FAQ
Answers to the questions we hear most from property owners, attorneys, and lenders.
Frequently Asked Questions About Commercial Real Estate Appraisal
Below are answers to the questions prospective clients ask most often about our work. Fanning & Associates is a Denton, Texas consulting firm serving the Dallas/Fort Worth region, specializing in real estate market and marketability analysis, highest and best use studies, valuation, forensic appraisal review, and condemnation and litigation support. If your question isn’t covered here, call Steve Fanning at 940-387-7493 or email steve@fanningconsult.com — most inquiries can be answered in a short conversation.
What is the value of my property?
Property value is determined through a formal appraisal, not an estimate or an online calculator. Property market value is the present value of the future benefits associated with owning the property. Fanning & Associates establishes value first by analyzing what the property can realistically support – its physical, legal and locational characteristics then testing whether the market actually demands that use, and at what price and timing for alternative uses which use is forecast to create the highest value which is called the highest and best use to be valued. Only after that analysis is complete do comparable sales, income forecast and adjustments come into play. The result is a defensible value conclusion supported by market evidence rather than assumption. To discuss your property, contact Steve Fanning at 940-387-7493 or steve@fanningconsult.com.
Do you appraise under-performing properties?
Yes. Under-performing and distressed properties are a core specialty of the practice. These assignments require more than a standard valuation, because the central question is usually why the property is under-performing and whether its current use is still its highest and best use. Fanning & Associates analyzes whether the shortfall stems from market conditions, physical or locational constraints, management, or a mismatch between the property and actual demand — then values the property under its most probable and profitable alternative.
Do you provide real estate litigation services?
Yes. Fanning & Associates provides litigation support including forensic appraisal reviews, valuation, highest and best use studies, demand forecasting, and consulting on disputed real estate matters. The practice is built for assignments where the analysis will be challenged — condemnation proceedings, valuation disputes, and cases where an opposing appraisal is at issue. Principal Stephen F. Fanning received the Appraisal Institute’s James H. Pritchett Award in 2019 in recognition of contributions to appraisal education with a focus on litigation and condemnation. Steve Fanning has expert witness testimony and deposition experience.
Do you provide forensic reviews of appraisals prepared by others for litigation?
Yes, Forensic Appraisal Review is a primary service of the firm. A forensic review examines whether another appraiser’s conclusions are supported by generally accepted appraisal methods and techniques and by the data contained in, or reasonably expected to be contained in the appraisal. The review also evaluates whether demand assumptions are supported by the available data and whether the three approaches to value are consistent with the concluded highest and best use. Stephen F. Fanning holds the AI-GRS designation, the Appraisal Institute’s credential for General Review Specialists.
Do you provide economic unit studies for condemnation?
Yes. Separate economic unit studies are provided for partial takings in condemnation. This analysis determines whether a property that appears to be a single holding actually functions as two or more distinct economic units — or conversely, whether separate parcels operate as one. The determination directly affects how the taking is valued and what damages apply to the remainder by the highest and best use of the whole property being consistent with the separate economic unit.
Do you provide valuation studies for damages to the remainder property?
Yes. In partial takings, Fanning & Associates analyzes the economic impact of the taking on the remainder property, including the present value of any potential damages. This work addresses if the taking changes the remainder’s highest and best use before and after – then quantifies the resulting impact, if any, on the market value of the property. The analysis is prepared to withstand scrutiny in condemnation proceedings and is supported by market evidence rather than assertion.
Do you appraise commercial properties, golf courses, and vacant land?
Yes. Fanning & Associates appraises multifamily properties, office buildings, shopping centers, manufacturing and warehouse facilities, and standalone golf courses and golf resorts. The firm also values vacant land — including small and large mixed-use tracts — as well as subdivisions and environmentally impacted properties. Golf course valuation is a particular specialty; principal Stephen F. Fanning holds the SGA designation from the Society of Golf Appraisers and has published on golf course valuation in the Appraisal Journal.
Do you provide real estate demand studies?
Yes. Demand analysis is foundational to the firm’s approach. A demand study identifies where there is demonstrable economic demand for a property’s use in its market, who the likely users and buyer types are, and when that demand is expected to materialize. The work includes delineating the relevant market area, quantifying demand and supply, calculating residual demand, and forecasting the subject property’s likely capture of it. For land and unimproved property, this includes forecasting development timing and future occupancy potential.
Do you provide real estate market studies?
Yes. Market and marketability analysis is the foundation of every assignment the firm undertakes. A market study defines the relevant Fundamental (property users) market area and measures demand, supply, and residual demand within the area. A marketability study goes further, determining how much of that demand a specific property can realistically expect to capture, over what period, and at what price or rent. Together they establish the basis for selecting comparables, supporting adjustments, and forecasting income.
(See book Market Analysis for Real Estate by Stephen F. Fanning published by the Appraisal Institute.)
Do you provide condemnation appraisals?
Yes. Fanning & Associates handles condemnation and eminent domain valuation assignments, including partial takings. Condemnation work requires establishing the value of the property taken as well as the effect of the taking on what remains — analysis that depends on a properly supported highest and best use conclusion for both the whole property before the taking and the remainder after it. The firm provides supporting studies including separate economic unit analysis and remainder damage valuation. The firm works for condemning authorities, property owners or both.