Appraisal Journal articles from June 2006

Appraisal Journal archives from June 2006

Alfred M. Benson, MAI.(in memoriam)(Obituary)(Brief article)
June 22, 2006... Alfred M. Benson, MAI, died on April 11, 2006. Mr. Benson was an appraiser for nearly 40 years and had been the principal of The Alfred M. Benson Co. located in Tucson, Arizona. He was a leader in the appraisal industry and very active in...

Theron R. Nelson, PhD.(in memoriam)(Obituary)(Brief article)
June 22, 2006... Theron R. Nelson, PhD. died on March 23, 2006. Mr. Nelson had been an active member of the Appraisal Journal Academic Review Panel since its inception in 2000. He was a professor at the University of North Dakota in the Department of Finance...

Property tax assessment requires consideration of federal tax credits and restricted rental rates.
June 22, 2006... A county board of equalization (Board), in assessing an apartment building for property tax purposes, was required to consider both federal tax credits and restricted rental rates, according to the Supreme Court of South Dakota. Town...

Purchase price of property is true value in arm's-length transaction.(cases in brief)(Board of Education v. Board of Revision)(Brief article)
June 22, 2006... The purchase price of property in a recent arm's-length transaction was the true value for tax purposes, regardless of the value based on rent, according to the Supreme Court of Ohio. The property at issue here consisted of two buildings,...

Intended user of appraisal report included lessees.(Triad Randall Lake, LLC)(Brief article)
June 22, 2006... Appraisers of business properties for a lessor owed a duty to lessees who had exercised options to purchase the properties at a price that was based on the appraisal, according to an Illinois appellate court. Several parties (the lessees)...

Wetlands regulations did not affect a compensable taking of property.(K & K Construction, Inc., the J.F.K. Company, and Resorts & Co.,on Department of Environmental Quality )(Brief article)
June 22, 2006... Wetland regulations, which led to a denial by the Department of Environmental Quality (Department) of developers' application for a permit to fill wetlands, did not affect a compensable regulatory taking of the developers' property, according...

Signage expert deemed qualified expert witness.(Matthew and Sanae Burton)
June 22, 2006... An Ohio appellate court ruled that a property owners' witness was qualified to render expert opinions concerning a city's action to appropriate their private property. Matthew and Sanae Burton (Burtons) purchased a single-family residence...

Erroneous classification of property's description may result in repayment of overpaid taxes.(Brief article)
June 22, 2006... A Kansas appellate court ruled that the county's mistake in classifying real property based upon an erroneous guess as to the nature of building materials was a clerical error that could require repayment of overpaid taxes. From 1997...

Out-of-state comparable sales deemed appropriate to assess fair market value.(McNeilus Truck & Manufacturing, Inc.)(Brief article)
June 22, 2006... The Supreme Court of Minnesota ruled that a tax court's informal rule prohibiting the use of out-of-state comparable sales violated its obligation to assess property at fair market value. McNeilus Truck & Manufacturing, Inc. (McNeilus),...

Tax exemption for disabled veteran denied.(Sylvester v. Commissioner of Revenue)(Brief article)
June 22, 2006... A five-year residency requirement for a partial real estate tax exemption did not violate a disabled veteran's right to travel protected by the equal protection clause of the Fourteenth Amendment, according to the Supreme Judicial Court of...

Summer cycle on solid ground.
June 22, 2006... Commentary In the summer of 2006, the United States is facing a number of interesting scenarios: the Southeast is still recovering from Hurricane Katrina and the carry-over effects of the subsequent storms; the new hurricane season has...

Boom remains in most European housing markets.
June 22, 2006... Divided Performance: Price Stability or High Inflation 2005 was another strong year for most EU housing markets with the smaller countries experiencing higher house price inflation than most of the larger ones (Figure 1). Even so, despite...

