DIVERGENCIES IN RIGHT-OF-WAY VALUATIONS

BY FUNCTIONING AS A MAJOR DETERRENT TO ADVOCACY AMONG THE MEMBERS, THE APPRAISAL REVIEW COMMITTEE (ARC) OF THE AMERICAN INSTITUTE OF REAL ESTATE APPRAISERS (AIREA) HAS CONTRIBUTED TO LESSENING UNWARRANTED DIVERGENCY AMONG APRAISERS IN CONDEMNATION PROCEEDINGS. THIS REPORT PRESENTS THE ASSESSMENT OF THE PROBLEM BY A SPECIAL AIREA RESEARCH COMMITTEE, ALONG WITH THEIR RECOMMENDATIONS. THE PROBLEM IS PRESENTED STATISTICALLY, IN ECONOMIC TERMS, AND IN TERMS OF THE APPRAISAL PROCESS. THE REASON FOR WIDE DIVERGENCIES ARE COMPARED AND EXPLAINED. OTHER TOPICS TREATED BRIEFLY ARE THE RELATION OF DIVERGENCY TO APPRAISAL TESTIMONY, THE RELATIONSHIP OF APPRAISER AND ATTORNEY IN CONDEMNATION CASES, THE FUNCTION AND RESPONSIBILITIES OF THE REVIEW APPRAISER, AND FINALLY, THE RELATIONSHIP OF DIVERGENCIES TO LACK OF SPECIAL TRAINING, LACK OF APPRAISER CLASSIFICATION BY FUNCTIONAL LEVEL, USE OF COURT-APPOINTED APPRAISERS, ENACTION OF A LICENSING LAW, AND UNREALISTIC POLICING PROCEDURES. TH RECOMMENDATIONS OF THE RESEARCH COMMITTEE ARE NOT AIMED AT REDUCING DIVERGENCY BETWEEN APPRAISAL TESTIMONY AND AWARDS, BUT AT REDUCING DIVERGENT VALUATION AMONG APPRAISALS MADE INDEPENDENTLY, WHERE AIREA PROFESSIONAL STANDARDS ARE NOT DIRECTLY INFLUENTIAL. THE RECOMMENDATIONS ARE IN FOUR SETS, PERTINENT TO THE INDEPENDENT APPRAISER, TO THE PROPERTY OWNER'S ATTORNEY, TO THE COURTS, AND TO THE ACQUIRING AGENCY. RECOMMENDATIONS FOR THIS LAST ARE ADHERING TO THE PRINCIPLE OF JUST COMPENSATION, SUPPORTING SPECIAL EDUCATION FOR THE REVIEWING, STAFF, AND HIRED APPRAISERS. TWO APPENDICES, WHICH CONSTITUTE OVER HALF OF THE REPORT, PRESENT ARC CASE RESUMES AND THE AIREA CODE OF CONDUCT, PROFESSIONAL STANDARDS, AND A CHECKLIST FOR IDENTIFYING THE CAUSES OF DIVERGENCY IN A PARTICULAR CASE.

  • Availability:
  • Supplemental Notes:
    • 57 PP, 1 FIG, 2 TAB, 2 APP
  • Publication Date: 1971

Media Info

  • Serial:
    • NCHRP Report
    • Issue Number: 126
    • Publisher: Transportation Research Board
    • ISSN: 0077-5614

Subject/Index Terms

Filing Info

  • Accession Number: 00200889
  • Record Type: Publication
  • Files: TRIS, ATRI
  • Created Date: Apr 17 1972 12:00AM