Property Valuation

Fabrica provides valuation information to help buyers, sellers, and lenders make informed decisions. This data is displayed on property pages and included in NFT metadata for visibility across marketplaces.

Valuation Sources

Fabrica presents multiple data points for each property:

Each source provides different context for understanding a property's potential value.

---

Estimated Value

Fabrica publishes its own AVM (Automated Valuation Model) and combines it with third-party services to provide estimated market values for properties. These estimates are generated using:

• Market data and comparable sales
• Property characteristics and location
• Advanced algorithms and modeling

Confidence Percentage: Estimates include a confidence level indicating how reliable the estimate is for that specific property. Higher confidence typically indicates more comparable data was available.

Public oracle: Fabrica's estimated values are also published as EIP-712 signed price quotes via a public API endpoint. The signed quotes are consumable by lending pools, vault curators, analytics tools, and any other party that wants a verifiable reference price for tokenized parcels. The same data that powers the property page is the data that powers the on-chain oracle.

• For developers and integrators: see Price Oracle for endpoint, signing scheme, and on-chain integration guidance.
• For property owners: the oracle is paid for by an annual subscription on the property side, similar to a property tax assessment or title insurance premium.

Important Limitations

Estimated values are starting points for evaluation, not official appraisals.

Buyers and lenders should understand:

• Land valuation is inherently difficult and imprecise
• Estimates can vary significantly between providers
• Values change based on market conditions
• Property-specific factors may not be captured in algorithms
• Remote or unique properties often have lower estimation accuracy

Always conduct due diligence:

• Review comparable sales in the area
• Consider the property's specific characteristics
• Consult local real estate professionals for significant transactions
• Obtain a formal appraisal when needed

---

Assessed Value

The assessed value comes from the local tax assessor and is used to calculate property taxes. Key points:

• Not Market Value: Assessed values are often significantly below actual market value
• Update Frequency: Jurisdictions update assessments on different schedules
• Assessment Limits: Many states limit how much assessed values can increase annually

Assessed value is useful for understanding tax obligations but should not be used as a primary indicator of market value.

---

Last Sale Price

The most recent recorded sale price at the county provides historical context:

• Shows what a buyer actually paid for the property
• May be outdated depending on when the last sale occurred
• Does not account for market changes since the sale
• Some transactions (gifts, foreclosures) may not reflect true market value

---

Valuation in NFT Metadata

Property valuation data is included in the token's metadata, making it visible on:

• The Fabrica marketplace
• External NFT marketplaces like OpenSea
• Any application that reads token metadata

This transparency helps potential buyers and lenders evaluate properties regardless of where they discover them.

---

Valuation and Lending

Lending protocols use valuation data differently:

NFTfi (Peer-to-Peer):

• Lenders evaluate properties individually
• Lenders set their own terms based on their assessment
• Estimated values inform but don't determine loan offers

MetaStreet (Pool-Based):

• Uses estimated values as a starting point for automated loan terms
• Applies additional risk filters beyond raw estimated value
• See MetaStreet for details on how the pool determines loan amounts

---

Best Practices

For Buyers:

• Use estimated values as one input among many
• Compare multiple valuation sources
• Research comparable properties in the area
• Consider obtaining a professional appraisal for significant purchases

For Sellers:

• Price competitively based on market research
• Understand that estimates may differ from buyer expectations
• Be prepared to justify your asking price

For Lenders:

• Conduct independent due diligence on properties
• Don't rely solely on algorithmic estimates
• Consider property liquidity and marketability
• Factor in your risk tolerance when setting terms