Considerations in gross rent multiplier analysis.
June 22, 2006... Goss rent multiplier (GRM) ratios can vary considerably, and GRM analysis may be more complicated than some appraisers think. In this edition of "Residential Appraising," the discussion looks at the suggested order of adjustments and how the...

Scope of work and problem identification: the significant seven.
June 22, 2006... abstract Scope of work is now the primary mechanism for flexibility in USPAR It gives appraisers the ability to tailor each assignment appropriately for the circumstances. However, the appraiser must give careful thought to the scope of...

Addressing enhancement in conservation easement appraisals.
June 22, 2006... abstract This article attempts to bring some clarity to one of the most commonly misunderstood aspects of conservation easement appraisal practice, the enhancement rules. Enhancement rules apply when encumbering land with a conservation...

Are property taxes capitalized in the selling price of industrial real estate?
June 22, 2006... abstract This article presents an empirical study of the selling prices of 419 industrial properties near O'Hare Airport in Cook and DuPage Counties in metropolitan Chicago that were sold during 2001-2004. The results show that selling...

Cost-based property tax inequity: evidence from Indiana.
June 22, 2006... Abstract In recent years, twelve states have appraised residential property using construction cost data. Eleven of these states adjusted the resulting values, attempting to move them closer to currently existing market levels. In...

Testing the reliability of contingent valuation in the real estate marketplace.
June 22, 2006... abstract In recent years, contingent valuation has been suggested as an appropriate fourth approach to value. This article reports on results of market-based testing of the reliability of contingent valuation in actual situations in...

2006 USPAP and scope of work.(notes and issues)(Uniform Standards of Professional Appraisal Practice )
June 22, 2006... by The Appraisal Standards Board The 2006 Edition of the Uniform Standards of Professional Appraisal Practice (USPAP) reflects extensive changes resulting from the Appraisal Standards Board (ASB) examination of the proper role of the scope...

Opportunities for growth: the appraisal institute and international real estate markets.(notes and issues)
June 22, 2006... Abstract The rapid changes of the last decade, in both real estate markets and the global economy, have created an interconnected world where barriers of time and geography have fallen away. Real estate's growing place in investment...

Financing Residential Real Estate, 13th Edition.(Book review)
June 22, 2006... Financing Residential Real Estate, 13th Edition by Megan Dorsey and David Rockwell Published by Rockwell Publishing Company, Bellevue, WA, 2005, 595 pages $39.95, softcover Given the strong ties between housing markets and...

Confessions of a Real Estate Entrepreneur.(Book review)
June 22, 2006... Confessions of a Real Estate Entrepreneur by James A. Randel Published by McGraw-Hill, New York, 2006, 262 pages $21.95, hardcover Many books, articles, and television programs are aimed at individuals seeking wealth via real...

Comments on "Contingent Valuation: Not an Appropriate Valuation Tool".(Letters to the editor)(Letter to the editor)
June 22, 2006... I agree with the argument made in "Contingent Valuation: Not an Appropriate Valuation Tool" by Albert R. Wilson (Winter 2006) on the misuse of contingent valuation to value detrimental conditions in real estate. There are a few points the...

Comments on "Factors That Influence University Student Interest in the Appraisal Profession".(Letter to the editor)
June 22, 2006... The article by Donald H. Bleich, "Factors That Influence University Student Interest in the Appraisal Profession" (Spring 2006) was both interesting and informative. Dr. Bleich makes two very important points. First, Dr. Bleich states,...

Comments on "Contemplating the Future of Business Enterprise Valuation".(Letter to the editor)
June 22, 2006... Robert W. Owens's article, "Contemplating the Future of Business Enterprise Valuation" (Spring 2006), was a masterly job of concisely and understandably tracing in a moderate tone the dilemma faced by attorneys and appraisers in dealing with...

Erratum.(Correction notice)
June 22, 2006... In the article by Magdalene Vasquez and Anne Calek, "Changes in Qualifying Education, Curriculum, and Designations," published in the Spring 2006 issue, errors appear in the table on page 194. The corrected table follows. Requirement ...