CHICAGO – RealEstateRama – The values of residential properties located near sites with known per- and polyfluoroalkyl substances are impacted in varying ways, 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.
“PFAS Contamination and Residential Property Values: A Study of Five US Sites within the Assessment Stage of the Remediation Lifecycle,” by Orell C. Anderson, MAI, Chris Yost-Bremm, Ph.D., Stephen G. Valdez, Jason Borras and Tara Harder, takes a first look at the impact of PFAS chemicals on local real estate values. PFAS contamination is an evolving area of law and governmental regulation, with state and national standards still under development. This case study discusses how any property impacts are affected by market conditions, location and property characteristics and finds no uniformity in PFAS impacts.
Read “PFAS Contamination and Residential Property Values: A Study of Five US Sites within the Assessment Stage of the Remediation Lifecycle” in the Winter 2022 issue of The Appraisal Journal.
“The Total Excess Earnings Model Revisited—It’s Not Just for Going Concerns,” by Franz H. Ross, MAI, and Larry Woodall, suggests an alternative asset allocation technique for properties with a going concern and some intangible assets. The article presents a case study illustrating a step-by-step process for valuing the asset components of such properties.
“Special Issues in Land Valuation,” by Gary S. DeWeese, MAI, explores situations presenting special land valuation challenges and unique issues. The challenges discussed here include contaminated sites, situations when the highest and best use is not the current use, excess land versus surplus land, plottage value, development rights or entitlements, tax increment financing districts and ecological land. Appraisers need to be prepared to address such situations in land valuation in the context of a sale or exchange, financing, taxes, financial feasibility, condemnation and contribution to improved properties.
The Appraisal Institute, celebrating its 90th anniversary in 2022, is a global professional association of real estate appraisers, with over 16,000 professionals in almost 50 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.
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