Method and system for property valuation in an on-line computing environment

• US 20040073508A1
• Filed: 01/22/2001
• Published: 04/15/2004
• Est. Priority Date: 11/20/2000
• Status: Active Grant

• Current Assignee: GE Capital US Holdings, Inc. (General Electric Company)
• Original Assignee: General Electric Capital Corporation (General Electric Company)
• Inventors: Foster, Paul, Shea, David, Rieger, Robert
• Granted Patent: US 7,130,810 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 10/06375 Prediction of business process outcome or impact based on a proposed change
• CPC Class Codes: G06Q 30/0206 Price or cost determination based on market factors
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

The present invention relates to providing on-line tools for property-related on-line calculations. A distributed computer network can enable a user to access multiple databases and to obtain comparables data related to a property of interest for use in calculations. A user can access the latest, broadest set of relevant property data and to select relevant comparable values quickly and with minimal manual intervention. An on-line property management environment can comprise a distributed computer network coupled to numerous client computers, a property services server platform connected to a local data base, and numerous property information databases. A valuation tool, lease improvement calculator, refinancing calculator, capitalization rate calculator, mortgage and amortization calculator, and an affordability calculator can enable a user to make multiple property-related on-line calculations.

Claims

1. A computer-implemented system for determining a valuation of a real estate property in an on-line computing environment, comprising:

a distributed computer network comprising a property management services server, databases and client computers, each coupled to a computer network;

the property management services server hosting a valuation program module for calculating a valuation for a selected real estate property,

the databases storing real estate property-related data, including property comparables data for multiple real estate properties, and

the client computers operable by users to access the valuation program module operating on the property management services server and to input predetermined information about the selected real estate property in support of a valuation calculation for the selected real estate property,

wherein, responsive to the predetermined information about the selected real estate property, the valuation program operating on the property management services server accesses the property data in at least one of the databases via the computer network to obtain comparables relevant to the selected real estate property, calculates the valuation for the selected real estate property, and presents the valuation and the comparables for the selected real estate property.

2. The system of claim 1, wherein the client computers are operated by a plurality of users selected from the group, comprising:

a tenant evaluating the selected real estate property for a potential purchase or lease;

a lender for supporting property financing requirements for the selected real estate property;

a site visit agent for supporting on-site review and analysis of the selected real estate property;

a property specialist for providing property-related expertise in connection with the selected real estate property; and

a deal agent for screening, negotiating, and closing property-related transactions.

3. The system of claim 2, wherein the property specialist comprises:

property appraisal specialists;

property engineering specialists; and

property environmental specialists.

4. The system of claim 1 or 2, wherein the property management services server further comprises program modules for budgeting, financing, and forecasting of property payments for real estate property and property valuation tools.

5. The system of claim 4, wherein the property valuation tools comprise:

property valuation tools for valuing an asset for the selected real estate property;

payback calculation tools for determining profit from lease improvements, capitalization rates of property payments, and refinancing savings for the selected real estate property;

cash flow calculation tools for determining payment and loan amounts for the selected real estate property; and

space calculation tools for determining the amount of required office space in connection with the selected real estate property.

6. The system of claim 5, wherein the payback calculation tools comprise:

a lease improvement calculator for determining how much standard rent will support building standard improvements for the selected real estate property and how much profit is available from the standard improvements;

a direct capitalization calculator for determining a capitalization rate of payments for the selected real estate property; and

a refinancing calculator for determining refinance loan savings and breakeven terms for a property loan.

7. The system of claim 6, wherein the cash flow calculation tools comprise:

a mortgage and amortization calculator for determining mortgage payments, principal payments, and interest payments for the selected real estate property; and

an affordability calculator for determining a loan amount for the selected real estate property.

8. An on-line method for calculating an estimate of the value of a property, comprising;

entering property details into a program module operating on a server via a selected one of a plurality of clients in a distributed computing environment;

obtaining comparable data for the property by accessing databases accessible in the distributed computing environment;

entering capital expenses, mortgage details, and investment details for the property into the program module via one of the clients operating in the distributed computer environment

determining a value for the property based on the property details, the comparable data, the capital expenses, the mortgage details, and the investment details; and

presenting a report indicating the value for the property.

9. The system of claim 8, wherein the mortgage details for the property comprise:

a payment for the property;

a rate type for the property; and

a term for the property.

10. The system of claim 9, wherein the investment details for the property comprise:

a price for the property;

a future value for the property; and

a discount rate for the property.