Appraisal Journal articles from January 2002

Appraisal Journal archives from January 2002

Thomas A. Motta, MAI, SRA 2002 President, Appraisal Institute.(Brief Article)
January 1, 2002... Thomas A. Motta, MAI, SRA, is the 2002 president of the Appraisal Institute. He has been an active member of the organization both locally and nationally and served in numerous capacities. He has been a member of the national Board of Directors...

Market exposure not necessary for a bona fide sale. (Cases in Brief).(Brief Article)
January 1, 2002... Market exposure is not a necessary element to establish a bona fide sale of real property for purposes of valuation, according to the Supreme Court of Vermont. Tambrands, Inc., formally owned 27.7 acres, including a 217,000 square foot...

Tax exemption granted for educational purposes. (Cases in Brief).(Fire Baptized Holiness Church's Independence Bible School)(Brief Article)
January 1, 2002... The occupancy of a residence at an educational or religious institution does not, by itself, constitute an educational or religious use, according to the Court of Appeals of Kansas. The court said that it is necessary to examine the underlying...

Deceased appraiser's report used as evidence. (Cases in Brief).(Brief Article)
January 1, 2002... The Supreme Court of Minnesota ruled that the tax court could admit into evidence a deceased appraiser's report as part of the report prepared by the property owner's appraiser. Terry Lewis purchased a 4.2-acre lot along Lake Minnetonka, in...

Low income housing contracts considered in real estate taxes. (Case in Brief).(Brief Article)
January 1, 2002... The Court of Appeals of Kansas ruled that taxing authorities should consider the effects of low income housing contracts when valuing property for real estate taxes. The Ottawa Housing Authority Association, L.P. (Ottawa), owned a 72-unit...

Island property determined under valued in light of an arm's length sale. (Case in Brief).(Greenings Island, Maine)(Brief Article)
January 1, 2002... The Supreme Judicial Court of Maine ruled that the assessed value for island property was manifestly wrong in light of an arm's length sale of other island property six months before the assessment. Cranberry Point Realty Trust (trust)...

Loss of road access results in unfair compensation. (Case in Brief).(Brief Article)
January 1, 2002... The complete loss of access to a road adjoining an owner's property as a result of the state's condemnation of the property was a compensable "taking," even though the owners retained access to another road that adjoined the property, according...

Non-sufficient proof of obsolescence in tax assessment. (Case in Brief).(Davidson Industries Inc. v. Indiana State Board of Tax Commissioners)(Brief Article)
January 1, 2002... Photographs of buildings and a taxpayer's conclusory statements did not establish sufficient proof of obsolescence in a tax assessment case, according to the Tax Court of Indiana. Davidson Industries, Inc., owns property located in Johnson...

Rent restrictions not considered for low income housing valuation. (Case in Brief).(Cascade Court Limited Partnership v. Noble)(Brief Article)
January 1, 2002... The Board of Tax Appeals (BTA) should have taken rent restrictions into account in valuing low income housing projects, according to the Court of Appeals of Washington. Ten low income housing projects were operated by five non-profit...

Once upon an offer: Use of unaccepted offers to purchase real estate as evidence of valuation in condemnation proceedings. (Law and the Appraiser).(various cases in various jurisdictions)(Brief Article)
January 1, 2002... When real property is taken for a public purpose pursuant to the power of eminent domain, the primary dispute between the condemnor and the owner usually concerns the determination of just compensation. Absent a negotiated settlement, both...

Real estate and the capital markets: A special look at the impact of terrorism. (Financial Views).(U.S economy)(Statistical Data Included)
January 1, 2002... Commentary In early fall, it was becoming clear that the economy had been decelerating for some time, despite the gallant efforts of consumers and a robust housing market. The outlook at that time was for positive but modest economic...

Real estate values in China: Lessons of the late 1990s. (International Appraising).(Statistical Data Included)
January 1, 2002... China's real estate sector has experienced four periods of development over the past 50 years. When the People's Republic of China (PRC) was founded in 1949, the real estate sector was in a state of "dormancy." This period continued until 1984,...

Sick commercial buildings: What appraisers need to know. (Features).
January 1, 2002... abstract An appraiser employed to find the value of a "sick" commercial building (or one suspected to be sick) is obligated to identify the problem as well as make recommendations for remedies. The following article defines sick building...

Industrial facility valuation: Electric generating projects. (Features).
January 1, 2002... abstract Recent turmoil in the electricity industry underscores the complexity of business operations as this industry continues the deregulation process. The valuation process necessitates an understanding of the many internal and...

Non-Comparable industrial sales. (Features).
January 1, 2002... abstract At the time of appraisal, large special purpose manufacturing plants can continue the current use as their highest and best use or they can be suitable only for alternate use. The comparability of sales is directly related to this...

