understanding the appraisal problem
TRANSCRIPT
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Understanding The Appraisal ProblemWednesday December 11, 2019
Scott Cullen
1Post-Conference Dec. 21, 2019
This post-conference .PDF includes:
• conference slides (lower right numbers match presentaion)
• hidden slides (lower right numbers □ in sequence)
• post-conference slides (added at end)
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Understanding The Appraisal Problem
I am not a CTLA representative from any
organization and I do not speak for CTLA.
I do not speak for ASCA or ISA.
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Understanding The Appraisal Problem
<= 1st half lecture
>= 2nd half Q & A and audience participation
Questions about the appraisal problem.
Post-Conference Dec. 21, 2019
No case capsules, stories,
opinions, position statements…
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Understanding The Appraisal Problem
<= 1st half lecture
Please hold your questions.
>= 2nd half Q & A and audience participation
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Trees, Real Estate, and Market Value:
The Real Deal
Tree Appraisal:
Understanding the Appraisal
Problem, Scope of Work, and
Assignment
Handouts
5
1
4
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Handouts
6
a trial court
SUPREME COURT OF NOVA SCOTIA
Citation: Romkey v. Osborne, 2019 NSSC 56
Date: 20190221 Docket: Hfx No. 460044
Registry: Halifax Between:
Paul Romkey and Christine Romkey, Applicants
v.
Robert Osborne, Respondent
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TREE SERVICE CANADA
Handouts
A Key to Tree Appraisal:
In litigation assignment is
critical
2 3
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Five Handouts
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Tree Appraisal:
Understanding the Appraisal
Problem, Scope of Work, and
Assignment
1
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Working Reference
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Identification of the appraisal
problem is the best part of
10th Edition and its most
important contribution.
Today’s Message:
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Understanding The Appraisal Problem
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Understanding The Appraisal Problem
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Working ReferenceToday’s Message:
The culture of plant appraisal
should be about identifying
and solving the appraisal
problem.
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"Step. 1. The scientific method begins with
identification of the problem. Sometimes
identifying the problem correctly can be
90% of the solution. The appraisal process
also begins with identification of a
problem.“ (p.7)
Understanding The Appraisal Problem
Today’s Message:
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Understanding The Appraisal Problem
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Appraisal: the act or process of developing an
opinion of value, cost, or some other specified
assignment result. Interchangeable with valuation.
(Glossary)
What is appraisal?
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Understanding The Appraisal Problem
What is appraisal, really?
Every appraisal is an answer to a question or an
aid to a decision.
Appraisal is all about problem solving.
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Understanding The Appraisal Problem
Every appraisal is an answer to a question or an
aid to a decision.
Appraisal is problem solving.
15
What is appraisal, really?
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So we MUST understand what the problem is:
that is, what the question is, or what decision needs to be made.
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The Appraisal Problem is Not a New Concept
Page 19. The purpose of an appraisal
is defined by the client’s needs and
questions. If the client’s questions are
understood, the purpose of the
assignment can also be clearly stated.
16
Page 1. Plant appraisals are used for
various reasons…
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The Appraisal Problem is Not a New Concept
Page 19. The purpose of an appraisal
is defined by the client’s needs and
questions. If the client’s questions are
understood, the purpose of the
assignment can also be clearly stated.
17
Page 1. Plant appraisals are used for
various reasons…
…the type of value sought must be
defined at the outset.
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The Appraisal Problem is Not a New Concept
Page 20. The valuation process
begins when an appraiser performs a
needs assessment for the appraisal
and ends with a conclusion to the
client.
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Identifying the Appraisal Problem is an Essential Step
Use A300?
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93.2 Objectives shall be based on the context of the
situation and client expectations.
93.1 An objective shall be established before beginning…
The appraisal problem is analogous.
Identifying the Appraisal Problem is an Essential Step
Not discretionary. Not optional.
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Preface. …the key step in the appraisal
process is identifying the appraisal
problem.
