The appraisal of water rights: valuation methodology.(Cover story)

ABSTRACT

This article is part two of a two-part article on the appraisal of water rights. It builds upon the foundation laid in the previous article In The Appraisal Journal titled, "The Appraisal of Water Rights: Their Nature and Transferability" (Winter 2008). The current article presents the valuation methodology appropriate for estimating the value of water rights, both on a stand-alone basis and as the contributing value to the larger parcel. Two case studies are presented to illustrate the methodology and show appropriate adjustments to comparables.

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This article is the second in a two-part series addressing the appraisal of water rights. (1) It presents the valuation methodology appropriate for estimating the value of water rights. The appraisal of water rights on a stand-alone basis is addressed as well as the contributing value that water rights bring to the larger parcel. The rules and regulations that exist in California provide the background for the presentation, and although there is variability among states, many of the principles presented have general applicability.

Appraisal Methodology