Cap Rate Analysis & Market Comparison Prompt
Prompt
Analyze cap rates to inform valuation and pricing. [PASTE: Target property details, comparable recent sales, market context] Steps: 1) Calculate cap rates for comps 2) Analyze comparable pool 3) Calculate target property cap rate 4) Compare to offer price 5) Assess cap rate trends 6) Consider quality/condition 7) Model sensitivity Output: Cap rate analysis table, market median/range, target positioning, sensitivity analysis, recommendation.
Why it works
Market-based cap rates prevent overpricing. Cap rate trends inform timing and refinance value.
Watch out for
Short-term volatility can mislead. Use minimum 5-10 comps. Conservative cap rates protect downside.
Used by
Finance TeamsData Analysts