Allocation of business assets into tangible and intangible components: A new lexicon. (Features).
January 1, 2002... abstract Allocation of total appraised value for certain operating properties between tangible and intangible components, if not required by investors, is mandated by USPAP and required for taxation, underwriting, and condemnation. Not...

Business enterprise value in special purpose properties. (Features).
January 1, 2002... abstract Measuring business enterprise value (BEV) is an important part of many appraisal assignments, but debate continues over the appropriate techniques for extracting this component of going concern value. In this article, we propose a...

A beginning best practice brownfield valuation model. (Features).(using geographic information systems)
January 1, 2002... abstract This article is the fourth of a series that discuss the use of geographic information systems (GIS) formarket analysis. The objective of this article is to suggest a beginning best practice approach for the valuation of...

Real estate holdings of United States senators. (Features).(Statistical Data Included)
January 1, 2002... abstract This study examines the real estate investment holdings of members of the United States Senate during the period 1993-1999. The real estate holdings are described in terms of the number of properties held, value of the...

The analysis of environmental case studies. (Features).(market sales data to aid valuation of environmentally impacted properties)
January 1, 2002... abstract In recent years, there have been a growing number of sales of environmentally impacted properties. Appraisers now have market sales data that can be used to estimate the effect of environmental contamination on real property...

Financial Accounting Concepts Statement No. 7: Using cash flow information and present value in accounting measurements; General comments from members of the appraisal institute (1). (Notes and Issues).
January 1, 2002... Background Earlier this year the Appraisal Institute met with the Financial Accounting Standards Board (FASB) (2) to discuss the implications of fair value (or market value) accounting. Discussions with FASB dealt directly with valuation...

Valuation in the aftermath of 9/11.(real property value following U.S terrorist attacks)
January 1, 2002... September 11, 2001, is marked forever by the tragic events that befell the United States that day. The terrorist attacks on native soil have had a profound effect on the American people. Intended to destroy lives and property; the vicious...

Response to "To whom are appraisers liable?" (Letters to the Editor).(Letter to the Editor)
January 1, 2002... While the letter to the editor by J. Gordon Forester, Jr. (October 2001) addresses "To Whom Are Appraisers Liable?" (April 2001), the letter contains several comments regarding a seminar. I have developed three seminars in the last two years on...

The appraisal contingency clause was inserted by realtors to protect realtors. (Letters to the Editor).(Letter to the Editor)
January 1, 2002... The Soderburg case that Forester refers to is only one case (that still stands) on the topic of "intended beneficiary" I was hired by Thomas B. McCullough, Jr. to provide expert testimony in the case by reviewing the McKinney appraisal report....

Response to "Across the fence methodology for valuation of corridors: What is and how is it used?" (Letters to the Editor).(Letter to the Editor)
January 1, 2002... Market evidence indicates that corridor rights values may be most accurately measured using industry-mirroring techniques. Not all corridors are transportation corridors, and transportation corridor appraisal techniques don't work well in...

In response to the letter regarding "Across the fence methodology: What is it and how is it used?" (Letters to the Editor).(Letter to the Editor)
January 1, 2002... This letter is in response to the letter submitted by Mr. Charles P. Bucaria, MAI, regarding the article about using across the fence (ATF) methodology in corridor valuation. The purpose of my article was to clarify' the history and the use of...

Comments on "Business value allocation in lodging valuation." (Letters to the Editor).(Letter to the Editor)
January 1, 2002... Since I was first exposed to business enterprise value (BEV), I have marveled at the two extremes that underscore the issue. It is fairly easy to argue that most real estate properties, if not all, qualify for business enterprise status. But,...

Response to Robert Owens letter to the editor. (Letters to the Editor).(Letter to the Editor)
January 1, 2002... I have always welcomed discussion and debate on the estimation of business value in hotel assets. The numerous conversations I've had over the years with many hospitality professionals has kindled the desire in me to research and quantify this...

Comments on "Revisiting valuation of real estate partial interests: Recent case Studies." (Letters to the Editor).(Letter to the Editor)
January 1, 2002... In the first example, the Estate of Williams, the author deducted attorney's fees too soon in the process. As a result, the attorney's fees are incorrectly subject to a discount because the buyer would pay the full attorney's fees to accomplish...

Hotels and Motels--Valuations and Market Studies. (Publications).(Brief Article)(Product Announcement)
January 1, 2002... The Appraisal Institute is pleased to present Hotels & Motels--Valuations and Market Studies by Stephen Rushmore, MAI, and Erich Baum. This new text updates and expands on the 1992 Hotels and Motels book, the classic text on the valuation and...

A Classic Redefined: The Appraisal of Real Estate, 12th edition. (Publications).(Brief Article)(Product Announcement)
January 1, 2002... The discipline of real estate appraisal changes every day. Practitioners stay ahead by refining their skills, incorporating new ideas to inform and expand their expertise. Real estate and business professionals will find everything they need to...