Common Valuation QuestionsQ. When do I need a Market Study?• Before acquiring a site• Way before deciding on the final product • When the project is underway and things are not working out as planned Q. Why do I need a Marketability study?To identify the right product that will sell or rent and meet profit expectationsTo determine the realistic price points To forecast timing and performance and identify risk To forecast growth in prices To determine the “Top Down Solution” not the “Bottom Up” project feasibility To provide proper support for appraisal conclusions Q. Who can benefit from a Marketability Study?Land investorsProject developers Lenders Marketing teams Property owners (before selling) Prospective Buyers Q. How much does a Market Study cost?Pricing is based on time, location and scope of theproject.Q. Why can’t my marketing team do this?Your marketing team can be incredibly more effective by having an objective analysis performed and using it as a tool to target the proper market standards.Q. What if I don’t think I need the full study?You can choose just the services you need provided on a consulting basis.Q. Can this analysis help when a property is already built?Yes, especially if the project is under-performing and not meeting expectations. A thorough analysis of the strengths and weaknesses of the property and the competitors can help “re-position” the product to fit changing market conditions.Q. Can I use this service to help me find the best site for my development?Yes, this is very valuable in selecting the best site for the best product; as the old saying goes, “the deals that make you money are the ones you pass on” (when they are not right for you). |
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