CHICAGO (Feb. 26, 2007) – With the publication of the Winter 2007 issue, The Appraisal Journal begins a yearlong salute to its diamond anniversary by providing a review of appraisal ideas that have influenced the profession. In addition, featured articles examine several unique appraisal topics, including the valuation of defunct transportation corridors, how short-term conservation restrictions affect sales prices and the financial ramifications of home removal on home owners' associations.
The spotlighted article in the Winter 2007 issue was written by past Editor-in-Chief David Lennoff, MAI, SRA. "Nine Big Ideas: Appraisal Journal Articles That Influenced a Generation," is a survey of leaders in the appraisal profession regarding which articles have marked important changes in appraisal thought or have addressed key issues in appraising. Lennoff's discussion of the results and important past Journal articles reveals that many of the best articles are still applicable to appraising today.
Another article, "Net Liquidation Valuation of Transportation Corridors," by Arthur Rahn, looks at valuation of defunct transportation corridors. His study finds that the traditional across-the-fence valuation method is only appropriate if the property still has an ancillary corridor use, such as utility lines. However, if property is no longer used as a corridor, appraisers should carefully analyze all possible alternative uses of the property to identify its highest and best use and arrive at an appropriate valuation.
In the article, "Compensated Short-Term Conservation Restrictions May Reduce Sale Prices," the authors Steven J. Taff, PhD and Sanford Weisberg, PhD, note that income tax and property tax laws assume short-term conservation restrictions do not reduce property values. To investigate whether this is valid, Taff and Weisberg compare sales of Minnesota farmland with conservation restrictions. Their study results show that such restrictions have a significantly negative effect on per-acre sale prices of property, and where the restrictions cover half of the parcel there was an 8.16 percent price reduction.
"Measuring the Financial Impact of Lot or Home Removal on Home Owners' Associations," by William C. Weaver, PhD, looks at what happens to home owners' associations (HOAs) when the total number of lots in a development is reduced due to eminent domain or contractor mistakes. Weaver examines the long-term financial effect on HOAs of a reduction in the number of lots and presents alternative methods for valuing this loss over time.
The Appraisal Journal, published quarterly by the Appraisal Institute, serves as a forum for advancing appraisal theories and practices. Containing articles, columns and letters written by experienced appraisers and educators, The Appraisal Journal presents ideas, concepts and analytical techniques to be considered. Each issue offers alternative valuation methods for serious thinkers seeking creative solutions to appraisal problems, appealing to appraisers, educators and other real estate professionals.
For more information about The Appraisal Journal or for review copies, please contact Nancy Bannon at 312-335-4445.
As the leading organization for professional real estate appraisers, the Appraisal Institute represents more than 21,000 members worldwide. Members benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA and SRA designations. Appraisal Institute members adhere to a strictly enforced Code of Professional Ethics and Standards of Professional Appraisal Practice. For more information regarding the Appraisal Institute, please visit www.appraisalinstitute.org