What we believe
Our appraisal goal is to provide in a timely manner well-documented commercial real estate appraisal services in a clear and concise report. When representing buyers or sellers in a transaction, the appraisal background helps in pricing and marketing decisions, and our data sources allow marketing on a national basis as well as thru various MLS systems in Florida, North Carolina, and Georgia.
In appraisal analysis, no one is always right, no value can be “proven”, and there can be differences of opinion, sometimes significant. 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.
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. 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 free fall/credit crisis, Covid pandemic era with rapid escalation in housing and rent pricing, 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.
At this update in late 2024, Covid has receded into the background domestically. The Russian invasion of Ukraine in early 2022 and still ongoing affected energy and supply chain sectors of the economy. The Israel/Hamas war is ongoing and potentially intensifying, and the United States is in the midst of a presidential election year. These have impacts on markets but most real estate sectors have seen recovery, some sectors that were already declining accelerated the decline at Covid, and others are not fully recovered. Hospitality, travel, site-based retail, and office sectors were more strongly affected with ripple effects therefrom, but are well into recovery except for major office centers in urban markets. Medical, logistical, and technical sectors were not as strongly affected, and in growth mode in some cases. Residential markets went on a tear and there was an increased demand for more rural locations and for land, but these pressures have largely gone away with the increase in interest rates. Supply chains and logistics are still tangled and adding to inflation pressures, but both are easing. With the rise in interest rates and refinancing from low rates of 3-5 years ago there are concerns for institutional quality office and retail properties, and strong rent increases in MFR have moderated.
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? To provide the best analysis possible, we subscribe to a variety of data sources that provide us 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.