CONDEMNATION AWARDS AND APPRAISAL THEORY

APPRAISAL THEORY AND PRACTICE ARE REVIEWED BECAUSE OF THE GROWING IMPORTANCE AND FREQUENCY OF COMPULSORY ACQUISITION OF LAND AND THE LARGE NUMBER OF COURT CASES. BASIC VALUATION PRINCIPALS NECESSARY TO IDENTIFY PREVALENT APPRAISAL ERRORS ARE' 1/ THE APPRAISERS FINDINGS MUST BE DIRECTED TO THE CLIENTS PROBLEM AND THE VALUE FIGURES DERIVED MUST BE RELEVANT TO THIS PROBLEM, 2/ PAST HUMAN BEHAVIOR IS THE ONLY POSSIBLE BASIS FOR APPRAISAL JUDGMENT, AND 3/ THE ONLY POSSIBLE APPRAISAL CONCLUSION IS THE PROBABLE SELLING PRICE OF THE PROPERTY UNDER THE SEATED CONDITIONS. THE CONCEPT OF VALUE IN CONDEMNATION, COST LESS DEPRECIATION AND COMPARATIVE SALES ARE DISCUSSED. THE THREE APPROACHES TO VALUE--COST, INCOME AND MARKET--HAVE BECOME SO IMBEDDED IN CONTEMPORARY APPRAISAL LITERATURE AND PRACTICE THAT APPRAISERS ARE STUCK WITH THEM. THE QUALITY OF THE APPRAISERS PREDICTION OF AN EXACT VALUE WILL VARY WIDELY FROM CASE TO CASE. THE TRADITIONAL PROTEST AGAINST UNSOUND APPRAISAL METHODS COULD BE ALLEVIATED BY INSISTENCE ON ADEQUATE TRAINING FOR STAFF AND FEE APPRAISERS AND BY REFUSING TO ACCEPT APPRAISAL FINDINGS BASED ON ERRONEOUS THEORY AND FAULTY PRACTICE.