Quick-Check Screener

Screens an asking price with four quick checks, price per unit, price per square foot, gross rent multiplier, and implied cap rate, each flagged against a market benchmark. Inputs are the asking price, unit count, building area, gross annual rent, NOI, and the comparable market figures for each screen.

Interactive Tool

The deal

Asking price

Number of units

Building area

Gross annual rent

Net operating income

Market benchmarks

Comp price / unit

Comp price / SF

Comp GRM

Comp cap rate

The four screens

Price / Unit

$300,000

comp $250,000 · above market

Price / SF

$300

comp $250 · above market

GRM

15.0x

comp 10.0x · above market

Implied Cap (NOI ÷ Price)

4.58%

comp 5.50% · above market

Market-indicated value, two independent reads

Comp price/unit × 120 units

$30,000,000

NOI ÷ 5.50% comp cap

$30,000,000

Asking price vs. unit-based value

+20.0%

Asking price vs. cap-based value

+20.0%

When both reads point to the same value and the asking price sits a clear margin above it, the quick checks agree, the full model should explain the premium, not ignore it.

Learn the concept

This calculator comes from the free Real Estate Finance course, where the concept is taught with readings, worked examples, and practice questions.

Open Real Estate Finance

Built by Devon Coombs, CPA, MBA, Teaching Professor of Finance at Santa Clara University.