Feasibility Studies
There are three primary types of feasibility studies: Snapshot Market Assessment, Comprehensive Feasibility Study and Financial Feasibility Study
Snapshot Market Assessment
A quick “Go or No Go Snapshot” of the feasibility for developing in a market area where you would like to build. You get a quick, inexpensive, hard core look at a market to assess the market feasibility for a proposed product/development.
Results are usually available in 2 weeks.
Comprehensive Feasibility Study
Market feasibility studies are designed to determine if there is sufficient demand (people in the market area who are likely to move to the community) to fill existing, planned and potential supply (homes or apartments in the market area including the proposed community).
The best time to do a feasibility study is before money has been expended on the purchase of land, architectural design, site planning, or any other aspect of a proposed community. All too often, developers pay to design a beautiful community that is too big and too expensive long before they know if there is sufficient demand to make the community feasible.
Financial Feasibility Study
A financial feasibility study determines if the proposed community or housing product is built and the proposed fees are charged that there will be sufficient income for the community to pay all expenses, the debt and taxes and provide a return on investment.