Understanding The Appraisal Problem
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Chapter 3. p. 17. The Appraisal Process.
The Appraisal Process - The Problem in Context
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6 STEPS
Step 1. Define the appraisal problem.
Step 2. Define the Scope of Work.
Step 3. Collect relevant data.
Step 4. Analyze data (approaches,
methods, and techniques).
Step 5. Reconciliation [when necessary,
see post-conference slide ].
Step 6. Report.
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What Is The Appraisal Problem?
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What Is The Appraisal Problem?
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“Appraisal problem” is not
defined in-text or in the
Glossary.
You won’t even find “appraisal
problem” in the Index.
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The appraisal problem is the
context for the assignment,
the question being asked, and
the issue to be resolved. By Jim Clark, Ph.D., RCA #357
The appraisal problem is a
careful and specific statement
of the client’s question about
value and its context. By Scott Cullen, RCA #348
In your handouts. Not in 10th Edition.
What Is The Appraisal Problem?
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Appraisal Problem <> Scope of Work <> Assignment
They are not synonyms
They are not interchangeable
What Is The Appraisal Problem?
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Scope of Work
Other Assignment
Parameters
Six Step
Appraisal Process
Preliminary Client
Communication
First Step
Second Step
Subsequent
Steps [3, 4, 5]
Report Last Step [6]
Appraisal Problem Scope of Work
Initial Identification
Appraisal Problem
Scope of Work
Complete Identification
Execution
12
5
6
© Scott Cullen, 2018, 2019
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Identify the Problem
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Scope of Work
Other Assignment
Parameters
Preliminary Client
Communication
Report
Appraisal Problem Scope of Work
Initial Identification
Appraisal Problem
Scope of Work
Complete Identification
Execution
“Following initial contact with the
client but before entering into a[n]
…agreement, the…appraiser must
decide whether to accept the
assignment.” (p.18)
© Scott Cullen, 2018, 2019
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Other Assignment
Parameters
Preliminary Client
Communication
Appraisal Problem Scope of Work
Initial Identification
Assignment
© Scott Cullen, 2018, 2019
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Scope of Work
Other Assignment
Parameters
Preliminary Client
Communication
Report
Appraisal Problem Scope of Work
Initial Identification
Appraisal Problem
Scope of Work
Complete Identification
Execution
Assignment if you are not hired?
© Scott Cullen, 2018, 2019
Appraisal Process
Are you always hired?
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Scope of Work
Other Assignment
Parameters
Preliminary Client
Communication
Report
Appraisal Problem Scope of Work
Initial Identification
Appraisal Problem
Scope of Work
Complete Identification
Execution
IF HIRED
Assignment
© Scott Cullen, 2018, 2019
Appraisal Process
Post-Conference Dec. 21, 2019
Identify the Problem12
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Scope of Work
Other Assignment
Parameters
Appraisal Process
Preliminary Client
Communication
First Step
Second Step
Subsequent
Steps [3, 4, 5]
Report Last Step [6]
Appraisal Problem Scope of Work
Initial Identification
Appraisal Problem
Scope of Work
Complete Identification
Execution
IF HIRED
Assignment
Identify the Problem
© Scott Cullen, 2018, 2019
Post-Conference Dec. 21, 2019
Solve the ProblemScope of Work
The type and extent of data
collection, research, and
analysis.
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Scope of Work
Other Assignment
Parameters
Appraisal Process
Preliminary Client
Communication
First Step
Second Step
Subsequent
Steps [3, 4, 5]
Report Last Step [6]
Appraisal Problem Scope of Work
Initial Identification
Appraisal Problem
Scope of Work
Complete Identification
Execution
IF HIRED
Assignment
Solve the Problem
Identify the Problem
Report the Solution
© Scott Cullen, 2018, 2019
Scope of Work
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6
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12
1
2
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Scope of Work
Other Assignment
Parameters
Appraisal Process
Preliminary Client
Communication
First Step
Second Step
Subsequent
Steps [3, 4, 5]
Report Last Step [6]
Additional Services Related to the Appraisal, E.G.
