Market Feasibility Research

Critical Sub-Market Analysis/Project Assessment

Prudent decisions hinge on an accurate and factual, understanding of property and market fundamentals, as well as an assessment of possible repositioning alternatives, including modifications to a property’s plan, land use(s), product types both in lot size and housing product type, mix, and pricing. The results of our market analyses allow clients to confidently plan the product type, product mix, product pricing, product segmentation, and estimate the financial feasibility, thus reducing risk.

Each custom Market Study includes:

  • An in-depth analysis of the region, submarket, and competitive market area
  • Names and location of actively selling hew home subdivisions and the date each opened; total number of units within each subdivision; the number of remaining units; total number of sales in each subdivision; monthly sales rate
  • All new home and resale listings and closings and prices
  • Base pricing, net new home pricing, net inventory home pricing for homes currently offered in each subdivision
  • Detailed information concessions/incentives offered within each subdivision, and valuation of average incentives offered in each subdivision
  • Speculative home inventory, homes under construction, and lot counts for each subdivision
  • All pre-foreclosures, foreclosures, and REO sales
  • Activity reports on all pending and permit activity
  • Bedroom, bathroom, garage, and floor counts for each floor plan offered in each subdivision
  • Identification of top selling floor plan in each subdivision
  • A fresh analysis of competitive projects with up-to-date data in table and graphs
  • Buyers profiles analyses…information of who the buyers are, their interests, where they work, commuting information
  • In-depth analysis of the school system
  • Product type, product pricing, and absorption forecasts
  • Provide market feasibility studies during due diligence inspection periods or post acquisition
  • Provide job cost analysis and underwriting recommendations and assumptions for acquisitions and dispositions
  • Provide analysis for client on assets buyer demographics and absorption assumptions based on detailed competitive market analysis and job costs of repositioned product
  • Conclusions for the subject property

The purpose of such a detailed study is to answer, and provide a framework for helping our client be able to accurately design product types, product mix, and product pricing that best fits the sub-market and specific location of the property, and shall establish realistic assumptions and the ability to achieve an accelerated home sales pace.