Articles

Testing the Reliability of Contingent Valuation in the Real Estate Marketplace

Testing the Reliability of Contingent Valuation in the Real Estate Marketplace

The Appraisal Journal • Summer 2006 • Richard J. Roddewig and James D. Frey

In recent years, contingent valuation has been suggested as an appropriate fourth approach to value. This article reports on results of market-based testing of the reliability of contingent valuation in actual situations in which it has been used to predict prices that would be paid for residential real estate. The testing reveals that contingent valuation did not accurately predict real world prices paid by actual willing and informed buyers and sellers. Therefore, the reliability of contingent valuation as a technique to develop an opinion of the market value, especially in courtroom situations invoking the Daubert test for admissibility of expert testimony, must be carefully considered by appraisers, attorneys, and judges.

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Environment and the Appraiser: Mortgage Lenders and the Institutionalization and Normalization of Environmental Risk Analysis

Environment and the Appraiser: Mortgage Lenders and the Institutionalization and Normalization of Environmental Risk Analysis

The Appraisal Journal • April 2001 • Richard J. Roddewig and Allen C. Keiter

There are, of course, situations in which environmental stigma is present, and there are still other situations where mortgage lenders will refuse to lend or will require significant extra costs to the borrower. But the marketplace as a whole, including buyers and sellers individually as well as lenders, has become more knowledgeable about the proper evaluation of environmental risks and more comfortable in evaluating those risks. As a result, the prices established in today’s real estate marketplace can increasingly be relied on to reflect a reasoned evaluation of environmental risks affecting real estate.

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Environment and the Appraiser: Adjusting Environmental Case Study Comparables by Using an Environmental Risk Scoring System

Environment and the Appraiser: Adjusting Environmental Case Study Comparables by Using an Environmental Risk Scoring System

The Appraisal Journal • October 2000 • Richard J. Roddewig

The case study is not a ‘comparable’ in the way we as appraisers typically think of comparables. It is not intended, for example, to provide an indication of price per square foot or price per acre that can then be applied (after adjustments) to the area of the property being appraised.

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Junk Science, Environmental Stigma, Market Surveys, and Proper Appraisal Methodology: Recent Lessons from the Litigation Trenches

Junk Science, Environmental Stigma, Market Surveys, and Proper Appraisal Methodology: Recent Lessons from the Litigation Trenches

The Appraisal Journal • October 1999 • Richard J. Roddewig

Litigation support assignments sometimes test the limits of acceptable appraisal methodology and practice. Frequently in litigation-related assignments the appraiser is required to follow appraisal standards and methods set out either in statues, regulations, or prior case decisions.

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EPA’s Brownfields Initiative: Will It Improve the Market for Contaminated Properties?

EPA’s Brownfields Initiative: Will It Improve the Market for Contaminated Properties?

Valuation Insights & Perspectives • 1997 • Richard J. Roddewig

The EPA’s brownfields ‘Action Agenda’ includes increased cooperation between federal agencies in promoting brownfield redevelopment, and partnership arrangements with state and local governments to turn over more responsibility for remediation approval and clean up to state government and to foster state initiatives to encourage redevelopment.

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Environment and the Appraiser: Temporary Stigma: Lessons from the Exxon Valdez Litigation

Environment and the Appraiser: Temporary Stigma: Lessons from the Exxon Valdez Litigation

The Appraisal Institute • January 1997 • Richard J. Roddewig

The Exxon Valdez litigation was filed at a time when the appraisal profession was finally becoming comfortable with assignments involving valuation of contaminated properties. However, the Exxon Valdez litigation raised some cutting-edge issues concerning environmental stigma, temporary impacts of contamination on property markets and values, and the appropriate measures of temporary real estate impacts on properties in remote or limited markets like Prince William Sound.

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Stigma, Environmental Risk and Property Values: 10 Critical Inquiries

Stigma, Environmental Risk and Property Values: 10 Critical Inquiries

The Appraisal Institute • October 1996 • Richard J. Roddewig

The article defines ‘stigma’ and ‘environmental risk’ and then summarizes 10 critical inquiries in an investigation of real estate impacts. Included is a discussion of the types of environmental site assessments, the impact of Superfund designation and remediation programs on value, the importance of guarantees or insurance in offsetting some types of risks, and an evaluation of the various cycles- including the public relations and regulatory – that affect the valuation process.

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A Better Way to Plan Airports

A Better Way to Plan Airports

Urban Land • March 1993 • Christopher J. Duerksen, Raymond L. Reaves and Richard J. Roddewig

Experiences in Japan, Denver, and Pittsburgh provide food for thought on the question of how to inject economic development and traditional land use planning issues into the airport planning process.

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Market Value and Public Value: An Exploratory Essay

Market Value and Public Value: An Exploratory Essay

The Appraisal Journal • January 1993 • Richard J. Roddewig and Gary R. Papke

It is one of an appraiser’s responsibilities to be vigilant in defending the concept of market value. Value is a term that can be loosely used by others; but the basis of our profession is a degree of certainty and, to the extent possible, precision in the definition of what is being determined. Market value is the only true touchstone that offers a systematic and predictable way to quantify matters in which real estate values are central.

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Ready for Takeoff:  Developing the 21st Century Airport

Ready for Takeoff: Developing the 21st Century Airport

Urban Land • November 1992 • Christopher J. Duerksen and Richard J. Roddewig

Airport development and expansion offer intriguing possibilities for profitable associated development, and good airport planning is the key to taking advantage of them.

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