Deposition
Trial Testimony
Hearing Appearances
Tree Risk Assessment
Project Management
Appraisal Problem Scope of Work
Initial Identification
Appraisal Problem
Scope of Work
Complete Identification
Execution
IF HIRED
Assignment
Solve the Problem
Identify the Problem
Report the Solution
© Scott Cullen, 2018, 2019
Scope of Work
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12
1
2
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The appraisal problem is a
careful and specific statement
of the client’s question about
value and its context.By Scott Cullen, RCA #348
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The Appraisal Problem Defined
A clearly defined term.
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2018
Sec. 6.2 Rules include the USPAP problem elements.
USPAP 2020-2021 Edition
36
The Scope of Work Defined
The type and extent of data
collection, research, and
analysis.
A clearly defined term.
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The Assignment Defined
The service(s) provided by
agreement between appraiser
and client.
A clearly defined term.
2018
Sec. 6.2 Rules include the USPAP problem elements.
USPAP 2020-2021 Edition
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Chapter 3. p. 17. Chapter Outline.
Step 1. Define the appraisal problem.
Step 2. Define the Scope of Work.
Step 3. Collect relevant data.
Step 4. Analyze data (approaches,
methods, and techniques).
Step 5. Reconciliation [when necessary,
see post-conference slide ].
Step 6. Report.
38
The Appraisal Process
Solve the Problem
(Scope of Work)
Identify the Problem
Report the Solution
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6 STEPS
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Elements of the Appraisal Problem
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Chapter 3. pp. 18-24, Step 1. The Appraisal Problem.
I will focus on why identification of the
appraisal problem is the best and most
important part of the 10th Edition.
Highlights. I won’t go over everything you
can read in the 10th Edition.
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Elements of the Appraisal Problem
Chapter 3. pp. 18-24, Step 1. The Appraisal Problem.
a) Client and intended users of the appraisal.
b) Intended use of the appraisal.
c) Type and definition of assignment result.
d) Effective date of the appraisal.
e) Relevant property characteristics.
f) Assumptions and limiting conditions.
All these elements must be understood to
meaningfully solve any appraisal problem.Post-Conference Dec. 21, 2019
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Elements of the Appraisal Problem
Chapter 3. pp. 18-24, Step 1. The Appraisal Problem.
a) Client and intended users of the appraisal.
b) Intended use of the appraisal.
c) Type and definition of assignment result.
d) Effective date of the appraisal.
e) Relevant property characteristics.
f) Assumptions and limiting conditions.
Is this too complicated for plant appraisers?
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Hall, Norm. 2018. Using caving and mountaineering rescue techniques to transport wood. TCI Magazine XXIX(12):38-43 (December).
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If arborists can manage this complexity, they can
manage the complexity of the appraisal problem.Post-Conference Dec. 21, 2019
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Elements of the Appraisal Problem
Chapter 3. pp. 18-24, Step 1. The Appraisal Problem.
a) Client and intended users of the appraisal.
b) Intended use of the appraisal.
c) Type and definition of assignment result.
d) Effective date of the appraisal.
e) Relevant property characteristics.
f) Assumptions and limiting conditions.
Not too complicated.
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Understanding The Appraisal Problem
Every appraisal is an answer to a question or an
aid to a decision.
Appraisal is problem solving.
45
What is appraisal, really?
Post-Conference Dec. 21, 2019
So we MUST understand what the problem is:
that is, what the question is, or what decision needs to be made.
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Understanding Elements of the Appraisal Problem
a) Client and intended users of the appraisal.
The client hires you (p.19).
[Usually who pays you.]
The appraiser owes a duty of care
to the client (p.19).
Duty of care: an obligation to perform
to reasonable standards; to meet the
requirements of the assignment
(Glossary).Post-Conference Dec. 21, 2019
WHO
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Understanding Elements of the Appraisal Problem
a) Client and intended users of the appraisal.
