Appraisal Services and Consulting

Affiliated Real Estate Appraisers offers a wide range of services from valuation to real estate consulting services. The following are the types of appraisal report formats we offer as well as detailed descriptions of different types of consulting services we can provide:

1) Self-Contained

A self-contained appraisal report fully describes the data and analyses used in the assignment. All appropriate information is contained within the report and not referenced to the appraiser’s files. This is the most detailed report that we offer.

2) Summary

A summary appraisal report summarizes the data and analyses used in the assignment. Detailed data and information related to the report are kept in the appraiser’s work file.

3) Restricted Use

A restricted use appraisal report simply states the conclusions of the appraisal. All data and analyses are kept in the appraiser’s work file. This reporting option may not be appropriate for every client or in every situation.

Market analysis is the identification and study of the market for a particular economic good or service and is an essential part of all valuation appraisal assignments. There are four levels of market analysis (A-D) that can be provided with each appraisal report.

1) Market study

Macroeconomic analysis that examines the general market conditions of supply, demand, and pricing or the demographics of demand, for a specific area or property type. A market study may also include analyses of construction and absorption trends.

Market studies are one type of market analysis. Generally, such studies present a general analysis of broad supply and demand conditions for a specific property type, with no specific site under consideration. For example, an appraiser may undertake an analysis of the single-family housing market, the office market, the commercial retail market, or any of many other specified market types in a given city or geographic area. The basic components of a market study are similar to the basic components of a marketability study, but the focus and use of such a study differ from the focus and use of market analysis conducted for a valuation assignment.

2) Marketability study

A microeconomic study that examines the marketability of a given property or class of properties, usually focusing on the market segment(s) in which the property is likely to generate demand and investigates how a particular piece of property will be absorbed, sold, or leased under current or anticipated market conditions. Marketability studies are useful in determining a specific highest and best use, testing development proposals, and projecting an appropriate tenant mix.

This type of market analysis is property specific: a specific site, with or without improvements, is being considered. The appraiser's job is to identify and measure the market that surrounds and has an effect upon the site and/or improvement. This is the type of market analysis pertinent to valuation appraisals in which appraisers must examine the market that determines the value of the property.

3) Feasibility analysis

Economic feasibility analysis is defined as an analysis undertaken to investigate whether a project will fulfill the objectives of the investor. The profitability of a specific real estate project is thus analyzed in terms of the criteria of a specific market or investor. Alternatively, the term may be defined as an investment’s ability to produce sufficient revenue to pay all expenses and charges and to provide a reasonable return on and recapture of the money invested.

Economic feasibility is indicated when the market value or gross sellout of a project upon achievement of a stabilized condition equals or exceeds all costs of production. Feasibility can also be determined by analyzing the projected cash flows of a proposed investment as compared to the annual debt service needed to fund the project.

4) Investment Analysis

Investment analysis is a study that reflects the relationship between acquisition price and anticipated future benefits of a real estate investment. It is used to determine whether a specific property meets the risk and return requirements of a particular investor.

5) Highest and Best Use Analysis

Highest and best use analysis determines the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, and financially feasible and that results in the highest value. It can be used to determine what improvements will produce the highest value to a particular property.