General Appraiser Market Analysis and Highest & Best Use

Course overview

Welcome to General Appraiser Market Analysis and Highest & Best Use. This course is designed to help you apply meaningful market analysis in valuation assignments. It begins by presenting the basic concepts and terminology of market analysis and marketability analysis, and then shows how marketability analyses provide vital information for the highest and best use decision. In-depth coverage of Level B marketability analysis applications for three property types--a suburban residential subdivision, an existing multiunit residential property, and an office building--will enable you to start using the six-step market analysis process introduced at the beginning of the course and gain practice in applying inferred analysis techniques. You will also gain practice in applying the test of feasibility and determining a property's highest and best use. Lecture, in-class problems, group discussions, and frequent quizzes and practice tests combine to give you new, valuable skills that can increase the reliability of your marketability analyses, highest and best use analyses, and the conclusions you reach in the three approaches to value. The course also provides a transitional discussion to prepare you for Level C marketability analyses using fundamental demand analysis. This type of market analysis is covered in the Appraisal Institute course Advanced Market Analysis and Highest & Best Use. General Appraiser Market Analysis and Highest & Best Use addresses three relevant questions relating to highest and best use and market analysis: 1. What information is needed to test for highest and best use? 2. Where is this information found? 3. How is this information applied? The course emphasizes that a marketability analysis is integral to the highest and best use analysis, and highest and best use is integral to market value. All of the above questions must be answered to produce credible results in a market value appraisal.