An intended user is a person or entity
who will use the information in the
appraisal (p.19).
The client is always an intended
user (p.19).
Other intended users might be an
attorney or law firm, municipality,
neighbor, other party (p.19), a
property owner, or a co-party.Post-Conference Dec. 21, 2019
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Understanding Elements of the Appraisal Problem
b) The intended use of the appraisal.
The intended use answers the question:
why does the client need the appraisal?
(p.19).
[methods
and techniques, in fact, the entire
Scope of Work].
Understanding the intended use…is
critical to identifying and defining the
appraisal approach (p.19).
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WHY
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Understanding Elements of the Appraisal Problem
b) The intended use of the appraisal.
Credible is believable, trustworthy,
and/or supported by relevant data and
sound analyses. (p.109).
The credibility of an appraisal is always
judged or measured in terms of the
intended use of the appraisal (p.19).
Post-Conference Dec. 21, 2019
WHY
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Understanding Elements of the Appraisal Problem
b) The intended use of the appraisal.
Credible: Worthy of belief. Comment: credible
assignment results require support, by relevant
evidence and logic, to the degree necessary for the
intended use. (USPAP 2018-2019).Post-Conference Dec. 21, 2019
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Understanding Elements of the Appraisal Problem
c) The type and definition of assignment result.
Once the intended use of the appraisal
is determined, the appropriate and
relevant assignment result can be
identified (p.20).
Post-Conference Dec. 21, 2019
WHAT
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Understanding Elements of the Appraisal Problem
c) The type and definition of assignment result.
Once the intended use of the appraisal
is determined, the appropriate and
relevant assignment result can be
identified (10th p.20).
(9th p.19) …the type of value sought
must be defined at the outset.
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WHAT
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Understanding Elements of the Appraisal Problem
c) The type and definition of assignment result.
The end product of the appraisal
process is an assignment result (p.7).
An appraiser’s opinions and
conclusions developed specific to
an assignment (p.7, Glossary).
A cost or a value (p.8). The assignment result will
always be a cost or a value (p.20). [IOW monetary]
?
An opinion or estimate, not a fact (p.7).
Post-Conference Dec. 21, 2019
WHAT
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Understanding Elements of the Appraisal Problem
c) The type and definition of assignment result.
Once the intended use of the appraisal
is determined, the appropriate and
relevant assignment result can be
identified (10th Ed. p.20).
Keep in mind that the valuer does not
decide which type of value [or cost]
will apply; he or she merely identifies
the type needed, given the nature of
the client’s problem (p.41)
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Elements of the Appraisal Problem
Chapter 3. pp. 18-24, Step 1. The Appraisal Problem.
a) Client and intended users of the appraisal.
b) Intended use of the appraisal.
c) Type and definition of assignment result.
Who wants to know and why?*
*(Azjen and Peterson 1988)
post-conference slide for complete citation
Post-Conference Dec. 21, 2019
WHO
WHY
WHAT
See also 10TH, p.18, Table 3.1
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56
Elements of the Appraisal Problem
Chapter 3. pp. 18-24, Step 1. The Appraisal Problem.
a) Client and intended users of the appraisal.
b) Intended use of the appraisal.
c) Type and definition of assignment result.
d) Effective date of the appraisal.
e) Relevant property characteristics.
f) Assumptions and limiting conditions.
Save your questions about d), e), and f).
Post-Conference Dec. 21, 2019
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Why the Appraisal Problem Is Most Important Part of 10th
First, a well defined appraisal problem
is the key to a meaningful appraisal.
It was the most necessary part of a new
edition of the Guide.
57
Much more than a new methods structure.
Much more than a new depreciation scheme.
Post-Conference Dec. 21, 2019
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Why the Appraisal Problem Is Most Important Part of 10th
First, a well defined appraisal problem
is the key to a meaningful appraisal.
