Valuation in XBRL, what exactly is that?

The commercial real estate valuation market is in a state of flux. Digitization, XBRL, data sharing, automated valuation (AVM) are examples of terms that come up daily. In this blog, we explain what exactly XBRL is.

Better data quality and efficiency through XBRL

The explanation you can find on the Internet is the following: “XBRL (eXtensible Business Reporting Language) is an open standard based on XML (Extensible Markup Language) for the electronic collection and exchange of financial data over the Internet.

In “Jip and Janneke language,” you can say that an additional controlled excel file is created, where each box has specific rules. If you translate this into a valuation report, this report consists of several data points. These data points are loaded into the appropriate ‘box’ in the XBRL file. This file is delivered to the bank in the Netherlands via SBR Nexus (collaboration of ING, Rabobank and ABN AMRO). Previously, these data fields were entered manually from the PDF into the bank’s systems. This is now no longer necessary and ensures better data quality and efficiency.

Software package of interest to banks

Work is also currently underway to make the assignment letter available to the appraiser via XBRL. This will allow data to be loaded directly into the software package. This is also going to give the appraiser more efficiency and more complete data. So it is essential to have a software package to continue to appraise for the banks.

Who determines the data fields?

The underlying data structure of the XBRL used for valuation is subject to change. Currently, Real Estate Taxonomy (VT) 14 and 15 are being used, but VT16 is being worked on. So quite a few versions have already passed by. SBR Nexus is responsible for preparing the taxonomy. This is done in cooperation with appraisers, banks and software vendors. For example, they are now working hard on the sustainability paragraph. New fields will be made available in VT16.

Is the PDF appraisal report still needed?

Yes it does. XBRL helps share and receive structured data in an efficient way. Of course, it is still necessary to work according to applicable guidelines, such as the NRVT.

More information?

Want to learn more about XBRL and KATE Innovations’ software? Get in touch via info@kateinnovations.com, 085-773 7037.