Feasibility Studies
Feasibility Studies
Our studies include
all
facets of project development, technical, market and financial risk.
Wert-Berater
strives to provide our clients
with the best information available so they can make an informed
decision on going forward with a project. One service that we highly
recommended at the initiation of a project is a feasibility study.
Our feasibility studies are among the most comprehensive available and
are available for a wide range of industries:
Wert-Berater, Inc. is a specialist in providing Environmental
Feasibility Studies and Feasibility Studies for USDA Loan Guarantee Programs.
Feasibility studies can be as simple such as for real estate and other
land development related projects as determining the nearest utility
connections to providing current information on zoning, utilities,
topography, drainage, cost estimating, site layout, etc.
In addition, schedules can be provided indicating an estimate on the
length of time a project should take to be entitled. Our experience has
given us the reputation that we provide sound information, realistic
schedules and unique/cost effective design solutions.
The most sophisticated computer modeling programs such as
SITEOPS®,
Decision Tree Analysis and Monte Carlo Simulations are applied to
estimate probability of risk and return. For more information
concerning SITEOPS®
click here.
 
Land Development Feasibility
Studies
This land development feasibility study is often combined with our
market and analytical feasibility study to provide the most
comprehensive study available for a planned vertical development
project. For more information about our market and analytical studies contact us by calling
888.661.4449.
 
Monte
Carlo Simulations for
Real Estate Valuations
HEC, University of Geneva, FAME and University of Aberdeen
The following paper is provided in PDF form and may be downloaded here.
Abstract
We use the Adjusted Present Value (APV) method with Monte Carlo
simulations for real
estate valuation purposes. Monte Carlo simulations make it possible to
incorporate the
uncertainty of valuation parameters, in particular of future cash
flows, of discount rates and of
terminal values. We use empirical data to extract information about the
probability
distributions of the various parameters and suggest a simple model to
compute the discount
rate. We forecast the term structure of interest rates using a Cox et
al. (1985) model, and then
add a premium that is related to both the real estate market and
selected property-specific
characteristics. Our empirical results suggest that the central values
of our simulations are in
most cases slightly less than the hedonic values. The confidence
intervals are found to be
most sensitive to the long-term equilibrium interest rate being used
and to the expected
growth rate of the terminal value.
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