Real Estate Analysis: Profitability and Valuation

ImmoCheck: From Transaction Analysis to Property Listing

ImmoCheck guides you step by step through your purchasing decision. Over the course of six steps—Purchase Information, Property Details, Financing, Amortization and Taxes, Forecasts, and Rent and Costs—you enter all the relevant data, and the system instantly calculates the property’s financial metrics. At any time, you can save the property to your portfolio, calculate the results, or clear the form.

To streamline data entry, you have four import options: upload the property listing as a PDF, paste the text of the listing, upload it from a URL, or use Magic Fill, which uses AI to automatically fill in many fields based on your instructions.

In the first step, Purchase Details, enter the purchase price and square footage—the price per square meter is calculated automatically—as well as the number of parking spaces, the address, and the autonomous community. The autonomous community is a determining factor, because based on it, the “New Construction” and “Primary Residence” indicators, and the “Buyer Profile” (standard, young buyer, large family, or disability), the system applies the corresponding tax regime and automatically calculates the purchase costs. The breakdown of total purchase costs shows, as applicable, VAT and AJD (Documented Legal Acts) for new construction, or ITP for second-hand sales, along with notary fees, property registry registration, and brokerage commission. You can then add other one-time expenses—financing costs and other purchase expenses—so that the system calculates the total additional costs and the total investment amount. Finally, enter your down payment, the purchase date, and the type of property.

In the second step, "Property Details," describe the building: year of construction, number of rooms, floor, and unit, as well as the amenities (kitchen, balcony or terrace, garden, elevator, type of heating, and furnishings). You can also indicate whether the property is listed as a historic landmark, its energy efficiency class, the type of energy certificate, and energy consumption in kWh/(m²·a).

The third step, Financing, collects the details of your primary loan: amount, interest rate fixation period, effective interest rate, repayment rate, and loan type (fixed-rate mortgage, adjustable-rate mortgage, hybrid mortgage, among others), as well as details such as the renewal type and annual prepayment amount. You can add multiple loans; the summary shows the average effective interest rate, the repayment rate, the monthly debt service, and the total loan amount.

In the fourth step, "Depreciation and Taxes," you define the basis for the tax calculation: the personal tax rate (with a built-in calculator), the depreciation method (straight-line), the depreciation rate, and the portion corresponding to land, which is excluded from depreciation.

The fifth step, Forecasts, brings together the reserves and projections: the default or vacancy risk rate, the monthly maintenance reserve, and the growth assumptions—that is, the annual rent increase and the annual appreciation of the property.

The sixth step, Rent and Expenses, tracks income and recurring expenses: rent excluding utilities, parking space rent, monthly property tax (with a built-in calculator), condominium fees, pass-through and non-pass-through costs, and other expenses. Rent including utilities is calculated automatically.

For automatic data transfer, you can upload a property listing in PDF format (max. 10 MB); the AI will extract the relevant data for the initial fields: price, living area, year of construction, address, and property features. Once the initial fields are completed, the Magic Fill feature suggests plausible values for the remaining fields based on the data already entered and market reference values. The suggestions are for guidance only and should be reviewed.

The analysis yields the following calculated indicators:

• Cash flow before and after taxes, on a monthly and annual basis, taking into account rental income, management expenses, interest, reserves, and tax effects.
• Gross rental yield and rental factor, compared to market benchmarks.
• Return on equity, taking into account invested capital and external financing.
• Increase in equity due to loan repayment and expected appreciation.
• Tax status, including the tax liability or tax refund and the annual depreciation.

Projection charts are interactive graphs that show trends over selectable periods of 10, 30, or 50 years: cash flow trends (before and after taxes), equity growth, debt service (interest and principal payments), tax depreciation versus book value, and the exit analysis, which calculates projected revenue and total return for each possible sale date.

In addition, the form includes built-in calculators for more complex calculations: a property tax calculator that estimates the monthly tax amount, an interest calculator to estimate standard market rates, and a personal marginal tax rate calculator.

EnergyCheck: Analyzing and Optimizing Energy Consumption

EnergyCheck calculates a property's energy efficiency rating and identifies opportunities for improvement. The analysis is based on four factors: living area, year of construction, heating system, and final energy consumption.

The living area includes all heated rooms, expressed in square meters, excluding the basement, garage, and balcony. The year of construction affects the energy rating, as older buildings tend to consume more energy. As for the type of heating, you can choose from nine options: electric heating, gas central heating, oil central heating, heat pump, district heating, biomass, solar thermal, individual stove, and wood. Multiple types of heating can be combined. Final energy consumption in kWh/(m²·a) can be entered directly or calculated automatically; for automatic calculation, enter the actual consumption from the previous year in the unit corresponding to the type of heating (m³ of gas, liters of diesel, kWh of electricity, etc.).

The analysis provides the annual energy consumption for heating in kWh, estimated annual heating costs, consumption per square meter, energy efficiency class (from A+ to G, according to the Spanish energy certificate scale), and CO₂ emissions in kilograms per year. An efficiency chart displays all classes with their respective threshold values, and a marker indicates which category your home falls into. The reference comparison contrasts your values with the typical costs of a modern new home and a typical older home.

Starting with the lowest efficiency classes, optimization recommendations are displayed. Each measure indicates the savings potential as a percentage, annual savings, estimated investment costs, payback period, available subsidies, and CO₂ reduction. The heating system comparison contrasts your current system with an alternative, showing their annual costs, CO₂ emissions, and efficiency. The renovation simulator allows you to combine four measures—roof insulation, wall insulation, window replacement, and heating upgrades—and adjust the scope of each using a slider. The system calculates the resulting total savings, the new efficiency class, annual cost savings, and CO₂ reduction.