58
The culture of plant appraisal should be
about identifying and solving the
appraisal problem.
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Second, a well defined appraisal
problem enables you to clearly describe
your client’s appraisal problem.
59
Why the Appraisal Problem Is Most Important Part of 10th
The appraisal problem is a
careful and specific statement of
the client’s question about value
and its context.
Post-Conference Dec. 21, 2019
RPAC
RPAC = Regional Plant Appraisal Committee
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60
Why the Appraisal Problem Is Most Important Part of 10th
Third, a well defined appraisal problem
enables you to defend your solution to
your client’s appraisal problem.
Post-Conference Dec. 21, 2019
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The 10th Edition
can be read,
has been read,
is being read, and
will continue to be read…
61
Why the Appraisal Problem Is Most Important Part of 10th
…to impose normative or preferred
assignment results on your client’s
appraisal problem.
Post-Conference Dec. 21, 2019
This slide speaks to how 10th is being used, not to CTLA’s goals and intentions.
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The 10th Edition
can be read,
has been read,
is being read, and
will continue to be read…
62
Why the Appraisal Problem Is Most Important Part of 10th
…to put some types of assignment result
on firm ground and other types of
assignment result on thin ice.
Post-Conference Dec. 21, 2019
This slide speaks to how 10th is being used, not to CTLA’s goals and intentions.
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The 10th Edition
can be read,
has been read,
is being read, and
will continue to be read…
63
Why the Appraisal Problem Is Most Important Part of 10th
…to put some problems on firm ground
and other problems on thin ice. IOW…
Post-Conference Dec. 21, 2019
This slide speaks to how 10th is being used, not to CTLA’s goals and intentions.
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The 10th Edition
can be read,
has been read,
is being read, and
will continue to be read…
64
Why the Appraisal Problem Is Most Important Part of 10th
…to rig the game.
10th Edition is being
used as a weapon.
Post-Conference Dec. 21, 2019
This slide speaks to how 10th is being used, not to CTLA’s goals and intentions.
10th is being used as an appraisal killer.
10th is being used not merely to challenge or
review the adequacy, quality, or relevance of an
opposing appraisal’s data or analyses, but rather
to kill the opposing appraisal by suggesting that
10th requires certain types of assignment result
and precludes or discredits other types of
assignment result, data, or methodology.
10th is being wielded in a manner that is
inconsistent with Step 1 of the appraisal process
and the appraiser’s Duty of Care to clients.
Romkey v. Osborne (following) illustrates such
use of 10th, and one court’s rejection of such use.
10th has been used similarly in other cases yet to
be decided. Tree appraisers must remain
prepared to effectively defend against such use of
10th.
“Weapon. An instrument used or designed to be used to injure or kill…” (Blacks Law Dictionary, 10th Edition)
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The 10th Edition
can be read,
has been read,
is being read, and
will continue to be read…
65
Why the Appraisal Problem Is Most Important Part of 10th
…to exclude otherwise admissible
evidence by making it professionally
improper to even develop it.
Post-Conference Dec. 21, 2019
This slide speaks to how 10th is being used, not to CTLA’s goals and intentions.
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The 10th Edition
can be read,
has been read.
is being read, and
will continue to be read…
66
Why the Appraisal Problem Is Most Important Part of 10th
This is not interpretation. Not opinion. Not
speculation.
This is fact.
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67
Why the Appraisal Problem Is Most Important Part of 10th
SUPREME COURT OF NOVA SCOTIA
Citation: Romkey v. Osborne, 2019 NSSC 56
Defense Counsel: The 9th and 10th Editions required the
Plaintiff’s expert’s assignment results to be related to REMV
[76].
Plaintiff’s Expert: REMV was irrelevant to my assignment [76].
Post-Conference Dec. 21, 2019
See text box on Slide 64.
Read this case (Handout 5) and Dr. Dunster’s “Assignment” article (Handout 3).
