved bond rates. Capitalize the seller's 2006 based tax bill and the value includes a saving no buyer gets, so the list price starts too high

The request

We pitch the family that has owned Project Sagebrush since 2006 on Thursday: 260 units, 1990s garden, Riverside County. Give me a BOV. Underwrite tax adjusted in place, T3 income over T12 expenses, and a buyer's year one: taxes reassessed at our price, insurance at market, market management fee, reserves. Mark the rent roll to market by unit type and size the value add left and the deferred capital from the capex history. Direct cap off closed Inland Empire sales on one NOI basis, CBRE's H1 2026 survey as the cross check, with a sales comparison check and a cap rate by NOI grid. Workbook and pitch deck with a list price and range. Never capitalize the seller's tax bill.

Sagebrush T12 Aug 2026.xlsx
Sagebrush Rent Roll 9.30.26.xlsx
Sagebrush CapEx 2006-2026.xlsx

How Axe works

ApprovedChanges asked

Your reviewApprove, or say what to change

Approved or changes

Opinion of value and modelDeck, model and audit report

Final reviewApprove the revised files

Revised opinion of value and modelRevised files and audit report

Step

Underwrite year one

Prompt

Sent to the model at this step

Build two columns beside the T12, line by line, each with the change from the T12 and the reason. Tax adjusted in place: the last three months' income annualized over T12 expenses, with the tax line reset. Buyer's year one revenue: contract rents rolling to market as leases expire through the year, at the market rents set from the comparables; loss to lease as what remains after the roll; vacancy and concessions at the submarket's current levels; bad debt at the property's own trailing rate; other income and utility reimbursements at their trailing run rate. Year one expenses: payroll at the staffing a buyer will run; repairs, turnover and contract services at trailing levels, with deferred items left to the capital deduction; insurance at a current market premium per unit for California garden product from dated published sources, set against the owner's premium; management at a third party fee on effective gross income; replacement reserves per unit per year. Property taxes are where BOVs go wrong: the T12 carries the seller's bill on a 2006 base year. In both columns enter the tax line as a formula of value, the parcel's full ad valorem rate times the concluded value plus the direct charges in dollars, and show the seller's bill beside it with NOI on both, so the gap is plain. Deliver both NOIs before ad valorem taxes, the ad valorem rate and the direct charges, each line with its source.

Uses

Property
As of date
Tied inputs
Input tie out

Produces

Underwritten noi

What you get back

PPTXOpinion of valueValue conclusion, property, market, rent and sales comparables, NOI bridge, grid and pricing

XLSXValuation modelTaxes, in place and year one NOI, comps, direct cap, sales check and grid

Audit reportOpen items first, then every correction, then each figure tied or recalculated

Make it yours

Point it at your next listing, set your house underwriting for reserves, management and insurance, or match your pitch book. Every step and every prompt can be edited

Customize this Agent

Opens a private copy of this Agent in your workspace, ready to adapt to your own sources

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