Finally, an AI-powered energy analysis provides a detailed assessment of the property within the context of the Spanish market—taking into account the regulatory framework (CTE), benchmark values, and renovation potential—which serves as additional guidance.

LocationCheck: Location analysis based on over 12 criteria

LocationCheck evaluates the quality of a location in two areas: socioeconomic factors and infrastructure. The result is a score from 0 to 100 for each category, as well as an overall rating.

For the socioeconomic assessment, the system requires a complete address, including the ZIP code, and evaluates six criteria:

• Unemployment rate in the locality, as a percentage. The lower the rate, the higher the score.
• Crime rate, expressed as the number of crimes per 100,000 inhabitants.
• Average income of residents, in annual figures.
• Revenue trends, expressed as the year-over-year percentage change.
• Population growth, as an indicator of a location's appeal.
• Median age, as an indicator of the age structure.

The data comes from official statistics. Without the ZIP code, the socioeconomic assessment is limited.

The infrastructure analysis is based on real-time data and examines eight areas: public transportation connections (bus, tram, subway, and commuter rail stops within a given radius), long-distance transportation connections (train stations, airports, and highway access points), educational institutions (nearby schools, universities, and colleges), leisure activities (parks, cultural centers, libraries, and sports facilities), shopping options (supermarkets, pharmacies, and specialty stores), medical care (nearby doctors and clinics), hospitals, and proximity to major cities, measured by the distance to the nearest metropolitan area.

The system automatically detects the type of locality: large city (more than 100,000 inhabitants), city (between 20,000 and 100,000), or rural area (fewer than 20,000). Depending on the type, different search radii and evaluation criteria are applied; in rural areas, for example, public transportation density is expected to be lower than in large cities.

In the settings, under “Adjust Weights,” you can modify the weighting of each criterion. The total must always add up to 100%, both for the set of socioeconomic criteria and for the infrastructure criteria by location type. Additionally, for the infrastructure criteria, you can configure the search radius and the score divisor: a smaller divisor allows you to reach the maximum score sooner.

The results page displays three score cards—socioeconomic, infrastructure, and overall—along with a summary of the analyzed data (type of location and ZIP code) and a detailed table listing each criterion with its calculated value, score (0–10), and weighting. A map shows the analyzed location, and the AI generates an analysis highlighting the site’s strengths and weaknesses, its investment appeal, and recommendations tailored to the Spanish market. The report can be exported to PDF. For a comprehensive view of the investment, it’s best to combine LocationCheck with ImmoCheck: this way, you can see both the quality of the location and its profitability at a glance.

ScenariosCheck: "What if..." simulation

ScenariosCheck calculates a property’s financial performance based on the data you enter regarding rent, expenses, financing, and taxes. Adjust the various parameters and see instantly how those changes affect cash flow and profitability. Compare up to five scenarios and properties in a comparison table and export the results as a PDF.

To create a scenario, you must first select a property: there is no option to start with a blank scenario. The selection only includes properties that have already been analyzed with ImmoCheck and are part of your portfolio, so each simulation is always based on a previous analysis. The selected property is displayed in the “Property Details” panel with its actual data, from where you can copy each value to the form field by field (using the “Use” button) or transfer all the data at once. A “Quick Summary” displays in real time—even before the calculation—the total financing, monthly income and costs, and net cash flow.

The simulation uses four sets of parameters, in addition to the scenario name and the simulation period in years (typically 10, 30, or 50). “Financing” includes the purchase price, equity, effective interest rate, repayment rate, and loan type (fixed-rate mortgage, variable-rate mortgage, mixed-rate mortgage, youth loan, self-builder loan, or interest-only loan), as well as the total term and details such as the renewal type and annual prepayment; the total loan amount and monthly debt service are calculated automatically. “Rent and Costs” includes rent excluding fees, parking space rent, community fees, pass-through and non-pass-through costs, other expenses, the maintenance reserve, property tax (IBI), and the vacancy risk rate. "Growth" defines the annual rent increase and the annual increase in value. "Taxes / Amortization" includes the amortization method (straight-line), the amortization rate, special amortization (duration in years and rate), the personal tax rate, the land tax portion, and the purchase date.

The "Live Results" panel updates instantly and displays pre- and post-tax cash flow, gross rental yield, rental factor, return on equity, and net worth accumulation. A pie chart shows the cost structure, while trend graphs illustrate cash flow, net worth growth, and debt service over the simulation period. Each scenario can be reset or saved for later comparison.

On the comparison page, you can compare up to five scenarios or properties in your portfolio. A table lists all the relevant metrics: from basic data, through rental income and management expenses, to taxes, depreciation, and net income. Positive cash flows are highlighted in green, and negative ones in red.

Documentation and follow-up processing

All four analysis tools allow you to export to PDF. The exported documents include all metrics, charts, and AI analyses. Properties from ImmoCheck can be transferred directly to the portfolio, where they remain available for ongoing management and monitoring. An AI assistant is available on all form and results pages to answer questions about specific indicators, explain calculation formulas, and offer tips on interpreting the results.

As for supported regions, LocationCheck is available in Spain and evaluates addresses using ZIP codes. The additional automatic purchase fees for ImmoCheck are tailored to Spain’s autonomous communities. ImmoCheck and EnergyCheck work regardless of location.