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68
Why the Appraisal Problem Is Most Important Part of 10th
SUPREME COURT OF NOVA SCOTIA
Citation: Romkey v. Osborne, 2019 NSSC 56
The Judge. [Plaintiff’s expert] was asked… to
assess the cost to replace the trees… He was not
asked to determine the resulting diminution in
property value… In his assessment, which I accept,
[REMV was] not relevant to the task he was asked
to undertake.
Post-Conference Dec. 21, 2019
Credible: Worthy of belief… credible assignment
results require support, by relevant evidence and logic,
to the degree necessary for the intended use. (USPAP
2018-2019)
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69
Why the Appraisal Problem Is Most Important Part of 10th
SUPREME COURT OF NOVA SCOTIA
Citation: Romkey v. Osborne, 2019 NSSC 56
The Judge. [Plaintiff’s expert] was asked… to
assess the cost to replace the trees… He was not
asked to determine the resulting diminution in
property value… In his assessment, which I accept,
[REMV was] not relevant to the task he was asked
to undertake. I find that [his] appraised value is a reliable
estimate of the cost to [Plaintiff] to replace the trees and return
their property to its pre-trespass condition [154].
Whether replacement value is the appropriate
measure of damages is a separate question [154;
reading between the lines, the COURT answers the question].
Post-Conference Dec. 21, 2019
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70
Why the Appraisal Problem Is Most Important Part of 10th
SUPREME COURT OF NOVA SCOTIA
Citation: Romkey v. Osborne, 2019 NSSC 56
The Judge. [in this case] the subjective value the owner
assigns to the property is a relevant consideration when
deciding on the quantum [amount] of damages for
trespass [156].
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Why the Appraisal Problem Is Most Important Part of 10th
SUPREME COURT OF NOVA SCOTIA
Citation: Romkey v. Osborne, 2019 NSSC 56
The Judge. The subjective value the owner assigns to
the property… [156].
Pre-Conference
Value to whom?
Asked.
Not answered.
The Judge. [citing another case] in determining the quantum
of damages for trespass, each case must be decided on the
basis of what is reasonable on the particular facts being
considered… [155].
Post-Conference Dec. 21, 2019
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72
Why the Appraisal Problem Is Most Important Part of 10th
Post-Conference Dec. 21, 2019
To summarize…
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Why the Appraisal Problem Is Most Important Part of 10th
First, a well defined appraisal problem
is the key to a meaningful appraisal.
73
Second, a well defined appraisal
problem enables you to describe your
client’s appraisal problem.
Third, a well defined appraisal problem
enables you to defend your solution to
your client’s appraisal problem.
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Why the Appraisal Problem Is Most Important Part of 10th
74
A well defined appraisal problem is your
friend.
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Why the Appraisal Problem Is Most Important Part of 10th
75
A well defined appraisal problem is your
friend.
A well defined appraisal problem is your
armor and your weapon to defend your
solution to your client’s appraisal problem.
Post-Conference Dec. 21, 2019
See text box on Slide 64.
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Why the Appraisal Problem Is Most Important Part of 10th
Plant appraisers should not have to fight the Guide.
76
But the way the 10th Edition is being used in practice, you
must make a decision: fall in line, or fight.
The appraiser owes a duty of care to the client
(p.19)... an obligation…to meet the requirements of
the assignment (Glossary).
If you just fall in line, are you meeting your duty of care?
Post-Conference Dec. 21, 2019
See text box on Slide 64.
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Why the Appraisal Problem Is Most Important Part of 10th
A well defined appraisal problem is your
armor and your weapon to defend your
solution to your client’s appraisal problem.
77Post-Conference Dec. 21, 2019
Bonus question: Where did Crusader Rabbit live?
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Understanding The Appraisal Problem Is Simple
Every appraisal is an answer to a question or an
aid to a decision.
Identify the problem.
Solve the problem.
Report the solution.78
The appraisal problem is a careful and specific
statement of the client’s question about value and
its context.
