Philosophy

Aristotle_WheelerWhat we believe

Our goal is to provide in a timely manner well-documented commercial real estate appraisal services in a clear and concise report.

Value estimates are educated opinions based on a variety of data sources and appraiser experiences, and are not synonymous to pricing.  Value estimates cannot be “proven” in an imperfect market set by buyers and sellers with varying motivations and beliefs, but value estimates can be well-supported and well-documented through application of education and experience.  Most times numbers and sales can be found to support just about anything; our role as an appraiser is not to support “just about anything”.   In each and every assignment we provide a value opinion that is reasonably supported and well-documented, provided in a clear and concise report delivered in a timely manner.

Real estate appraisal analysis is inherently “short-term” by nature (what is the value now, based on what market participants are doing now), but we try to temper this by discussing and explaining market dynamics and economic fundamentals that may drive buyers and sellers (Were 5% cap rates that were being seen for certain asset/property types reasonable given market interest rates, projected changes in rents, expenses, and future values? Are 20,000 newly permitted lots in a 3% population growth market necessary?  Maybe, maybe not, but analysis and explanation are necessary.)

We try to take a moderate approach to appraisal analysis, and try not to be too optimistic/aggressive in boom times, but not too pessimistic in bumpy times.   There will always be real estate cycles that must be considered in making a value estimate, and we do so, but try not to get too excited either way (It’s a NEW market dynamic, BLUE SKIES are shining forever!!!!   Whoaaaaaa, Nellie, CHICKEN LITTLE is right, the sky has fallen and we are doomed!!!!).  We have been through several cycles (high interest rates of the late 70′s, RTC days of the late 80′s early 90′s, mid-2000′s boom, late 2000′s housing freefall/credit crisis, and less exaggerated cycles in-between), and try not to get too caught up in short-term imbalances that occur.  Obviously, the market  as-is must be addressed and analyzed, but in the context of  underlying economic fundamentals.   The go go go residential market of the mid-2000′s, led by sophisticated investors, lenders, developers, builders, and financial gurus, was not sustainable, although few believed that.  The current market will not last forever either, although there is always uncertainty, and until 2013 there had been little light in the recession recovery that has extended much longer than usual. Things looked a little brighter in 2013 and continuing into 2014 although still not at historical stabilized levels and with some headwinds still in place.

Appraisal analysis requires more than a few hours of technical training and apprenticeship.  Yes, we could provide basic facts, raw sales data from public sources, limited analysis, and a value opinion, but is that really what you want or need?  (If so, please re-google/bing/yahoo for another firm).  To provide the best analysis possible, we subscribe to a variety of data sources that provide us state-wide coverage on sales activity, subscribe to various periodicals and newsletters that keep us up to date on investor expectations and market dynamics, and purchase as needed supplemental data to support our analysis (e.g. apartment market surveys, income and expense data for various property types, UFOC statements for franchise motel and restaurant operations, etc.).  We take the extra step and expense of purchasing and providing the data necessary to fully support expense estimates, cap rate analysis, investor expectations, etc., which is necessary for well-supported commercial real estate appraisal value estimates.

No one is always right, no value can be “proven”, and there can be differences of opinion.  However, a value estimate by a qualified real estate appraiser such as Wheeler Appraisals and Curt Wheeler can be properly analyzed, well-documented, and presented in a timely manner in a clear and concise report.   That is our goal, in each and every real estate appraisal assignment.

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