Right-of-Way Valuations
Right-Of-Way Appraisals
As a proud member of the International Right of Way Association, I am part of an organization that includes other real estate appraisers, acquisition agents, environmental specialists, engineers, lawyers, property managers, relocation specialists, surveyors, and title experts.
Our work is relevant to public, quasi-public, and private organizations in the fields of energy, public infrastructure, transportation, telecommunications, and water. By the same token, there are individual property owners that can be impacted to a greater or lesser degree by a project proposed or sponsored by any of these major companies, organizations, or entities. As an independent real estate appraiser, my services are equally available to all parties.
Our specialized skills also apply to any homeowner who receives an offer from a neighbor proposing an access easement through their property. Both parties will want to know the true value of the easement and any impact on the remainder. When a reputable title company in a rare instance misses an easement during a title search, the experienced right-of-way appraiser can estimate the diminution of value to the property due to the easement. The telecommunications industry continues to expand. These major telecommunications companies may want to use your property as a cell site. A right-of-way professional can assist you in determining market rent.
The right of way appraiser can play a key role in real property asset management at all levels of government. A California city was considering just “giving” some land to a developer which would have increased the yield of the proposed subdivision by three (3) lots. At the time, I was thinking $50,000 per “paper” lot or $150,000. The City Council at the time asked the right question: What is the contributory value of the land? Even at 50% of the paper lot value, the developer would receive a win fall of $75,000. The decision-makers were forced to rely on the opinion of the public works director who thought the land had no value to the developer.
Another common occurrence in the public sector are abandonments. Generally, street, easement, or alley abandonments have a fairly “nominal” value, but there are cases where the value could be significant especially for larger parcels along high traffic corridors.
Properties do not come in nice square rectangles all the time. There are those odd-shaped parcels nobody knows what to do with. The right-of-way appraiser typically has the experience with these types of properties.
My right-of-way education and experience has only enhanced my ability to effectively address easements, encroachments, and other unique issues in non-right-of-way valuation assignments. In one instance (for example), I suggested the client hire a surveyor or engineer to ensure there were no major encroachment issues.
The career development of a real estate appraiser is similar to other professions like the law, business school, or an individual in one of the trades involved in an apprenticeship. We learn on a case-by-case basis working with other dedicated real estate appraisers who pass along the wisdom of those who practiced this craft before us. I am indebted to the men and women I have had the pleasure of working with over the past forty (40) years. I have also enjoyed taking the course offerings through the International Right of Way Association and the Appraisal Institute. My collegiate coursework at the University of California, Davis, the University of Washington, and the Haas School of Business have direct relevance in my daily real estate appraisal work.