Open AccessInternational Real Estate Review
Author(s) -
Michael J. Seiler
Publication year - 2014
Publication title -
journal of the asian real estate society
Language(s) - English
Resource type - Journals
ISSN - 1029-6131
DOI - 10.53383/100182
Subject(s) - valuation (finance) , real estate , damages , easement , income approach , market value , actuarial science , business , computer science , econometrics , environmental economics , economics , finance , law , political science
This study uses a behavioral approach to measure the impact of a partial eminent domain land taking (which affects easement rights and causes proximity damage) on residential property values. Existing appraisal methods are not suited to handle this type of unique valuation impact determination, yet diminution must be determined by the courts to establish proper "just compensation". To accomplish the quantification of damages, an experimental design is implemented that allows the market to voice its opinion of valuation impact through a mechanism other than direct comparable sales. Moreover, this behavioral methodology can and should be used in a number of additional real estate valuation applications.