Appraisal Journal articles from January 1995

Appraisal Journal archives from January 1995

Highest and best use analysis: appraisal heuristics versus economic theory.
January 1, 1995... Disagreement persists among traditional and contemporary thinkers over the meaning and execution of highest and best use analysis in appraisal. The disagreement stems largely from differing conceptual premises inherent in traditional and...

Market analysis in the appraisal process.
January 1, 1995... Because conditions in a property's market area are a significant determinant of value, a sound market analysis is essential to the development of a supportable value estimate of real property. This component of an appraisal involves examination...

Business enterprise value: the debate continues.
January 1, 1995... Some real estate academics and appraisers are attempting to identify and measure a perceived nonrealty value component, now known as business enterprise value (BEV), in regional shopping malls. Much of the debate concerning this value component...

Cash equivalency and closing costs in residential appraisals.
January 1, 1995... Cash equivalency adjustments to comparable sales have received much attention in the appraisal literature. While the available materials concentrate primarily on financing terms, they devote minimal consideration to transaction costs. Transaction...

The new URAR and environmental hazards. (Uniform Residential Appraisal Report)
January 1, 1995... As of January 1, 1994, a new version of the Uniform Residential Appraisal Report (URAR) is required for all loan purchases made by the Federal National Mortgage Association (Fannie Mae). The form's newly revised comments section specifically...

Entrepreneurial profit incentive and marketwide external obsolescence: are they mutually exclusive?
January 1, 1995... The cost approach is one of the three methods used by real estate appraisers in valuing real property. Since its introduction as a valuation procedure, the cost approach has come under fire from sharpshooting scholars and appraisers. These...

Clarifying the structure and advancing the practice of real estate market analysis.
January 1, 1995... Real estate developers, lenders, and investors engage in market analysis or hire market analysts as a way to reduce risk when considering the market feasibility of development ideas. Yet the record of market analysis as an effective risk control...

Reserves for replacement in apartment properties.
January 1, 1995... Reserves for replacement are an essential component of any analysis of cash flow from income-producing real estate. In discussing the concept, The Appraisal of Real Estate, tenth edition, states that "a replacement allowance provides for the...

Statistical implications of the most probable price.
January 1, 1995... As an instigator lobbying for the use of statistical techniques during the late 1960s and the early 1970s, I am probably as guilty as anyone of iconoclastic charges against established appraisal principles. Over the intervening 20 years, the...

Is there discrimination in the appraisal process?
January 1, 1995... Question: What is the best way to get rid of a bunch of appraisers? Answer: Ask a question about the big "D" word - discrimination. Most will run for the exits. Those remaining will turn red and want to fight. Both groups have learned that...

Eminent domain.
January 1, 1995... In the United States, the right to own private property is fundamental. The Fifth Amendment to the U.S. Constitution restricts the government's use of power to seize private property by guaranteeing that private property will not be taken unless...

The official land value appraisal system under the land-use rights reforms in China.
January 1, 1995... In a newly developed economy such as the one evolving in China, industrialization and increased economic activity may bring about substantial changes in the living standard of the local people. One of the more tangible changes comes from the real...

Risk and reward: Russian roulette or different paradigms?
January 1, 1995... Any beginning real estate investment student knows the basic axiom of balancing risk with reward. It is a concomitant position that the greater the risk, the greater the reward should be, if an investor is willing to accept the risk for the...