An appraisal conclusion comes from judgment, market knowledge, research, analysis, and reconciliation. The workfile holds the evidence behind that process. The article covers what an effective workfile looks like.

We spend most of the time on four numbers: market rent, the expense recovery method, the exit cap rate, and the discount rate. Those four deserve the attention. But between market rent today and terminal NOI ten years out, the model runs through seven more assumptions that rarely get the same debate: rent growth, expense inflation, absorption, renewal probability, downtime, free rent, and selling costs at exit.