Definitions

The valuation date is the date on which we evaluated the property.

We use a specific area, like a neighborhood, to figure out the average price of properties through a Comparable Market Analysis. However, sometimes we don’t have enough data for that neighborhood, so we broaden our analysis to a larger area called the Local Government Area (LGA). While this method is not as precise as the neighborhood level, it gives us more examples to compare. It might not be as accurate for a specific neighborhood, but it still provides strong clues about average property prices that we can trust.

Imagine trying to find out how much a pizza costs in your favorite local neighbourhood pizzeria. If you don’t have enough information from just that pizzeria, you might check the prices at all the pizzerias in your Local Government Area. It might not be as accurate for your favorite spot, but you’ll get a good idea of the average pizza price in your town.

Similar to Sales Level but we assess for the Estimated Rental Value.

This is the price the property has been initially listed at by the agent.

We use advanced technology to accurately predict property prices by collecting detailed information about properties, such as location, size, condition, and amenities. We then analyze this data using powerful machine learning algorithms like Linear Regression, Random Forest, and Tree Ensemble, which help us understand how different features affect property prices. By training our models with historical data, we ensure they learn patterns and relationships that influence prices. We rigorously test these models for accuracy and then use them to predict fair market price estimates for new properties. Please note that the accuracy of our valuations are based on the data provided by the listing agent.

This number shows how many similar properties were used to analyze the property you’re interested in. It helps find the Market Median and growth rate for that property compared to others in the market. If the number is higher, it means the calculated value is likely more accurate.

Example: Let’s say you want to know the value of a house. If the analysis looks at 20 houses similar to the one you’re interested in, the precision is higher compared to analyzing only 5 similar houses. The more houses considered, the better the estimate of the property’s value.

This estimates the future market trend of a property’s price using predictive analytics 

This is the amount of money the property makes in rent each year. However, because it comes from the agent or seller, we are unable to independently verify this figure. Still, sharing this number is useful as buyers can compare it to market rates to see if there’s room for improvement. If a listing has this this number, we recommend double-checking it by talking directly to the agent.

In cases where an agent forgets to mention how much the property is rented for each year, it could be because the property is currently not occupied. In such situations, we take a specific approach. We estimate the approximate rental value of the property by looking at similar properties nearby that are currently being rented out. This helps us come up with a reasonable guess for how much the subject property could be rented for.

For example, if there’s a house similar to the one in question, and it’s being rented for ₦500,000 per year, we might use that information to estimate the rental value for the empty property in the same area. This way, even if the current rent isn’t disclosed, we can still make an educated estimate based on what similar properties are renting for.

Imagine you own a block of apartments in Lagos, and each apartment could bring in ₦50,000 per month. The potential revenue (if all apartments were rented at full price) would be ₦500,000 (10 apartments * ₦50,000).

Now, if currently, only 9 out of 10 apartments are rented, and you’re making ₦450,000, your economic occupancy ratio would be ₦450,000 / ₦500,000 = 0.90. This is good because you’re earning 90% of what you could potentially make.

However, if you were only making ₦400,000, then your economic occupancy ratio would be ₦400,000 / ₦500,000 = 0.80. This might indicate there’s room for improvement or that there are some management challenges affecting the property’s performance.

The Gross Rent Multiplier (GRM) is a tool in real estate used to figure out if a property is a good investment, especially for making money through renting. In Nigeria, you find it by dividing a property’s value by the money it makes in rent each year. Let’s say a property is worth ₦10,000,000 and brings in ₦500,000 in rent annually:

GRM = ₦10,000,000 / ₦500,000 = 20

If the GRM is lower, like in this example, it means you might get your investment back faster. This could make the property more interesting for investors. People use GRM to compare different properties and see what’s happening in the market. But remember, it’s a simple tool. For a full picture, you should also think about other things like expenses and if the property’s value will go up over time.

Similar to Sales Comparables.

This estimates the future market trend of a property’s rental value using predictive analytics 

Gross Yield is like looking at the full picture of how well a real estate investment is doing before considering things like taxes or expenses. It’s a way to see the overall performance.

Here’s an example: Imagine you buy a house for ₦100,000, and you expect to get ₦10,000 a year from renting it out. To find the Gross Yield, you’d divide the expected rent (₦10,000) by the property’s cost (₦100,000). In this case, the Gross Yield would be 10% because (₦10,000 / ₦100,000) * 100 equals 10%.

So, Gross Yield is a percentage that shows you how much money you’d make from renting the property compared to what you paid for it, without considering things like taxes or other costs. It’s a quick way to get an idea of the investment’s potential return.

Reversionary yield in real estate is the expected profit when the current rent of a property catches up with its projected rental value. To calculate this yield, you divide the projected rental value by the market median value.

Let’s take an example: Property A has a market median value of ₦10 million, and the projected rental value is ₦500,000. To find the reversionary yield, you divide ₦500,000 by ₦10 million, resulting in a 5% yield. This means that once the rent reaches the projected value, the property is expected to yield a 5% profit.

Imagine you have a picture that shows how much a property is worth for each square foot of space it has. To figure this out, we use a particular method of calculation. This helps us compare one property to another of similar size.

For example, let’s say we have two houses. House A is 1,000 square feet and is worth ₦200,000. House B is 1,200 square feet. To compare them, we look at the assessed value per square foot.

House A: ₦200,000 / 1,000 sq. ft. = ₦200 per sq. ft.

House B: ₦200,000 / 1,200 sq. ft. = ₦166.67 per sq. ft.

So, even though House B is bigger, it’s worth less per square foot than House A. This helps us understand the value of each square foot of space in different properties.

These are the number of healthcare facilities that we have successfully been able to locate within a one mile radius of the target property. These include but are not limited to facilities such as hospitals, health clinics, doctors offices etc.

For example: [5 : 0.33m : 0.69m] means that there are 5 healthcare facilities nearby with the closest being 0.33 miles away and the furthest being 0.69 miles away from the target property. 

These are the number of educational institutions that we have successfully been able to locate within a one mile radius of the target property. These include but are not limited to facilities such as schools, colleges, universities, and training facilities etc.

For example: [1 : 0.33m : 0.33m] means that there is 1 educational institution nearby with the closest being 0.33 miles away and the furthest being 0.33 miles away from the target property. 

These are the number of public services that we have successfully been able to locate within a one mile radius of the target property. These include but are not limited to facilities such as parks, government offices, emergency services, social services, places of worship, banks, ATMs, and leisure canters etc.

For example: [22 : 0.15m : 0.94m] means that there are 22 public services nearby with the closest being 0.15 miles away and the furthest being 0.94 miles away from the target property. 

These are the number of shopping services that we have successfully been able to locate within a one mile radius of the target property. These include but are not limited to facilities such as restaurants, cafes, shopping malls, and retail stores,  etc.

For example: [9 : 0.25m : 0.84m] means that there are 9 shopping services nearby with the closest being 0.25 miles away and the furthest being 0.84 miles away from the target property. 

These are the number of public transport areas that we have successfully been able to locate within a one mile radius of the target property. These include but are not limited to facilities such as airports, bus stops, ferries, subways, and train stations  etc.

For example: [2 : 0.36m : 0.55m] means that there are 2 transport areas nearby with the closest being 0.36 miles away and the furthest being 0.55 miles away from the target property. 

These are the number of entertainment centres and venues that we have successfully been able to locate within a one mile radius of the target property. These include but are not limited to facilities such as clubs, beaches, cinemas, amusement parks, resorts, theatres, golf courses, museums, stadiums, and art centres etc.

For example: Not Available means that we have not been able to find any entertainment centres and venues nearby.