Appraisal Journal articles from April 1997

Appraisal Journal archives from April 1997

Tradition or stagnation? In defense of non-economic highest and best use.
April 1, 1997... In a recent position paper released by the Interagency Land Acquisition Conference, federal agencies regularly involved in real estate transactions assessed whether non-economic considerations can affect the determination of highest and best use...

Valuing the assets of a manufacturing company.
April 1, 1997... When working as a real estate consultant for a major accounting firm, I frequently appraised the real estate assets of various types of companies assuming ongoing operations. For the majority of these firms, real estate was not the primary...

Sensitivity of the FMRR technique in a fluctuating market. (financial management rate of return)
April 1, 1997... Imagine that a survey asked respondents to assume that an investment firm has requested an analysis of the value of a certain property using rates of return. Because of the real estate market's volatility at the time of this survey, an appraiser...

TDRs - great idea but questionable value. (transferable development rights programs)
April 1, 1997... Transferable development rights (TDRs) are property use rights that can be transferred from one property to another by government-created programs. It is a relatively new land use tool that can preserve historic buildings or environmentally...

The valuation of defective properties: a common sense approach.
April 1, 1997... Defective properties as discussed here are those with significant physical problems, such as contamination or construction defects (cracked slabs, soil problems, etc.). These problems generally require expensive remediation and create significant...

The twelve Rs: an overview of capitalization rate derivation.
April 1, 1997... In current Appraisal Institute courses, students are learning ways to create and prove an overall rate, a rate necessary to convert one year of income into value, by a process known as direct capitalization. All too often appraisers get...

Appraisal company status and direction for survival.
April 1, 1997... The appraisal profession is being propelled rapidly down a winding and unfamiliar path by forces beyond the control of individual appraisers. Contemporary management literature characterizes this swift change as reengineering. The change agents...

A conceptual framework for appraising wetland mitigation banks.
April 1, 1997... Recent scientific discoveries have proven that wetlands are an important natural resource. Due to these discoveries and an alarming rate of wetland decline, the government has intervened in the marketplace to protect this form of real estate for...

Loading capitalization rates and discount rates for property taxes and other expense items.
April 1, 1997... Appraisers who work in property tax litigation always have the problem of estimating a property's market value when that property's tax expense is in dispute. The dilemma is circular: How can the property's market value be estimated when the...