Fracking Can Help, Harm Real Estate Values: The Appraisal Journal

CHICAGO (March 28, 2017) – Hydraulic fracturing, or fracking, could make land more valuable due to mineral interests, but environmental concerns could negatively affect land values, according to an article published this week in The Appraisal Journal.

The Appraisal Journal is the quarterly technical and academic publication of the Appraisal Institute, the nation’s largest professional association of real estate appraisers. The materials presented in the publication represent the opinions and views of the authors and not necessarily those of the Appraisal Institute.

“Hydraulic Fracturing and Real Estate Issues,” by Randall Bell, Ph.D., MAI, and Michael P. Bell, examines the impact of fracking on real estate values. The authors write that fracking has been helpful in reducing the nation’s dependence on foreign oil and increased some land value while stimulating the economy. However, they add, there could be negative impacts on real estate value due to concerns over contamination and environmental impacts.

Market data for real estate affected by fracking is plentiful in markets across the country. The impact of fracking on any particular property value should be determined with an objective review of the relevant issues and based on proper analysis of market data, the authors write.

Read “Hydraulic Fracturing and Real Estate Issues” in the Winter 2017 issue of The Appraisal Journal.

Also in The Appraisal Journal’s Winter 2017 issue:

“Valuing the Leased Fee Interest Subject to a Ground Lease – How and Why the Details Matter,” by Gary S. DeWeese, MAI, reviews the variety of income streams in modern ground leases, including rent escalation provisions, reappraisal provisions and transfer fees.

“Pipelines, Eminent Domain, and Damages to the Remainder: A Texas Lawsuit Trilogy,” by Joseph B. Lipscomb, Ph.D., MAI, and J. R. Kimball, MAI, uses court case rulings to illustrate how damages to the remainder may be measured in eminent domain cases involving takings of land for pipelines.

“Identifying Rights and Interests to Be Appraised in Rural Property,” is an excerpt from the 2017 Appraisal Institute book “Rural Property Valuation” and discusses the common property rights and partial interests related to rural properties, including economic, legal and physical interests.

# # #

 

Stay connected with the latest news from the Appraisal Institute on Facebook, Twitter, LinkedIn, YouTube and our blog, Opinions of Value.

The Appraisal Institute is a global professional association of real estate appraisers, with nearly 19,000 professionals in almost 60 countries throughout the world. Its mission is to advance professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide. Organized in 1932, the Appraisal Institute advocates equal opportunity and nondiscrimination in the appraisal profession and conducts its activities in accordance with applicable federal, state and local laws. Individuals of the Appraisal Institute benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA, SRA, AI-GRS and AI-RRS designations. Learn more at www.appraisalinstitute.org.

Back