Property Valuation

Property Valuation Sources

At Realink, we primarily rely on Home Track Valuation (EX. HouseCanary Data) and the most recent property sale price for property assessments. In cases where this valuation is unavailable or deemed inaccurate, we enlist an independent approved valuer to conduct a valuation (EX. RICS for UK-native properties). Each property is valued based on individual sales, comparable market evidence, and inspections.

Calculating the Total Property Tokenization Cost

The Total Property Tokenization Cost is defined as:

• Total Property Tokenization Cost = Property Valuation + 2% add-on conversion costs

The 2% margin applied to the exchange rate serves as a financial buffer to protect against currency volatility and potential losses during the conversion process. It also covers the costs associated with converting USD into stablecoins and then into native currency for property settlements. This margin contributed to the stability of our product offering, ensuring that property acquisitions could be completed reliably and predictably regardless of fluctuations in forex markets.

BNFT or Token Valuation

The amount a token appreciates or depreciates is determined by using the HouseCanary Automated Valuation Model (AVM). HouseCanary is the largest property valuation company and is used by the majority of single family hedge funds like Invitation Homes and Amherst Holdings.

To determine the valuation of a property over time, we take the rate-of-change of the HouseCanary AVM of the property on a monthly basis, then apply that same rate-of-change to the principal value of your tokens on a monthly basis.

For example, if HouseCanary’s valuation of your property is $100,000 and then one month later it’s $105,000 – your BNFT or Token would increase from $50 each to $52.50 each (a 5% increase).

The HouseCanary valuation is updated once per month between the 28th-7th, which is when the principal value of your tokens will update as well. Every time the value of your tokens updates, there will be a report from HouseCanary attached which walks through exactly how their valuation was calculated.