1.4.2. Marketability Studies. In complex or unusual appraisal problems, a marketability study may be required as part of the scope of work. Marketability studies are often required for appraisals of properties located in transitional areas, properties that contain special-use improvements, or properties for which the highest and best use is unclear without in-depth study. In acquisitions referred to the U.S. Department of Justice, a marketability study will be required. 

A marketability study should include a detailed analysis of the subject property and its economic environment. This should include an analysis of the potential physically possible and legally permissible uses of the subject property and its competitive position within the market. A detailed supply and demand analysis should be developed for the various uses possible for the subject property. In appraisals of properties with income producing improvements, the marketability study should identify the quality class of the improvements and the existing and future competitive supply of similar improvements. Vacancy levels in the market, rental rates, and operating expenses should also be addressed.