Prices for appraisal services are forecast to continue growing during the next three years as businesses continue to purchase more commercial property, thus increasing demand for appraisal services
Los Angeles, CA (PRWEB) February 13, 2015
Real estate appraisal services have a buyer power score of 2.8 out of 5. This score indicates that buyers have a moderate amount of negotiating power due to the low market share concentration, low price volatility and vendors' financial stability. There are just under 60,000 suppliers of these services in the United States, which has led to a high level of competition in the market. These suppliers include Jones Lang LaSalle Inc., Keller Williams Realty, BGC Partners, Inc. and FirstService Corporation. The strong level of competition encourages suppliers to negotiate prices to gain market share and, in so doing, boosts buyer power. The high financial stability of the average supplier of appraisal services also increases buyer power. Because suppliers are financially stable, buyers do not have to worry if a supplier will go bankrupt during the course of a contract. “Overall stability also means that buyers have a wide range of suppliers from which to choose,” according to IBISWorld business research analyst Scott Winters. Low price volatility further contributes to the moderate level of buyer power. Buyers are not at risk of huge spikes in service prices, and knowing that prices will not jump significantly during the length of the contract, suppliers are more willing to negotiate a lower price for multiyear contracts.
However, buyer power is hampered due to growth in the price of appraisal services during the past three years; this growth is anticipated to continue during the three years to 2017. Demand for real estate appraisal services has been growing during the three years to 2014 due to the rising number of businesses and increase in private nonresidential construction. “A rising number of businesses increases demand for commercial real estate, which, in turn, boosts demand for appraisal services needed by businesses,” Winters says. The increase in private nonresidential construction, meanwhile, has allowed businesses to expand their operations, further increasing demand for commercial real estate and, thus, appraisal services. The increase in demand has allowed suppliers to raise their prices during the past three years. Demand is expected to continue growing during the next three years as these trends continue, resulting in further price increases. For more information, visit IBISWorld’s Real Estate Appraisal Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of real estate appraisal services. Service providers help estimate the fair market value of real estate when it is mortgaged, developed, insured, improved, taxed, bought or sold. Suppliers appraise commercial, nonresidential and residential property. This report excludes real estate listing, property management and other appraisal and evaluation services.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.