Post-Conference Dec. 21, 2019
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79
Q & A
The Appraisal Problem Is the Most Important Part of 10th
Post-Conference Dec. 21, 2019
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80
Q & AListen to the moderator!
The Appraisal Problem Is the Most Important Part of 10th
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Understanding The Appraisal Problem
81
Identification of the appraisal
problem is the best part of
10th Edition and its most
important contribution.
Today’s Message:
It’s the client’s appraisal problem.
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82
Completed TPAQ?
Was identification of the appraisal problem
well addressed in your TPAQ class?
Post-Conference Dec. 21, 2019
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What Next?
What Next?
83Post-Conference Dec. 21, 2019
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The 10th Edition
can be read,
has been read.
is being read, and
will continue to be read…
84
What Next?
…to exclude otherwise admissible
evidence by making it professionally
improper to even develop it.
Will this change all by itself?
Post-Conference Dec. 21, 2019
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10th Ed. - What Next?
85
1993
Tree Appraisal –
The 8th Edition &
Beyond
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Handouts
Tree Appraisal: Understanding the Appraisal Problem, Scope
of Work, and Assignment (Scott Cullen)1
Trees, Real Estate, and Market Value: The Real Deal
(Scott Cullen) 4
Tree Appraisal: The Assignment Is Critical (Dr. Julian Dunster)3
BOOK REVIEW. Guide for Plant Appraisal, 10th Edition
(Dr. Julian Dunster)2
Romkey v Osborne, 2019 NSSC 56, SUPREME COURT OF NOVA
SCOTIA 5
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Post-Conference Dec. 21, 2019
Preceding were conference slides including hidden
□ slides.
Following are post-conference slides to clarify
questions or provide additional information.
87
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88
The Appraisal Process
Chapter 3. p. 17. Chapter Outline.
Step 1. Define the appraisal problem.
Step 2. Define the Scope of Work.
Step 3. Collect relevant data.
Step 4. Analyze data (approaches, methods, and techniques).
Step 5. Reconciliation [when necessary]
Step 6. Report.
Solve the Problem
(Scope of Work)
Identify the Problem
Report the Solution
Post-Conference Dec. 21, 2019
10th p.26: “Reconciliation, when necessary [emphasis
added], is the final step in developing the assignment result.”
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89
Elements of the Appraisal Problem
Chapter 3. pp. 18-24, Step 1. The Appraisal Problem.
a) Client and intended users of the appraisal.
b) Intended use of the appraisal.
c) Type and definition of assignment result.
Who wants to know and why?*
*Azjen, I. and Peterson, G.L. 1988. Contingent value measurement: theprice of everything and the value of nothing, pp. 65–76 in Peterson, G.L.Driver, B.L. and Gregory, R. (eds.), Amenity Resource Valuation: Integrating Economics with Other Disciplines, Venture Publishing, State College, PA. 260pp.
Post-Conference Dec. 21, 2019
WHO
WHY
WHAT
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90
The Ethical AppraisalHow do you know if your work is ethical and free from advocacy? “My conclusions
and opinions would be the same regardless of who the client is.”
This is a common test. If the question is “what does this log weigh?” or “what is the
DBH of this tree?” or “is this living tree a maple or an oak?” the answer should not
vary beyond normal limits. Does it clearly apply to tree appraisal opinions?
Step 1(C) requires the appraiser to identify the type of assignment result in the
client’s appraisal problem. If two competent and ethical appraisers, hired by two
different clients, solve different appraisal problems for two different types of
assignment result, their results would often vary. The same appraiser would often
develop varying results for Plaintiff or Defendant if the type of assignment result
varies for the same tree(s).
Even if the two appraisers solve for the same type of assignment result, their
opinions can vary based on their interpretations of fact. ASCA’s Guide to a
Professional Consulting Practice is clear: “Because professionals can reach
differing results, a consultant should be prepared to explain and justify her results
when faced with a divergent opinion from another professional.”
Post-Conference Dec. 21, 2019